BILL NUMBER: S9366
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the financial services law, in relation to the applica-
tion of certain provisions relating to commercial financing
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would create a safe harbor from liability for lenders who
comply with financial disclosure requirements in the financial services
law.
 
SUMMARY OF PROVISIONS:
Section one relates to the application of Section 813 of the Financial
Services Law by creating a safe harbor.
Section two is the effective date.
 
JUSTIFICATION:
In 2020, legislation passed and signed by the governor created a new
financial disclosure law requiring commercial lenders to disclose
certain information to borrowers. This law went into effect in August
2023. As a result of this law, some lenders have stopped lending to
certain businesses due to the rate disclosure provision of the law,
making it difficult for those businesses to secure funding. California,
which passed similar legislation, also experienced similar impacts, and
subsequently passed legislation like this bill, which has resulted in a
resumption of lending.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.