Maryland 2022 Regular Session

Maryland Senate Bill SB825 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		sb0825
9	6
10	7		SENATE BILL 825
11	8		I1, I2 2lr1138
12		-	CF ~~HB 1211~~
	9	+	CF 2lr2030
13	10		By: Senator Kramer
14	11		Introduced and read first time: February 7, 2022
15	12		Assigned to: Finance
16		-	Committee Report: Favorable with amendments
17		-	Senate action: Adopted
18		-	Read second time: March 5, 2022
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24		-	Consumer Credit – Commercial Financing Transactions ~~– Requirements~~ 2
	18	+	Consumer Credit – Commercial Financing Transactions 2
25	19
26	20		FOR the purpose of requiring that certain revenue, fees, and examination and investigation 3
27	21		fees and assessments relating to commercial financing transactions be credited to 4
28	22		the Nondepository Special Fund; regulating commercial financing transactions, 5
29	23		including by establishing requirements related to disclosures, calculations of annual 6
30	24		percentage rates, terms of repayments, and other related items, and the extension of 7
31	25		special offers; making a violation of this Act an unfair, abusive, or deceptive trade 8
32	26		practice under the Maryland Consumer Protection Act and subject to certain 9
33	27		enforcement and penalty provisions; and generally relating to commercial financing 10
34	28		transactions. 11
35	29
36	30		BY repealing and reenacting, with amendments, 12
37	31		Article – Commercial Law 13
38	32		Section 13–301(14)(xxxiv) and (xxxv) 14
39	33		Annotated Code of Maryland 15
40	34		(2013 Replacement Volume and 2021 Supplement) 16
41	35
42	36		BY adding to 17
43	37		Article – Commercial Law 18
44	38		Section 13–301(14)(xxxvi) 19
45	39		Annotated Code of Maryland 20
46	40		(2013 Replacement Volume and 2021 Supplement) 21
47	41
48		-	BY repealing and reenacting, with amendments, 22 2 SENATE BILL 825
	42	+	BY repealing and reenacting, with amendments, 22
	43	+	Article – Financial Institutions 23
	44	+	Section 11–610(a)(13)(i), (b)(1), and (c) 24
	45	+	Annotated Code of Maryland 25
	46	+	(2020 Replacement Volume and 2021 Supplement) 26
	47	+
	48	+	BY adding to 27 2 SENATE BILL 825
49	49
50	50
51	51		Article – Financial Institutions 1
52		-	Section 11–610(a)(13)(i), (b)(1), and (c) 2
53		-	Annotated Code of Maryland 3
54		-	(2020 Replacement Volume and 2021 Supplement) 4
	52	+	Section 12–1101 through 12–1115 to be under the new subtitle “Subtitle 11. 2
	53	+	Commercial Financing” 3
	54	+	Annotated Code of Maryland 4
	55	+	(2020 Replacement Volume and 2021 Supplement) 5
55	56
56		-	BY adding to 5
57		-	Article – Financial Institutions 6
58		-	Section 12–1101 through 12–1115 12–1114 to be under the new subtitle “Subtitle 11. 7
59		-	Commercial Financing” 8
60		-	Annotated Code of Maryland 9
61		-	(2020 Replacement Volume and 2021 Supplement) 10
	57	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
	58	+	That the Laws of Maryland read as follows: 7
62	59
63		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
64		-	That the Laws of Maryland read as follows: 12
	60	+	Article – Commercial Law 8
65	61
66		-	~~Article – Commercial Law 13~~
	62	+	13–301. 9
67	63
68		-	~~13–301. 14~~
	64	+	Unfair, abusive, or deceptive trade practices include any: 10
69	65
70		-	~~Unfair, abusive,~~ ~~or deceptive trade practices include any~~: 15
	66	+	(14) Violation of a provision of: 11
71	67
72		-	(14) ~~Violation of a provision of:~~ 16
	68	+	(xxxiv) The federal Servicemembers Civil Relief Act; [or] 12
73	69
74		-	(~~xxxiv~~) The ~~federal Servicemembers Civil Relief Act~~; [or~~] 17~~
	70	+	(xxxv) [§] SECTION 11–210 of the Education Article; or 13
75	71
76		-	(xxxv) [§] SECTION 11–210 of the Education Article; or 18
	72	+	(XXXVI) TITLE 12, SUBTITLE 11 OF THE FINANCIAL 14
	73	+	INSTITUTIONS ARTICLE; OR 15
77	74
78		-	(XXXVI) TITLE 12, SUBTITLE 11 OF THE FINANCIAL 19
79		-	INSTITUTIONS ARTICLE; OR 20
	75	+	Article – Financial Institutions 16
80	76
81		-	~~Article – Financial Institutions 21~~
	77	+	11–610. 17
82	78
83		-	~~11–610. 22~~
	79	+	(a) There is a Nondepository Special Fund that consists of: 18
84	80
85		-	(a) There is a Nondepository Special Fund that consists of: 23
	81	+	(13) (i) Any other fee, examination or investigation fee or assessment, or 19
	82	+	revenue received by the Commissioner under this subtitle, Subtitles 2, 3, 4, and 5 of this 20
	83	+	title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, [Subtitle] SUBTITLES 12 21
	84	+	AND 14 of the Commercial Law Article, and Title 14, Subtitles 12 and 19 of the Commercial 22
	85	+	Law Article; and 23
86	86
87		-	(13) (i) Any other fee, examination or investigation fee or assessment, or 24
88		-	revenue received by the Commissioner under this subtitle, Subtitles 2, 3, 4, and 5 of this 25
89		-	title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, [Subtitle] SUBTITLES 12 26
90		-	AND 14 of the Commercial Law Article, and Title 14, Subtitles 12 and 19 of the Commercial 27
91		-	Law Article; and 28
	87	+	(b) Notwithstanding subsection (a) of this section: 24
92	88
93		-	(b) Notwithstanding subsection (a) of this section: 29
94		-
95		-	(1) The Commissioner shall pay all fines and penalties collected by the 30
96		-	Commissioner under Title 2, Subtitle 1 of this article, this subtitle, Subtitles 2, 3, 4, and 5 31 SENATE BILL 825 3
	89	+	(1) The Commissioner shall pay all fines and penalties collected by the 25
	90	+	Commissioner under Title 2, Subtitle 1 of this article, this subtitle, Subtitles 2, 3, 4, and 5 26
	91	+	of this title, Title 12, Subtitles 1, 4, 9, [and] 10, AND 11 of this article, Title 12, Subtitle 14 27
	92	+	of the Commercial Law Article, and Title 14, Subtitles 12 and 19 of the Commercial Law 28
	93	+	Article into the General Fund of the State; and 29
	94	+	SENATE BILL 825 3
97	95
98	96
99		-	of ~~this title,~~ ~~Title 12,~~ ~~Subtitles 1,~~ ~~4, 9, [and] 10,~~ AND 11 of ~~this article, Title 12, Subtitle 14~~ 1
100		-	of the ~~Commercial Law Article,~~ and ~~Title 14, Subtitles 12 and 19~~ of the ~~Commercial Law~~ 2
101		-	~~Article into the General Fund of the State; and~~ 3
	97	+	(c) The purpose of the Fund is to cover the direct and indirect costs of fulfilling 1
	98	+	the statutory and regulatory duties of the Commissioner and the State Collection Agency 2
	99	+	Licensing Board related to: 3
102	100
103		-	(c) The purpose of the Fund is to cover the direct and indirect costs of fulfilling 4
104		-	the statutory and regulatory duties of the Commissioner and the State Collection Agency 5
105		-	Licensing Board related to: 6
	101	+	(1) Title 2, Subtitle 1 of this article; 4
106	102
107		-	(1) ~~Title 2, Subtitle 1 of~~ this ~~article~~; 7
	103	+	(2) This subtitle; 5
108	104
109		-	(2) This ~~subtitle~~; 8
	105	+	(3) Subtitle 2 of this title; 6
110	106
111		-	(3) Subtitle 2 of this title; 9
	107	+	(4) Subtitle 3 of this title; 7
112	108
113		-	(4) Subtitle 3 of this title; 10
	109	+	(5) Subtitle 4 of this title; 8
114	110
115		-	(5) Subtitle 4 of this title; 11
	111	+	(6) Subtitle 5 of this title; 9
116	112
117		-	(6) Subtitle 5 of this ~~title~~; 12
	113	+	(7) Title 12, Subtitle 1 of this article; 10
118	114
119		-	(7) Title 12, Subtitle 1 of this article; 13
	115	+	(8) Title 12, Subtitle 4 of this article; 11
120	116
121		-	(8) Title 12, Subtitle 4 of this article; 14
	117	+	(9) Title 12, Subtitle 9 of this article; 12
122	118
123		-	(9) Title 12, Subtitle 9 of this article; 15
	119	+	(10) Title 12, Subtitle 10 of this article; 13
124	120
125		-	(10) Title 12, Subtitle 10 of this article; 16
	121	+	(11) TITLE 12, SUBTITLE 11 OF THIS ARTICLE; 14
126	122
127		-	(11) TITLE ~~12, SUBTITLE 11~~ OF ~~THIS~~ ARTICLE; 17
	123	+	[(11)] (12) Title 7 of the Business Regulation Article; 15
128	124
129		-	[(11)] (12) Title 7 of the ~~Business Regulation~~ Article; 18
	125	+	[(12)] (13) Title 12 of the Commercial Law Article; 16
130	126
131		-	[(12)] (13) Title 12 of the Commercial Law Article; 19
	127	+	[(13)] (14) Title 14, Subtitles 12, 19, and 42 of the Commercial Law Article; 17
132	128
133		-	[(13)] (14) Title 14, Subtitles 12, 19, and 42 of the ~~Commercial Law~~ Article; 20
	129	+	[(14)] (15) Title 7, Subtitles 1, 3, 4, and 5 of the Real Property Article; 18
134	130
135		-	[(14)] (15) Title 7, ~~Subtitles 1, 3, 4, and 5~~ of the ~~Real Property~~ Article; 21
	131	+	[(15)] (16) Title 26, Subtitle 6 of the Education Article; and 19
136	132
137		-	[(15)] (16) ~~Title 26,~~ ~~Subtitle 6 of~~ the ~~Education Article;~~ ~~and 22~~
	133	+	[(16)] (17) Any other expense authorized in the State budget. 20
138	134
139		-	~~[(16)] (17) Any other expense authorized in the State budget~~. 23
	135	+	SUBTITLE 11. COMMERCIAL FINANCING. 21
140	136
141		-	~~SUBTITLE 11~~. ~~COMMERCIAL FINANCING. 24~~
	137	+	12–1101. 22
142	138
143		-	12–1101. 25
144		-	4 SENATE BILL 825
	139	+	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 23
	140	+	INDICATED. 24
	141	+
	142	+	(B) (1) “CLOSED–END FINANCING ” MEANS A CLOSED –END EXTENSION OF 25 4 SENATE BILL 825
145	143
146	144
147		-	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
148		-	INDICATED. 2
	145	+	CREDIT, SECURED OR UNSECURED , INCLUDING EQUIPMENT FINANCING, THAT: 1
149	146
150		-	(B) ~~(1) “CLOSED–END FINANCING ” MEANS~~ A ~~CLOSED –END~~ ~~EXTENSION OF 3~~
151		-	~~CREDIT, SECURED OR UNSECURED , INCLUDING EQUIPMENT FINANCING,~~ ~~THAT: 4~~
	147	+	(I) DOES NOT MEET THE DEF INITION OF A LEASE U NDER 2
	148	+	ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE; AND 3
152	149
153		-	(I) DOES NOT ~~MEET THE DEF INITION OF A LEASE U NDER 5~~
154		-	~~ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE;~~ ~~AND 6~~
	150	+	(II) THE PROCEEDS OF WHICH A RECIPIENT DOES NOT I NTEND 4
	151	+	TO USE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSE S. 5
155	152
156		-	(II) ~~THE PROCEEDS OF WHICH A RECIPIENT DOES NOT INTEND 7~~
157		-	~~TO USE PRIMARILY FOR PERSONAL,~~ ~~FAMILY, OR HOUSEHOLD PURPOSE S~~. 8
	153	+	(2) “CLOSED–END FINANCING ” INCLUDES FINANCING THAT HAS AN 6
	154	+	ESTABLISHED PRINCIPA L AMOUNT AND DURATIO N. 7
158	155
159		-	(2) “CLOSED–END FINANCING ” INCLUDES FINANCING T HAT HAS AN 9
160		-	ESTABLISHED PRINCIPA L AMOUNT AND DURATIO N. 10
	156	+	(C) “COMMERCIAL FINANCING ” MEANS OPEN –END FINANCING , 8
	157	+	CLOSED–END FINANCING , SALES–BASED FINANCING , A FACTORING TRANSACT ION, 9
	158	+	OR ANOTHER FORM OF FINANC ING, THE PROCEEDS OF WHIC H THE RECIPIENT DOES 10
	159	+	NOT INTEND TO USE PR IMARILY FOR PERSONAL , FAMILY, OR HOUSEHOLD 11
	160	+	PURPOSES. 12
161	161
162		-	(C) “COMMERCIAL FINANCING ” MEANS OPEN –END FINANCING , 11
163		-	CLOSED–END FINANCING , SALES–BASED FINANCING , A FACTORING TRANSACT ION, 12
164		-	OR ANOTHER FORM OF FI NANCING, THE PROCEEDS OF WHIC H THE RECIPIENT DOES 13
165		-	NOT INTEND TO USE PR IMARILY FOR PERSONAL , FAMILY, OR HOUSEHOLD 14
166		-	PURPOSES. 15
	162	+	(D) “FACTORING TRANSACTION ” MEANS AN ACCOUNTS RE CEIVABLE 13
	163	+	PURCHASE TRANSACTION: 14
167	164
168		-	(D) “FACTORING TRANSACTION ” MEANS AN ACCOUNTS RE CEIVABLE 16
169		-	PURCHASE TRANSACTION : 17
	165	+	(1) THAT INCLUDES AN AGREEMENT TO PURCHAS E, TRANSFER, OR 15
	166	+	SELL A LEGALLY ENFORCEABLE CLAIM FOR PAYMENT HE LD BY A RECIPIENT FO R 16
	167	+	GOODS THE RECIPIENT HAS SUPPLI ED OR SERVICES THE R ECIPIENT HAS RENDERED 17
	168	+	THAT HAVE BEEN ORDERED BUT FOR WHICH PAYMENT HAS NO T BEEN MADE; AND 18
170	169
171		-	(1) THAT INCLUDES AN AGRE EMENT TO PURCHASE , TRANSFER, OR 18
172		-	SELL A LEGALLY ENFOR CEABLE CLAIM FOR PAY MENT HELD BY A RECIP IENT FOR 19
173		-	GOODS THE RECIPIENT HAS SUPPLIED OR SERV ICES THE RECIPIENT H AS RENDERED 20
174		-	THAT HAVE BEEN ORDER ED BUT FOR WHICH PAY MENT HAS NOT BEEN MA DE; AND 21
	170	+	(2) THE PROCEEDS OF WHICH TH E RECIPIENT DOES NOT INTEND TO 19
	171	+	USE PRIMARILY FOR PE RSONAL, FAMILY, OR HOUSEHOLD PURPOSE S. 20
175	172
176		-	(2) THE ~~PROCEED S~~ OF ~~WHICH THE RECIP IENT DOES NOT INTEND TO 22~~
177		-	~~USE PRIMARILY FOR PE RSONAL,~~ ~~FAMILY, OR HOUSEHOLD PURPOSE S~~. 23
	173	+	(E) (1) “FINANCE CHARGE ” MEANS THE COST OF COMMERCIAL 21
	174	+	FINANCING REPRESENTED AS A DOL LAR AMOUNT . 22
178	175
179		-	(E) (1) “FINANCE CHARGE ” MEANS THE COST OF CO MMERCIAL 24
180		-	FINANCING REPRESENTE D AS A DOLLAR AMOUNT . 25
	176	+	(2) “FINANCE CHARGE ” INCLUDES: 23
181	177
182		-	(2) “FINANCE CHARGE ” INCLUDES: 26
	178	+	(I) A CHARGE PAYABLE DIREC TLY OR INDIRECTLY BY A 24
	179	+	RECIPIENT AND IMPOSE D DIRECTLY OR INDIRE CTLY BY A PROVIDER AS AN 25
	180	+	INCIDENT TO OR A CON DITION OF THE EXTENS ION OF COMMERCIAL FINANCING; 26
183	181
184		-	(I) A CHARGE PAYABLE DIRECTLY OR INDIRECTLY BY A 27
185		-	RECIPIENT AND IMPOSE D DIRECTLY OR INDIRE CTLY BY A PROVIDER A S AN 28
186		-	INCIDENT TO OR A CON DITION OF THE EXTENS ION OF COMMERCIAL FI NANCING; 29
	182	+	(II) A CHARGE THAT WOULD BE INCLUD ED UNDER 12 C.F.R. 27
	183	+	PART 1026.4 IF A TRANSACTION WERE SUBJECT TO 12 C.F.R. PART 1026.4; AND 28
187	184
188		-	(II) ~~A CHARGE THAT WOULD BE INCLUDED UNDER 12 C.F.R. 30~~
189		-	~~PART 1026.4 IF A TRANSACTION WERE SUBJECT TO 12 C.F.R~~. ~~PART 1026.4; AND 31~~
	185	+	(III) ANY ADDITIONAL CHARGES DETERMINED B Y THE 29
	186	+	COMMISSIONER . 30
190	187		SENATE BILL 825 5
191	188
192	189
193		-	(III) ANY ADDITIONAL CHARGE S DETERMINED BY THE 1
194		-	COMMISSIONER . 2
	190	+	(F) (1) “OPEN–END FINANCING ” MEANS AN AGREEMENT F OR ONE OR 1
	191	+	MORE EXTENSIONS OF SECURED OR UNSECURED OPEN–END CREDIT , THE 2
	192	+	PROCEEDS OF WHICH A RECIPIENT DOES NOT I NTEND TO USE PRIMARI LY FOR 3
	193	+	PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES . 4
195	194
196		-	(F) (1) “OPEN–END FINANCING ” MEANS AN AGREEMENT F OR ONE OR 3
197		-	MORE EXTENSIONS OF S ECURED OR UNSECURED OPEN–END CREDIT , THE 4
198		-	PROCEEDS OF WHICH A RECIPIENT DOES NOT INTEND TO USE PRIMARILY FOR 5
199		-	PERSONAL, FAMILY, OR HOUSEHOLD PURPOSE S. 6
	195	+	(2) “OPEN–END FINANCING ” INCLUDES CREDIT EXTE NDED BY A 5
	196	+	PROVIDER UNDER A PLA N IN WHICH: 6
200	197
201		-	(2) ~~“OPEN–END FINANCING ” INCLUDES CREDIT EXTE NDED BY A~~ 7
202		-	~~PROVIDER UNDER A PLA N IN WHICH:~~ 8
	198	+	(I) THE PROVIDER REASONAB LY CONTEMPLATES REPEATED 7
	199	+	TRANSACTIONS ; 8
203	200
204		-	(I) THE PROVIDER ~~REASONAB LY CONTEMPLATES REPE ATED~~ 9
205		-	~~TRANSACTIONS~~ ; 10
	201	+	(II) THE PROVIDER MAY IMPO SE A FINANCE CHARGE ON AN 9
	202	+	OUTSTANDING UNPAID B ALANCE; AND 10
206	203
207		-	(II) THE PROVIDER MAY IMPOSE A FINANCE CHARGE ON AN 11
208		-	OUTSTANDING UNPAID B ALANCE; AND 12
	204	+	(III) THE AMOUNT OF CREDIT THAT MAY B E EXTENDED TO A 11
	205	+	RECIPIENT DURING THE TERM OF THE PLAN, UP TO A LIMIT THAT THE PROVIDER 12
	206	+	SETS, IS GENERALLY MADE AV AILABLE TO THE EXTENT THAT A NY OUTSTANDING 13
	207	+	BALANCE IS REPAID . 14
209	208
210		-	(III) THE AMOUNT OF CREDIT THAT MAY BE EXTENDED TO A 13
211		-	RECIPIENT DURING THE TERM OF THE PLAN , UP TO A LIMIT THAT T HE PROVIDER 14
212		-	SETS, IS GENERALLY MADE AV AILABLE TO THE EXTEN T THAT ANY OUTSTANDING 15
213		-	BALANCE IS REPAID . 16
	209	+	(G) (1) “PROVIDER” MEANS A PERSON THAT EXTENDS A SPECIFIC O FFER 15
	210	+	OF COMMERCIAL FINANCING TO A RECIPIENT. 16
214	211
215		-	(~~G) (1~~) “PROVIDER” ~~MEANS~~ A PERSON THAT ~~EXTENDS A SPECIFIC O FFER~~ 17
216		-	OF COMMERCIAL ~~FINANC ING TO~~ A ~~RECIPIENT~~ . 18
	212	+	(2) “PROVIDER” INCLUDES A PERSON THAT SOLICITS AND PRESENT S 17
	213	+	A SPECIFIC OFFER OF COMMERCIAL FINANCING ON BEHALF OF A THIRD PARTY. 18
217	214
218		-	(2) “PROVIDER” INCLUDES A PERSON TH AT SOLICITS AND PRES ENTS 19
219		-	A SPECIFIC OFFER OF COMMERCIAL FINANCING ON BEHALF OF A THIRD PARTY. 20
	215	+	(H) (1) “RECIPIENT” MEANS A PERSON , OR THE PERSON ’S AUTHORIZED 19
	216	+	REPRESENTATIVE , THAT APPLIES FOR COMMERCI AL FINANCING AND IS MADE A 20
	217	+	SPECIFIC OFFER OF CO MMERCIAL FINANCING B Y A PROVIDER. 21
220	218
221		-	(H) (1) “RECIPIENT” MEANS A PERSON , OR THE PERSON ’S AUTHORIZED 21
222		-	REPRESENTATIVE , THAT APPLIES FOR COM MERCIAL FINANCING AN D IS MADE A 22
223		-	SPECIFIC OFFER OF CO MMERCIAL FINANCING B Y A PROVIDER. 23
	219	+	(2) “RECIPIENT” DOES NOT INCLUDE A PERSON ACTING AS A 22
	220	+	BROKER. 23
224	221
225		-	(2) “RECIPIENT” DOES NOT INCLUDE A P ERSON ACTING AS A 24
226		-	BROKER. 25
	222	+	(I) (1) “SALES–BASED FINANCING ” MEANS A TRANSACTION : 24
227	223
228		-	(I) (1) “SALES–BASED FINANCING ” MEANS A TRANSACTION : 26
	224	+	(I) THAT IS REPAID BY A RECIPIENT TO A PROVIDER OVER TIME 25
	225	+	AS A PERCENTAGE OF S ALES OR REVENUE, IN WHICH THE PAYMENT AMOUNT MAY 26
	226	+	INCREASE OR DECREASE ACCORDING TO THE VOLUME OF SAL ES MADE OR REVENUE 27
	227	+	RECEIVED BY THE RECI PIENT; AND 28
229	228
230		-	(I) THAT IS REPAID BY A RECIPIENT TO A PROVID ER OVER TIME 27
231		-	AS A PERCENTAGE OF S ALES OR REVENUE , IN WHICH THE PAYMENT AMOUNT MAY 28
232		-	INCREASE OR DECREASE ACCORDING TO THE VOL UME OF SALES MADE OR REVENUE 29
233		-	RECEIVED BY THE RECI PIENT; AND 30
	229	+	(II) THE PROCEEDS OF WHICH THE RECIPIENT DOES N OT 29
	230	+	INTEND TO USE PRIMAR ILY FOR PERSONAL , FAMILY, OR HOUSEHOLD PURPOSE S. 30
234	231
235		-	(II) THE PROCEEDS OF WHICH THE RECIPIENT DOES N OT 31
236		-	INTEND TO USE PRIMAR ILY FOR PERSONAL , FAMILY, OR HOUSEHOLD PURPOSE S. 32 6 SENATE BILL 825
	232	+	(2) “SALES–BASED FINANCING ” INCLUDES A TRANSACTION 31 6 SENATE BILL 825
	233	+
	234	+
	235	+	CONTAINING A TRUE–UP MECHANISM UNDER WHICH THE FINANCING IS REPAID AS 1
	236	+	A FIXED PAYMENT BUT PROVIDES FOR A RECONCILIATION PROCESS THAT ADJUSTS 2
	237	+	THE PAYMENT TO AN AM OUNT THAT IS A PERCENTAGE OF SALES OR REVENUE . 3
	238	+
	239	+	(J) “SPECIFIC OFFER ” MEANS THE TERMS OF C OMMERCIAL FINANCING 4
	240	+	THAT ARE QUOTED TO A RECIPIEN T, BASED ON INFORMATION OBTAINED FROM OR 5
	241	+	ABOUT THE RECIPIENT , WHICH IF ACCEPTED BY THE RECIPIENT ARE BINDING ON A 6
	242	+	PROVIDER, AS APPLICABLE, SUBJECT TO REQUIREME NTS STATED IN THE TE RMS OF 7
	243	+	THE COMMERCIAL FINAN CING. 8
	244	+
	245	+	12–1102. 9
	246	+
	247	+	THIS SUBTITLE DOES NOT APPLY TO: 10
	248	+
	249	+	(1) A FINANCIAL INSTITUTIO N; 11
	250	+
	251	+	(2) A PERSON ACTING AS A TECHNOLOGY SERVICE S PROVIDER TO AN 12
	252	+	ENTITY EXEMPT UNDER THIS SE CTION FOR USE AS PAR T OF THE ENTITY ’S 13
	253	+	COMMERCIAL FINANCING PROGRAM IF THE PERSON DOES N OT HAVE AN INTEREST, 14
	254	+	ARRANGEMENT , OR AGREEMENT TO PURC HASE ANY INTEREST IN THE COMMERCIAL 15
	255	+	FINANCING EXTENDED B Y THE ENTITY IN CONN ECTION WITH THE COMMERCIAL 16
	256	+	FINANCING PROGRAM; 17
	257	+
	258	+	(3) A LENDER REGULATED UND ER THE FEDERAL FARM CREDIT ACT; 18
	259	+
	260	+	(4) A COMMERCIAL FINANCING TRANSACTION SECURED BY REAL 19
	261	+	PROPERTY; 20
	262	+
	263	+	(5) A LEASE AS DEFINED IN ARTICLE 2A OF THE UNIFORM 21
	264	+	COMMERCIAL CODE; 22
	265	+
	266	+	(6) A PROVIDER OR OTHER PERSON WHO MAKES NO MORE TH AN FIVE 23
	267	+	COMMERCIAL FINANCING TRANSACTIO NS IN THE STATE IN A 12–MONTH PERIOD ; 24
	268	+
	269	+	(7) A COMMERCIAL FINANCING TRANSACTION OVER $2,500,000; OR 25
	270	+
	271	+	(8) A COMMERCIAL FINANCING TRANSACTION : 26
	272	+
	273	+	(I) IN WHICH THE RECIPIENT IS: 27
	274	+
	275	+	1. A DEALER, OR AN AFFILIATE OF A DEALER, AS 28
	276	+	DEFINED IN § 11–111 OF THE TRANSPORTATION ARTICLE; OR 29
	277	+	SENATE BILL 825 7
	278	+
	279	+
	280	+	2. A RENTAL VEHICLE COMPANY, OR AN AFFILIATE OF A 1
	281	+	RENTAL VEHICLE COMPANY, AS DEFINED IN § 18–108 OF THE TRANSPORTATION 2
	282	+	ARTICLE; AND 3
	283	+
	284	+	(II) MADE UNDER A COMMERCIAL FINANCING AGREEMENT OR 4
	285	+	COMMERCIAL OPEN –END CREDIT PLAN OF AT LEAST $50,000, INCLUDING A 5
	286	+	COMMERCIAL LOAN MADE IN ACCORDANCE WITH T HE COMMERCIAL FINANCING 6
	287	+	TRANSACTION . 7
	288	+
	289	+	12–1103. 8
	290	+
	291	+	(A) (1) FOR PURPOSES OF DETER MINING WHETHER A FIN ANCING 9
	292	+	TRANSACTION IS A COMMERCIAL FINA NCING TRANSACTION , A PROVIDER MAY RELY 10
	293	+	ON A STATEMENT OF IN TENDED PURPOSE MADE BY A RECIPIENT. 11
	294	+
	295	+	(2) A RECIPIENT’S STATEMENT OF INTEN DED PURPOSE MAY BE : 12
	296	+
	297	+	(I) CONTAINED IN THE COMMERCIAL FINANCING 13
	298	+	APPLICATION, COMMERCIAL FINANCING AGREEMENT , OR OTHER DOCUMEN T 14
	299	+	SIGNED OR CONSENTED TO BY THE RECIPIENT ; 15
	300	+
	301	+	(II) A SEPARATE STATEMENT S IGNED, MANUALLY OR 16
	302	+	ELECTRONICALLY , BY THE RECIPIENT ; OR 17
	303	+
	304	+	(III) IF DOCUMENTED IN THE RECIPIENT’S APPLICATION FILE , 18
	305	+	PROVIDED ORALLY BY T HE RECIPIENT. 19
	306	+
	307	+	(B) A PROVIDER MAY NOT BE REQUIRED TO VERIFY THAT THE PROCEEDS 20
	308	+	OF A COMMERCIAL FINA NCING TRANSACTION ARE BEING USED IN ACCORDANCE 21
	309	+	WITH A RECIPIENT’S STATEMENT OF INTEN DED PURPOSE . 22
	310	+
	311	+	(C) THE EXTENSION OF A SPECI FIC OFFER OR PROVISI ON OF DISCLOSURES 23
	312	+	FOR COMMERCIAL FINAN CING BY A PROVIDER , IN AND OF ITSELF , MAY NOT BE 24
	313	+	CONSTRUED TO MEAN TH AT THE PROVIDER IS ORIGINAT ING, MAKING, FUNDING, OR 25
	314	+	PROVIDING COMMERCIAL FINANCING. 26
	315	+
	316	+	12–1104. 27
	317	+
	318	+	(A) EXCEPT AS PROVIDED IN § 12–1108 OF THIS SUBTITLE , FOR PURPOSES 28
	319	+	OF THIS SUBTITLE, AN ANNUAL PERCENTAGE RATE SHAL L BE: 29
	320	+
	321	+	(1) EXPRESSED AS A YEARLY RATE, INCLUDING ALL FEES AND 30
	322	+	FINANCE CHARGES ; AND 31 8 SENATE BILL 825
237	323
238	324
239	325
240		-	(2) “SALES–BASED FINANCING ” INCLUDES A TRANSACTI ON 1
241		-	CONTAINING A TRUE –UP MECHANISM UNDER WHICH THE FINANCING IS REPAID AS 2
242		-	A FIXED PAYMENT BUT PROVIDES FOR A RECON CILIATION PROCESS TH AT ADJUSTS 3
243		-	THE PAYMENT TO AN AM OUNT THAT IS A PERCE NTAGE OF SALES OR RE VENUE. 4
	326	+	(2) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH IN 1
	327	+	LENDING ACT. 2
244	328
245		-	(J) “SPECIFIC OFFER ” MEANS THE TERMS OF C OMMERCIAL FINANCING 5
246		-	THAT ARE QUOTED TO A RECIPIENT, BASED ON INFORMATION OBTAINED FROM OR 6
247		-	ABOUT THE RECIPIENT , WHICH IF ACCEPTED BY THE RECIPIENT ARE BI NDING ON A 7
248		-	PROVIDER, AS APPLICABLE, SUBJECT TO REQUIREME NTS STATED IN THE TE RMS OF 8
249		-	THE COMMERCIAL FINAN CING. 9
	329	+	(B) IN ADDITION TO THE RE QUIREMENTS OF SUBSEC TION (A)(2) OF THIS 3
	330	+	SECTION, AN ANNUAL PERCENTAGE RAT E SHALL BE CALCULATED BASED ON THE 4
	331	+	ESTIMATED TERM OF RE PAYMENT AND THE PROJ ECTED PERIODIC PAYME NT 5
	332	+	AMOUNTS OF A COMMERCIAL FINA NCING TRANSACTION , REGARDLESS OF WHETHE R 6
	333	+	FEDERAL LAW OR REGUL ATION WOULD REQUIRE AN ANNUAL PERCENTAGE RA TE TO 7
	334	+	BE CALCULATED FOR A CERTAIN TRANSACTION . 8
250	335
251		-	12–~~1102~~. 10
	336	+	12–1105. 9
252	337
253		-	THIS SUBTITLE DOES NO T APPLY TO: 11
	338	+	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 10
	339	+	INDICATED. 11
254	340
255		-	(1) (I) A FINANCIAL INSTITUTIO N A FEDERAL OR STATE BANK, 12
256		-	CREDIT UNION, OR SAVINGS ASSOCIATI ON; OR 13
	341	+	(2) “ESTIMATED TERM OF REPAYMENT ” MEANS THE AMOUNT OF 12
	342	+	TIME REQUIRED FOR TH E PERIODIC PAYMENTS MADE BY A RECIPIENT IN A 13
	343	+	SALES–BASED FINANCING TRAN SACTION TO EQUAL THE TOTAL A MOUNT REQUIRED 14
	344	+	TO BE REPAID. 15
257	345
258		-	(II) ~~A SUBSIDIARY OR AFFILI ATE OF AN ORGANIZATI ON LISTED 14~~
259		-	~~IN ITEM (I)~~ OF ~~THIS ITEM;~~ 15
	346	+	(3) “TOTAL REPAYMENT AMOUN T” MEANS THE DISBURSEME NT 16
	347	+	AMOUNT OF A SALES–BASED FINANCING TRANSACTION PLUS THE FINANCE CHA RGE. 17
260	348
261		-	(2) A PERSON ACTING AS A T ECHNOLOGY SERVICES P ROVIDER TO AN 16
262		-	ENTITY EXEMPT UNDER THIS SECTION FOR USE AS PART OF THE ENTIT Y’S 17
263		-	COMMERCIAL FINANCING PROGRAM IF THE PERSO N DOES NOT HAVE AN I NTEREST, 18
264		-	ARRANGEMENT , OR AGREEMENT TO PURC HASE ANY INTEREST IN THE COMMERCIAL 19
265		-	FINANCING EXTENDED B Y THE ENTITY IN CONN ECTION WITH THE COMMERCIAL 20
266		-	FINANCING PROGRAM ; 21
	349	+	(B) (1) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORMATIO N TO 18
	350	+	A RECIPIENT WHEN EXTENDING A SPECIFIC OFFER OF SALES –BASED FINANCING: 19
267	351
268		-	(3) A LENDER REGULATED UND ER THE FEDERAL FARM CREDIT ACT; 22
	352	+	(I) THE TOTAL AMOUNT OF T HE SALES–BASED FINANCING AND 20
	353	+	THE DISBURSEMENT AMOUNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 21
	354	+	MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBURSEMENT ; 22
269	355
270		-	(4) A COMMERCIAL FINANCING TRANSACTION SECURED BY REAL 23
271		-	PROPERTY; 24
	356	+	(II) THE FINANCE CHARGE ; 23
272	357
273		-	(5) A LEASE AS DEFINED IN ARTICLE 2A OF THE UNIFORM 25
274		-	COMMERCIAL CODE; 26
	358	+	(III) THE ESTIMATED ANNUAL PERCENTAGE RATE OF THE 24
	359	+	SALES–BASED FINANCING , USING THE WORDS “ANNUAL PERCENTAGE RATE ” OR THE 25
	360	+	ABBREVIATION “APR”; 26
275	361
276		-	(6) A PROVIDER OR OTHER PERSON WHO MAKES NO MORE THAN F IVE 27
277		-	COMMERCIAL FINANCING TRANSACTIONS IN THE STATE IN A 12–MONTH PERIOD ; 28
	362	+	(IV) THE TOTAL REPAYMENT A MOUNT; 27
278	363
279		-	(7) ~~A COMMERCIAL FINANCING TRANSACTION OVER $2,500,000~~; ~~OR 29~~
	364	+	(V) THE ESTIMATED TERM OF REPAYMENT ; 28
280	365
281		-	(8) A COMMERCIAL FINANCING TRANSACTION : 30
282		-	SENATE BILL 825 7
283		-
284		-
285		-	(I) IN WHICH THE RECIPIEN T IS: 1
286		-
287		-	1. A DEALER, OR AN AFFILIATE OF A DEALER, AS 2
288		-	DEFINED IN § 11–111 OF THE TRANSPORTATION ARTICLE; OR 3
289		-
290		-	2. A RENTAL VEHICLE COMPA NY, OR AN AFFILIATE OF A 4
291		-	RENTAL VEHICLE COMPA NY, AS DEFINED IN § 18–108 OF THE TRANSPORTATION 5
292		-	ARTICLE; AND 6
293		-
294		-	(II) MADE UNDER A COMMERCIAL FINAN CING AGREEMENT OR 7
295		-	COMMERCIAL OPEN –END CREDIT PLAN OF A T LEAST $50,000, INCLUDING A 8
296		-	COMMERCIAL LOAN MADE IN ACCORDANCE WITH T HE COMMERCIAL FINANC ING 9
297		-	TRANSACTION ; OR 10
298		-
299		-	(9) A COMMERCIAL FINANCING TRANSACTION THAT IS A FACTORING 11
300		-	TRANSACTION , AN ADVANCE , OR A SIMILAR TRANSAC TION OF ACCOUNTS 12
301		-	RECEIVABLES OWED TO A HEALTH CARE PROVID ER BECAUSE OF A PATI ENT’S 13
302		-	PERSONAL INJURY TREA TED BY THE HEALTH CA RE PROVIDER. 14
303		-
304		-	12–1103. 15
305		-
306		-	(A) (1) FOR PURPOSES OF DETER MINING WHETHER A FIN ANCING 16
307		-	TRANSACTION IS A COMMERCIAL FINANCING TRANSACTIO N, A PROVIDER MAY RELY 17
308		-	ON A STATEMENT OF IN TENDED PURPOSE MADE BY A RECIPIENT. 18
309		-
310		-	(2) A RECIPIENT’S STATEMENT OF INTEN DED PURPOSE MAY BE : 19
311		-
312		-	(I) CONTAINED IN THE COMM ERCIAL FINANCING 20
313		-	APPLICATION, COMMERCIAL FINANCING AGREEMENT , OR OTHER DOCUMENT 21
314		-	SIGNED OR CONSENTED TO BY THE RECIPIENT ; 22
315		-
316		-	(II) A SEPARATE STATEMENT S IGNED, MANUALLY OR 23
317		-	ELECTRONICALLY , BY THE RECIPIENT ; OR 24
318		-
319		-	(III) IF DOCUMENTED IN THE RECIPIENT’S APPLICATION FILE , 25
320		-	PROVIDED ORALLY BY T HE RECIPIENT. 26
321		-
322		-	(B) A PROVIDER MAY NOT BE REQUIRED TO VERIFY T HAT THE PROCEEDS 27
323		-	OF A COMMERCIAL FINA NCING TRANSACTION AR E BEING USED IN ACCO RDANCE 28
324		-	WITH A RECIPIENT ’S STATEMENT OF INTEN DED PURPOSE . 29
325		-
326		-	(C) THE EXTENSION OF A SP ECIFIC OFFER OR PROV ISION OF DISCLOSURES 30
327		-	FOR COMMERCIAL FINAN CING BY A PROVIDER , IN AND OF ITSELF , MAY NOT BE 31 8 SENATE BILL 825
328		-
329		-
330		-	CONSTRUED TO MEAN TH AT THE PROVIDER IS O RIGINATING, MAKING, FUNDING, OR 1
331		-	PROVIDING COMMERCIAL FINANCING. 2
332		-
333		-	12–1104. 3
334		-
335		-	(A) EXCEPT AS PROVIDED IN § 12–1108 § 12–1107 OF THIS SUBTITLE , FOR 4
336		-	PURPOSES OF THIS SUB TITLE, AN ANNUAL PERCENTAGE RATE SHALL BE: 5
337		-
338		-	(1) EXPRESSED AS A YEARLY RATE, INCLUDING ALL FEES A ND 6
339		-	FINANCE CHARGES ; AND 7
340		-
341		-	(2) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH IN 8
342		-	LENDING ACT. 9
343		-
344		-	(B) IN ADDITION TO THE RE QUIREMENTS OF SU BSECTION (A)(2) OF THIS 10
345		-	SECTION, AN ANNUAL PERCENTAGE RATE SHALL BE CALCUL ATED BASED ON THE 11
346		-	ESTIMATED TERM OF RE PAYMENT AND THE PROJ ECTED PERIODIC PAYME NT 12
347		-	AMOUNTS OF A COMMERC IAL FINANCING TRANSA CTION, REGARDLESS OF WHETHE R 13
348		-	FEDERAL LAW OR REGUL ATION WOULD REQUIRE AN ANNUAL PE RCENTAGE RATE TO 14
349		-	BE CALCULATED FOR A CERTAIN TRANSACTION . 15
350		-
351		-	12–1105. 12–1104. 16
352		-
353		-	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17
354		-	INDICATED. 18
355		-
356		-	(2) “ESTIMATED TERM OF REP AYMENT” MEANS THE AMOUNT OF 19
357		-	TIME REQUIRED FOR TH E PERIODIC PAYMENTS MADE BY A RECIPIENT IN A 20
358		-	SALES–BASED FINANCING TRAN SACTION TO EQUAL THE TOTAL AMOUNT REQUIRE D 21
359		-	TO BE REPAID. 22
360		-
361		-	(3) “TOTAL REPAYMENT AMOUN T” MEANS THE DISBURSEME NT 23
362		-	AMOUNT OF A SALES –BASED FINANCING TRAN SACTION PLUS THE FIN ANCE CHARGE . 24
363		-
364		-	(B) (1) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO 25
365		-	A RECIPIENT WHEN EXT ENDING A SPECIFIC OF FER OF SALES–BASED FINANCING : 26
366		-
367		-	(I) THE TOTAL AMOUNT OF T HE SALES–BASED FINANCING AND 27
368		-	THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 28
369		-	MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBURSE MENT; 29
370		-
371		-	(II) THE FINANCE CHARGE ; 30
372		-	SENATE BILL 825 9
373		-
374		-
375		-	(III) THE ESTIMATED ANNUAL PERCENTAGE RATE OF T HE 1
376		-	SALES–BASED FINANCING , USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 2
377		-	ABBREVIATION “APR”; 3
378		-
379		-	(IV) THE TOTAL REPAYMENT AMOUNT; 4
380		-
381		-	(V) THE ESTIMATED TERM OF REPAYMENT ; 5
382		-
383		-	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 6
384		-	PROJECTED PERIODIC P AYMENT AMOUNTS ; 7
385		-
386		-	(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 8
387		-	CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES, LATE 9
388		-	PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 10
389		-
390		-	(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 11
391		-	REQUIREMENTS OR SECU RITY INTERESTS. 12
392		-
393		-	(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 13
394		-	SHALL DISCLOSE : 14
395		-
396		-	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 15
397		-
398		-	2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 16
399		-	MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 17
400		-
401		-	(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 18
402		-	SHALL DISCLOSE : 19
403		-
404		-	1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 20
405		-	METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 21
406		-
407		-	2. THE AMOUNT OF THE AVE RAGE PROJECTED 22
408		-	PAYMENTS PER MONTH . 23
409		-
410		-	(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE SALES–BASED 24
411		-	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 25
412		-	PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 26
413		-	PAY: 27
414		-
415		-	(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 28
416		-	ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 29
417		-	10 SENATE BILL 825
418		-
419		-
420		-	(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 1
421		-	CHARGE. 2
422		-
423		-	(2) IF A RECIPIENT WOULD BE R EQUIRED TO PAY ADDIT IONAL 3
424		-	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 4
425		-	LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 5
426		-	PORTION OF THE FINAN CE CHARGE AND THE MA XIMUM DOLLAR AMOUNT THE 6
427		-	RECIPIENT COULD BE REQUIRED TO PAY. 7
428		-
429		-	12–1106. 12–1105. 8
430		-
431		-	(A) (1) A PROVIDER SHALL USE T HE PROJECTED SALES V OLUME OF A 9
432		-	RECIPIENT TO CALCULA TE THE FOLLOWING INF ORMATION RELATED TO A 10
433		-	SALES–BASED FINANCING TRAN SACTION: 11
434		-
435		-	(I) THE ESTIMATED TERM OF REPAYMENT AND THE 12
436		-	PROJECTED PAYMENT AM OUNTS OF A SALES–BASED FINANCING TRAN SACTION; AND 13
437		-
438		-	(II) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A 14
439		-	SALES–BASED FINANCING TRAN SACTION. 15
440		-
441		-	(2) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A SALES–BASED 16
442		-	FINANCING TRANSACTIO N SHALL BE CALCUL ATED: 17
443		-
444		-	(I) IN ACCORDANCE WITH TH E FEDERAL TRUTH IN LENDING 18
445		-	ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 19
446		-
447		-	(II) BASED ON THE ESTIMATE D TERM OF REPAYMENT AND 20
448		-	PROJECTED SALES VOLU ME OF A RECIPIENT . 21
449		-
450		-	(B) (1) A PROVIDER MAY CALCULA TE THE PROJECTED SAL ES VOLUME OF 22
451		-	A RECIPIENT USING EI THER THE HISTORICAL METHOD OR THE OPT –IN METHOD. 23
452		-
453		-	(2) (I) A PROVIDER THAT USES T HE HISTORICAL METHOD TO 24
454		-	CALCULATE THE PROJEC TED SALES VOLUME OF A RECIPIENT SHALL US E AN 25
455		-	AVERAGE HISTORICAL V OLUME OF SALES OR RE VENUE. 26
456		-
457		-	(II) A PROVIDER SHALL FIX T HE HISTORICAL TIME P ERIOD 27
458		-	USED TO CALCULATE TH E AVERAGE HISTORICAL VOLUME AND USE THE S AME TIME 28
459		-	PERIOD FOR ALL DISCL OSURE PURPOSES FOR A NY SALES–BASED FINANCING 29
460		-	TRANSACTION PRODUCTS OFFERED. 30
461		-
462		-	(III) EXCEPT AS PROVIDED IN SUBPARAGR APH (IV) OF THIS 31
463		-	PARAGRAPH , THE FIXED HISTORICAL TIME PERIOD: 32 SENATE BILL 825 11
	366	+	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 29
	367	+	PROJECTED PERIODIC P AYMENT AMOUNTS ; 30 SENATE BILL 825 9
464	368
465	369
466	370
467		-	1. MAY NOT BE LESS THAN 1 MONTH AND MAY NOT 1
468		-	EXCEED 12 MONTHS; AND 2
	371	+	(VII) A DESCRIPTION OF A NY OTHER POTENTIAL FEES AND 1
	372	+	CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 2
	373	+	PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 3
469	374
470		-	~~2. SHALL BE THE TIME PER IOD DIRECTLY BEFORE THE 3~~
471		-	~~SPECIFIC OFFER WAS M ADE~~. 4
	375	+	(VIII) IF APPLICABLE , A DESCRIPTION OF COLLA TERAL 4
	376	+	REQUIREMENTS OR SECU RITY INTERESTS. 5
472	377
473		-	(IV) A PROVIDER MAY CHOOSE TO USE THE AVERAGE SALES FOR 5
474		-	THE SAME NUMBER OF M ONTHS AS THE PROVIDE R WOULD HAVE USED UN DER 6
475		-	PARAGRAPH (3) OF THIS SUBSECTION W ITH THE HIGHEST SALE S VOLUME WITHIN 7
476		-	THE PAST 12 MONTHS. 8
	378	+	(2) (I) FOR PAYMENT AMOUNTS THAT ARE FIX ED, A PROVIDER 6
	379	+	SHALL DISCLOSE : 7
477	380
478		-	(3) A PROVIDER MAY USE THE OPT–IN METHOD TO DETERMI NE THE 9
479		-	INFORMATION LISTED U NDER SUBSECTION (A)(1) OF THIS SECTION BY U SING A 10
480		-	PROJECTED SALES VOLU ME THAT THE PROVIDER CHOOSES FOR EACH DIS CLOSURE 11
481		-	IF THE RECIPIENT PAR TICIPATES IN A REVIE W PROCESS ESTABLISHE D BY THE 12
482		-	COMMISSIONER . 13
	381	+	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 8
483	382
484		-	(C) A PROVIDER SHALL NOTIF Y THE COMMISSIONER WHICH OF THE TWO 14
485		-	METHODS THE PROVIDER INTENDS TO USE WHEN CALCULATING THE ESTI MATED 15
486		-	ANNUAL PERCENTAGE OF EACH SALES–BASED FINANCING TRAN SACTION. 16
	383	+	2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 9
	384	+	MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH. 10
487	385
488		-	(D) ~~(1) ON OR BEFORE JANUARY 1 EACH YEAR~~, A PROVIDER ~~SHALL 17~~
489		-	~~REPORT TO THE COMMISSIONER ON~~ : 18
	386	+	(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE, A PROVIDER 11
	387	+	SHALL DISCLOSE : 12
490	388
491		-	~~(I)~~ THE ~~ESTIMATED ANNUAL PERCENTAGE RATES GIV EN TO 19~~
492		-	~~EACH RECIPIENT~~ ; AND 20
	389	+	1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 13
	390	+	METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENTS; AND 14
493	391
494		-	~~(II)~~ THE ~~ACTUAL ANNUAL PER CENTAGE RATES~~ OF ~~EAC H 21~~
495		-	~~COMPLETED SALES –BASED~~ ~~FINANCING TRAN SACTION~~. 22
	392	+	2. THE AMOUNT OF THE AVE RAGE PROJECTED 15
	393	+	PAYMENTS PER MONTH . 16
496	394
497		-	(2) (I) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 23
498		-	SUBSECTION SHALL CON TAIN ANY INFORMATION THE COMMISSIONER CONSIDERS 24
499		-	NECESSARY TO DETERMI NE WHETHER THE DEVIA TION BETWEEN THE EST IMATED 25
500		-	ANNUAL PERCENTAGE RA TES AND ACTUAL ANNUA L PERCENTAGE RATES O F 26
501		-	COMPLETED SALES –BASED FINANCING TRAN SACTIONS IS REASONAB LE. 27
	395	+	(C) (1) IF A RECIPIENT PAYS OFF O R REFINANCES THE SAL ES–BASED 17
	396	+	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 18
	397	+	PROVIDER SHALL DISCL OSE WHETHER THE RECIPIEN T WOULD BE REQUIRED TO 19
	398	+	PAY: 20
502	399
503		-	(II) THE COMMISSIONER MAY CONS IDER EXTRAORDINARY 28
504		-	CIRCUMSTANCES WHEN D ETERMINING WHETHER T HE PROVIDER ’S DEVIATION 29
505		-	BETWEEN THE ESTIMATE D ANNUAL PERCENTAGE RATE AND ACTUAL ANNU AL 30
506		-	PERCENTAGE RATE OF A SALES–BASED FINANCING TRAN SACTION IS REASONABL E. 31
	400	+	(I) ANY FINANCE CHARGES OTHER THAN THE INTER EST 21
	401	+	ACCRUED SINCE THE RECIPIENT’S LAST PAYMENT ; AND 22
507	402
508		-	(~~III~~) IF THE ~~COMMISSIONER FINDS TH AT THERE WAS AN 32~~
509		-	~~UNREASONABLE DEVIATION BE TWEEN ESTIMATED AND ACTUAL ANNUAL 33 12 SENATE BILL 825~~
	403	+	(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 23
	404	+	CHARGE. 24
510	405
	406	+	(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY ADDITIONAL 25
	407	+	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 26
	408	+	LAST PAYMENT , A PROVIDER SHALL DI SCLOSE THE PERCENTAGE OF AN Y UNPAID 27
	409	+	PORTION OF THE FINAN CE CHARGE AND THE MAXIMUM DOLLAR AMOUN T THE 28
	410	+	RECIPIENT COULD BE R EQUIRED TO PAY . 29
511	411
512		-	PERCENTAGE RATES OF SALES–BASED FINANCING TRAN SACTIONS, THE 1
513		-	COMMISSIONER MAY REQU IRE THE PROVIDER TO USE THE HISTORICAL M ETHOD 2
514		-	INSTEAD OF THE OPT –IN METHOD IN DETERMI NING THE PROJECTED S ALES VOLUME 3
515		-	OF THE RECIPIENT. 4
516		-
517		-	12–1107. 12–1106. 5
518		-
519		-	(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 6
520		-	DISBURSEMENT AMOUNT OF A CLOSED–END FINANCING TRANSA CTION PLUS THE 7
521		-	FINANCE CHARGE . 8
522		-
523		-	(B) (1) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO 9
524		-	A RECIPIENT WHEN EXTENDING A SPECIFIC OFFER FOR CLOSED –END FINANCING : 10
525		-
526		-	(I) THE TOTAL AMOUNT OF T HE CLOSED–END FINANCING AND 11
527		-	THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 12
528		-	MINUS ANY FEES DEDUC TED OR WITHHELD AT D ISBURSEMENT ; 13
529		-
530		-	(II) THE TOTAL REPAYMENT AMOUNT; 14
531		-
532		-	(III) THE FINANCE CHARGE ; 15
533		-
534		-	(IV) THE ANNUAL PERCENTAGE RATE OF THE CLOSED –END 16
535		-	FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 17
536		-	ABBREVIATION “APR”; 18
537		-
538		-	(V) THE TERM OF THE FINAN CING; 19
539		-
540		-	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECT ION, THE 20
541		-	PROJECTED PERIODIC P AYMENT AMOUNTS ; 21
542		-
543		-	(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 22
544		-	CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 23
545		-	PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 24
546		-
547		-	(VIII) IF APPLICABLE , A DESCRIPTION OF COLLATERAL 25
548		-	REQUIREMENTS OR SECU RITY INTERESTS. 26
549		-
550		-	(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 27
551		-	SHALL DISCLOSE : 28
552		-
553		-	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 29
554		-	SENATE BILL 825 13
555		-
556		-
557		-	2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 1
558		-	MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYMENTS P ER MONTH. 2
559		-
560		-	(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 3
561		-	SHALL DISCLOSE : 4
562		-
563		-	1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 5
564		-	METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 6
565		-
566		-	2. THE AMOUNT OF THE AVE RAGE PROJECTED 7
567		-	PAYMENTS PER MONTH . 8
568		-
569		-	(3) THE ANNUAL PERCENTAGE RATE REQUIRED TO BE DISCLOSED 9
570		-	UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION S HALL BE: 10
571		-
572		-	(I) EXPRESSED AS A YEARLY RATE, INCLUSIVE OF ANY FEE S 11
573		-	AND FINANCE CHARGES THAT CANNOT BE AVOID ED BY A RECIPIENT; AND 12
574		-
575		-	(II) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH 13
576		-	IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22, REGARDLESS OF 14
577		-	WHETHER THE ACT OR REGULATION WOU LD REQUIRE THE CALCU LATION. 15
578		-
579		-	(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE CLOSED–END 16
580		-	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 17
581		-	PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 18
582		-	PAY: 19
583		-
584		-	(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 20
585		-	ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 21
586		-
587		-	(II) ANY ADDITIONAL FEES NOT I NCLUDED IN THE FINAN CE 22
588		-	CHARGE. 23
589		-
590		-	(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 24
591		-	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 25
592		-	LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 26
593		-	PORTION OF THE FINANCE CHARG E AND MAXIMUM DOLLAR AMOUNT THE 27
594		-	RECIPIENT COULD BE R EQUIRED TO PAY . 28
595		-
596		-	12–1108. 12–1107. 29
597		-
598		-	(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE DRAW 30
599		-	AMOUNT OF THE OPEN –END FINANCING TRANSA CTION, MINUS ANY FEES DEDUC TED 31
600		-	OR WITHHELD AT D ISBURSEMENT , PLUS THE FINANCE CHA RGE. 32 14 SENATE BILL 825
	412	+	12–1106. 30 10 SENATE BILL 825
601	413
602	414
603	415
604		-	(B) (1) WHEN CALCULATING THE TOTAL REPAYMENT AMOU NT IN 1
605		-	ACCORDANCE WITH THIS SECTION, A PROVIDER SHALL ASS UME A DRAW AMOUNT 2
606		-	EQUAL TO THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE TO THE RECIPI ENT IF 3
607		-	DRAWN AND HELD FOR T HE DURATION OF THE TERM O R DRAW PERIOD . 4
	416	+	(A) (1) A PROVIDER SHALL USE T HE PROJECTED SALES V OLUME OF A 1
	417	+	RECIPIENT TO CALCULA TE THE FOLLOWING INF ORMATION RELATED TO A 2
	418	+	SALES–BASED FINANCING TRAN SACTION: 3
608	419
609		-	(2) WHEN CALCULATING A FI NANCE CHARGE IN ACCO RDANCE WITH 5
610		-	THIS SECTION, A PROVIDER SHALL ASS UME THE MAXIMUM AMOU NT OF CREDIT 6
611		-	AVAILABLE TO THE REC IPIENT, IN EACH CASE , IS DRAWN AND HELD FO R THE 7
612		-	DURATION OF THE TERM OF THE DRAW PERIOD . 8
	420	+	(I) THE ESTIMATED TERM OF REPAYMENT AND THE 4
	421	+	PROJECTED PAYMENT AM OUNTS OF A SALES–BASED FINANCING TRAN SACTION; AND 5
613	422
614		-	(C) ~~(1)~~ A ~~PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO 9~~
615		-	~~A RECIPIENT WHEN EXT ENDING A SPECIFIC OF FER FOR OPEN~~–~~END~~ FINANCING ~~: 10~~
	423	+	(II) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A 6
	424	+	SALES–BASED FINANCING TRAN SACTION. 7
616	425
617		-	(I) THE MAXIMUM AMOUNT OF CREDIT AVAILABLE TO THE 11
618		-	RECIPIENT AND THE AM OUNT SCHEDULED TO BE DRAWN BY TH E RECIPIENT AT THE 12
619		-	TIME THE OFFER IS EX TENDED, IF ANY, MINUS ANY FEES DEDUC TED OR WITHHELD 13
620		-	AT DISBURSEMENT ; 14
	426	+	(2) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A SALES–BASED 8
	427	+	FINANCING TRANSACTIO N SHALL BE CALCULATE D: 9
621	428
622		-	(II) THE FINANCE CHARGE ; 15
	429	+	(I) IN ACCORDANCE WITH TH E FEDERAL TRUTH IN LENDING 10
	430	+	ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 11
623	431
624		-	(III) THE TOTAL REPAYMENT A MOUNT; 16
	432	+	(II) BASED ON THE ESTIMATE D TERM OF REPAYMENT AND 12
	433	+	PROJECTED SALES VOLU ME OF A RECIPIENT . 13
625	434
626		-	(IV) THE ANNUAL PERCENTAGE RATE OF THE COMMERCI AL 17
627		-	FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 18
628		-	ABBREVIATION “APR”; 19
	435	+	(B) (1) A PROVIDER MAY CALCULA TE THE PROJECTED SAL ES VOLUME OF 14
	436	+	A RECIPIENT USING EI THER THE HISTORICAL METHOD OR THE OPT –IN METHOD. 15
629	437
630		-	(V) THE TERM OF THE PLAN , IF APPLICABLE, OR THE PERIOD 20
631		-	OVER WHICH A DRAW IS AMORTIZED; 21
	438	+	(2) (I) A PROVIDER THAT USES T HE HISTORICAL METHOD TO 16
	439	+	CALCULATE THE PROJEC TED SALES VOLUME OF A RECIPIENT SHALL US E AN 17
	440	+	AVERAGE HISTORICAL V OLUME OF SALES OR RE VENUE. 18
632	441
633		-	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 22
634		-	PAYMENT FREQUENCY AN D AMOUNTS; 23
	442	+	(II) A PROVIDER SHALL FIX T HE HISTORICAL TIME P ERIOD 19
	443	+	USED TO CALCULATE THE AVE RAGE HISTORICAL VOLU ME AND USE THE SAME TIME 20
	444	+	PERIOD FOR ALL DISCL OSURE PURPOSES FOR A NY SALES–BASED FINANCING 21
	445	+	TRANSACTION PRODUCTS OFFERED. 22
635	446
636		-	(VII) A DESCRIPTION OF ANY OTHER POTENTI AL FEES AND 24
637		-	CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 25
638		-	PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 26
	447	+	(III) EXCEPT AS PROVIDED IN SUBPARAGRAPH (IV) OF THIS 23
	448	+	PARAGRAPH , THE FIXED HISTORICAL TIME PERIOD: 24
639	449
640		-	~~(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 27~~
641		-	~~REQUIREMENTS OR SECU RITY INTERESTS.~~ 28
	450	+	1. MAY NOT BE LESS THAN 1 MONTH AND MAY NOT 25
	451	+	EXCEED 12 MONTHS; AND 26
642	452
643		-	(2~~) (I) FOR PAYMENT AMOUNTS THAT ARE FIXED,~~ ~~A PROVIDER 29~~
644		-	~~SHALL DISCLOSE : 30~~
	453	+	2. SHALL BE THE TIME PER IOD DIRECTLY BEFORE THE 27
	454	+	SPECIFIC OFFER WAS M ADE. 28
645	455
646		-	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 31 SENATE BILL 825 15
	456	+	(IV) A PROVIDER MAY CHOOSE TO USE THE AVERAGE S ALES FOR 29
	457	+	THE SAME NUMBER OF M ONTHS AS THE PROVID ER WOULD HAVE USED U NDER 30 SENATE BILL 825 11
	458	+
	459	+
	460	+	PARAGRAPH (3) OF THIS SUBSECTION W ITH THE HIGHEST SALE S VOLUME WITHIN 1
	461	+	THE PAST 12 MONTHS. 2
	462	+
	463	+	(3) A PROVIDER MAY USE THE OPT–IN METHOD TO DETERMI NE THE 3
	464	+	INFORMATION LISTED U NDER SUBSECTION (A)(1) OF THIS SECTION BY U SING A 4
	465	+	PROJECTED SALES VOLUME THAT TH E PROVIDER CHOOSES F OR EACH DISCLOSURE 5
	466	+	IF THE RECIPIENT PAR TICIPATES IN A REVIE W PROCESS ESTABLISHE D BY THE 6
	467	+	COMMISSIONER . 7
	468	+
	469	+	(C) A PROVIDER SHALL NOTIFY THE COMMISSIONER WHICH OF THE TWO 8
	470	+	METHODS THE PROVIDER INTENDS TO USE WHEN CALCULATING THE ESTIMATED 9
	471	+	ANNUAL PERCENTAGE OF EACH SALES–BASED FINANCING TRAN SACTION. 10
	472	+
	473	+	(D) (1) ON OR BEFORE JANUARY 1 EACH YEAR, A PROVIDER SHALL 11
	474	+	REPORT TO THE COMMISSIONER ON : 12
	475	+
	476	+	(I) THE ESTIMATED ANNUAL PERCENTAGE RATES GIV EN TO 13
	477	+	EACH RECIPIENT ; AND 14
	478	+
	479	+	(II) THE ACTUAL ANNUAL PER CENTAGE RATES OF EAC H 15
	480	+	COMPLETED SALES –BASED FINANCING TRAN SACTION. 16
	481	+
	482	+	(2) (I) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 17
	483	+	SUBSECTION SHALL CON TAIN ANY INFORMATION THE COMMISSIONER CONSIDER S 18
	484	+	NECESSARY TO DETERMI NE WHETHER THE DEVIATION BETWEEN TH E ESTIMATED 19
	485	+	ANNUAL PERCENTAGE RA TES AND ACTUAL ANNUA L PERCENTAGE RATES O F 20
	486	+	COMPLETED SALES –BASED FINANCING TRAN SACTIONS IS REASONAB LE. 21
	487	+
	488	+	(II) THE COMMISSIONER MAY CONS IDER EXTRAORDINARY 22
	489	+	CIRCUMSTANCES WHEN D ETERMINING WHETHER T HE PROVID ER’S DEVIATION 23
	490	+	BETWEEN THE ESTIMATE D ANNUAL PERCENTAGE RATE AND ACTUAL ANNU AL 24
	491	+	PERCENTAGE RATE OF A SALES–BASED FINANCING TRAN SACTION IS REASONABL E. 25
	492	+
	493	+	(III) IF THE COMMISSIONER FINDS TH AT THERE WAS AN 26
	494	+	UNREASONABLE DEVIATI ON BETWEEN ESTIMATED AND ACTUAL AN NUAL 27
	495	+	PERCENTAGE RATES OF SALES–BASED FINANCING TRAN SACTIONS, THE 28
	496	+	COMMISSIONER MAY REQU IRE THE PROVIDER TO USE THE HISTORICAL M ETHOD 29
	497	+	INSTEAD OF THE OPT –IN METHOD IN DETERMI NING THE PROJECTED S ALES VOLUME 30
	498	+	OF THE RECIPIENT . 31
	499	+
	500	+	12–1107. 32
	501	+
	502	+	(A) IN THIS SECTION , “TOTAL REPAYMENT AMOUN T” MEANS THE 33 12 SENATE BILL 825
	503	+
	504	+
	505	+	DISBURSEMENT AMOUNT OF A CLOSED–END FINANCING TRANSA CTION PLUS THE 1
	506	+	FINANCE CHARGE . 2
	507	+
	508	+	(B) (1) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORMATION TO 3
	509	+	A RECIPIENT WHEN EXTENDING A SPECIFIC OFFER FOR CLOSED–END FINANCING : 4
	510	+
	511	+	(I) THE TOTAL AMOUNT OF T HE CLOSED–END FINANCING AND 5
	512	+	THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 6
	513	+	MINUS ANY FEES DEDUC TED OR WITHHELD AT D ISBURSEMENT ; 7
	514	+
	515	+	(II) THE TOTAL REPAYMENT A MOUNT; 8
	516	+
	517	+	(III) THE FINANCE CHARGE ; 9
	518	+
	519	+	(IV) THE ANNUA L PERCENTAGE RATE OF THE CLOSED–END 10
	520	+	FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 11
	521	+	ABBREVIATION “APR”; 12
	522	+
	523	+	(V) THE TERM OF THE FINAN CING; 13
	524	+
	525	+	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 14
	526	+	PROJECTED PERIODIC P AYMENT AMOUNTS ; 15
	527	+
	528	+	(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 16
	529	+	CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 17
	530	+	PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 18
	531	+
	532	+	(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 19
	533	+	REQUIREMENTS OR SECU RITY INTERESTS. 20
	534	+
	535	+	(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 21
	536	+	SHALL DISCLOSE : 22
	537	+
	538	+	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 23
	539	+
	540	+	2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 24
	541	+	MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 25
	542	+
	543	+	(II) FOR PAYMENT AMOUNTS THAT ARE VARIABLE , A PROVIDER 26
	544	+	SHALL DISCLOSE : 27
	545	+
	546	+	1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 28
	547	+	METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 29 SENATE BILL 825 13
647	548
648	549
649	550
650		-	2. IF THE ~~PAYMENT FREQUE NCY IS OTHER THAN~~ 1
651		-	~~MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS~~ PER MONTH . 2
	551	+	2. THE AMOUNT OF THE AVE RAGE PROJECTED 1
	552	+	PAYMENTS PER MONTH . 2
652	553
653		-	(II) ~~FOR PAYMENT AMOUNTS T HAT ARE VARIABLE,~~ ~~A PROVIDER~~ 3
654		-	SHALL ~~DISCLOSE~~ : 4
	554	+	(3) THE ANNUAL PERCENTAGE RATE REQU IRED TO BE DISCLOSED 3
	555	+	UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION SHALL BE: 4
655	556
656		-	~~1. THE PAYMENT SCHEDULE OR~~ A ~~DESCRIPTION~~ OF ~~THE~~ 5
657		-	~~METHOD USED TO CALCU LATE THE AMOUNTS~~ AND ~~FREQUENCY OF PAYMENT S~~; AND 6
	557	+	(I) EXPRESSED AS A YEARLY RATE, INCLUSIVE OF ANY FEE S 5
	558	+	AND FINANCE CHARGES THAT CANNOT BE AVOID ED BY A RECIPIENT ; AND 6
658	559
659		-	2. THE AMOUNT OF THE AVE RAGE PROJECTED 7
660		-	PAYMENTS PER MONTH . 8
	560	+	(II) CALCULATED IN ACCORDA NCE WITH TH E FEDERAL TRUTH 7
	561	+	IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22, REGARDLESS OF 8
	562	+	WHETHER THE ACT OR REGULATION WOU LD REQUIRE THE CALCU LATION. 9
661	563
662		-	(3) THE ANNUAL PERCENTAGE RATE REQU IRED TO BE DISCLOSED 9
663		-	UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION S HALL BE: 10
	564	+	(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE CLOSED–END 10
	565	+	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 11
	566	+	PROVIDER SHALL DISCL OSE WHETHER THE RECIPIEN T WOULD BE REQUIRED TO 12
	567	+	PAY: 13
664	568
665		-	(I) ~~EXPRESSED AS A NOMINA L YEARLY RATE , INCLUSIVE OF 11~~
666		-	~~ANY FEES~~ AND ~~FINANCE CHARGES THAT CANNOT BE AVOIDED BY A RECI PIENT; 12~~
	569	+	(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 14
	570	+	ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 15
667	571
668		-	(II) ~~CALCULATED~~ IN ~~ACCORDA NCE WITH~~ THE ~~FEDERAL TRUTH 13~~
669		-	~~IN LENDING ACT AND REGULATION Z, 12 C.F.R~~. ~~§ 1026.22; AND 14~~
	572	+	(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 16
	573	+	CHARGE. 17
670	574
671		-	(III) BASED ON THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE 15
672		-	TO THE RECIPIENT AND THE TERM RESULTING F ROM MAKING THE MINIM UM 16
673		-	REQUIRED PAYMENTS AS DISCLOSED, REGARDLESS OF WHETHE R THE ACT OR 17
674		-	REGULATION WOULD REQUIRE THE CA LCULATION. 18
	575	+	(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 18
	576	+	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 19
	577	+	LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 20
	578	+	PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 21
	579	+	RECIPIENT COULD BE REQ UIRED TO PAY. 22
675	580
676		-	(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE OPEN–END 19
677		-	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 20
678		-	PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 21
679		-	PAY: 22
	581	+	12–1108. 23
680	582
681		-	(I) ANY FINANCE CHARGES O THER THAN THE INTERES T 23
682		-	ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 24
	583	+	(A) IN THIS SECTIO N, “TOTAL REPAYMENT AMOU NT” MEANS THE DRAW 24
	584	+	AMOUNT OF THE OPEN–END FINANCING TRANSA CTION, MINUS ANY FEES DEDUC TED 25
	585	+	OR WITHHELD AT DISBU RSEMENT, PLUS THE FINANCE CHA RGE. 26
683	586
684		-	(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 25
685		-	CHARGE. 26
	587	+	(B) (1) WHEN CALCULATING THE TOTA L REPAYMENT AMOUNT I N 27
	588	+	ACCORDANCE WITH THIS SECTION, A PROVIDER SHALL ASS UME A DRAW AMOUNT 28
	589	+	EQUAL TO THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE TO THE RECIPI ENT IF 29
	590	+	DRAWN AND HELD FOR T HE DURATION OF THE T ERM OR DRAW PERIOD . 30
686	591
687		-	(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 27
688		-	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 28
689		-	LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 29
690		-	PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 30
691		-	RECIPIENT COULD BE R EQUIRED TO PAY . 31
	592	+	(2) WHEN CALCUL ATING A FINANCE CHAR GE IN ACCORDANCE WIT H 31 14 SENATE BILL 825
	593	+
	594	+
	595	+	THIS SECTION, A PROVIDER SHALL ASSUME THE MAXIMUM A MOUNT OF CREDIT 1
	596	+	AVAILABLE TO THE REC IPIENT, IN EACH CASE , IS DRAWN AND HELD FO R THE 2
	597	+	DURATION OF THE TERM OF THE DRAW PERIOD . 3
	598	+
	599	+	(C) (1) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORMATION TO 4
	600	+	A RECIPIENT WHEN EXTENDING A SPECIFIC OFFER FOR OPEN–END FINANCING : 5
	601	+
	602	+	(I) THE MAXIMUM AMOUNT OF CREDIT AVAILABLE TO THE 6
	603	+	RECIPIENT AND THE AM OUNT SCHEDULED TO BE DRAWN BY THE RECIPIENT AT THE 7
	604	+	TIME THE OFFER IS EX TENDED, IF ANY, MINUS ANY FEES DEDUCTED OR WITHHELD 8
	605	+	AT DISBURSEMENT ; 9
	606	+
	607	+	(II) THE FINANCE CHARGE ; 10
	608	+
	609	+	(III) THE TOTAL REPAYMENT A MOUNT; 11
	610	+
	611	+	(IV) THE ANNUAL PERCENTAGE RA TE OF THE COMMERCIAL 12
	612	+	FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 13
	613	+	ABBREVIATION “APR”; 14
	614	+
	615	+	(V) THE TERM OF THE PLAN , IF APPLICABLE, OR THE PERIOD 15
	616	+	OVER WHICH A DRAW IS AMORTIZED ; 16
	617	+
	618	+	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 17
	619	+	PAYMENT FREQUENCY AN D AMOUNTS; 18
	620	+
	621	+	(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 19
	622	+	CHARGES NOT INCLUDED IN THE FINANCE CHARGE , INCLUDING DRAW FEES , LATE 20
	623	+	PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 21
	624	+
	625	+	(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 22
	626	+	REQUIREMENTS OR SECU RITY INTERESTS. 23
	627	+
	628	+	(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 24
	629	+	SHALL DISCLOSE : 25
	630	+
	631	+	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 26
	632	+
	633	+	2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 27
	634	+	MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 28
	635	+
	636	+	(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 29
	637	+	SHALL DISCLOSE : 30 SENATE BILL 825 15
	638	+
	639	+
	640	+
	641	+	1. THE PAYMENT SC HEDULE OR A DESCRIPT ION OF THE 1
	642	+	METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 2
	643	+
	644	+	2. THE AMOUNT OF THE AVE RAGE PROJECTED 3
	645	+	PAYMENTS PER MONTH . 4
	646	+
	647	+	(3) THE ANNUAL PERCENTAGE RATE REQUIRED TO BE DISCLOSED 5
	648	+	UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION SHALL BE : 6
	649	+
	650	+	(I) EXPRESSED AS A NOMINA L YEARLY RATE , INCLUSIVE OF 7
	651	+	ANY FEES AND FINANCE CHARGES THAT CANNOT BE AVOIDED BY A RECI PIENT; 8
	652	+
	653	+	(II) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH 9
	654	+	IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 10
	655	+
	656	+	(III) BASED ON THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE 11
	657	+	TO THE RECIPIENT AND THE TERM RESULTING F ROM MAKING THE MINIM UM 12
	658	+	REQUIRED PAYMENTS AS DISCLOSED, REGARDLESS OF WHETHE R THE ACT OR 13
	659	+	REGULATION WOULD REQ UIRE THE CALCULATION . 14
	660	+
	661	+	(D) (1) IF A RECIPIEN T PAYS OFF OR REFINA NCES THE OPEN–END 15
	662	+	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 16
	663	+	PROVIDER SHALL DISCL OSE WHETHER THE RECIPIEN T WOULD BE REQUIRED TO 17
	664	+	PAY: 18
	665	+
	666	+	(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 19
	667	+	ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT; AND 20
	668	+
	669	+	(II) ANY ADDITIONAL FEES NOT INCLUDED IN THE FINA NCE 21
	670	+	CHARGE. 22
	671	+
	672	+	(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 23
	673	+	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 24
	674	+	LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 25
	675	+	PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 26
	676	+	RECIPIENT COULD BE REQUIRE D TO PAY. 27
	677	+
	678	+	12–1109. 28
	679	+
	680	+	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 29
	681	+	INDICATED. 30
692	682		16 SENATE BILL 825
693	683
694	684
695		-	12–1109. 12–1108. 1
	685	+	(2) “FINANCE CHARGE ” INCLUDES A DISCOUNT TAKEN ON THE FACE 1
	686	+	VALUE OF THE ACCOUNT S RECEIVABLE. 2
696	687
697		-	(A) ~~(1) IN THIS SECTION~~ THE ~~F OLLOWING WORDS HAVE THE MEANINGS 2~~
698		-	~~INDICATED~~. 3
	688	+	(3) “TOTAL PAYMENT AMOUNT ” MEANS THE PURCHASE A MOUNT OF 3
	689	+	THE FACTORING TRANSA CTION PLUS THE FINANCE CHA RGE. 4
699	690
700		-	(2) ~~“FINANCE CHARGE ” INCLUDES~~ A ~~DISCOUNT TAKEN ON~~ THE ~~FACE 4~~
701		-	~~VALUE OF THE ACCOUNT S RECEIVABLE.~~ 5
	691	+	(B) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORMATION TO A 5
	692	+	RECIPIENT WHEN EXTENDING A SPECIFIC OFFER FOR A FACTORIN G TRANSACTION : 6
702	693
703		-	(3) “TOTAL PAYMENT AMOUNT ” MEANS THE PURCHASE A MOUNT OF 6
704		-	THE FACTORING TRANSA CTION PLUS THE FINAN CE CHARGE. 7
	694	+	(1) THE AMOUNT OF THE RECEIVABLES P URCHASE PRICE PAID T O 7
	695	+	THE RECIPIENT AND, IF DIFFERENT FROM TH E PURCHASE PRICE , THE 8
	696	+	DISBURSEMENT AMOUNT AFTER ANY FEES DEDUC TED OR WITHHELD AT 9
	697	+	DISBURSEMENT ; 10
705	698
706		-	(B) A PROVIDER SHALL DISCL OSE THE FOLL OWING INFORMATION TO A 8
707		-	RECIPIENT WHEN EXTEN DING A SPECIFIC OFFE R FOR A FACTORING TR ANSACTION: 9
	699	+	(2) THE TOTAL PAYMENT AMO UNT; 11
708	700
709		-	(1) THE AMOUNT OF THE REC EIVABLES PURCHASE PR ICE PAID TO 10
710		-	THE RECIPIENT AND , IF DIFFERENT FROM TH E PURCHASE PRICE , THE 11
711		-	DISBURSEMENT AMOUNT AFTER ANY FEES DEDUC TED OR WITHHELD AT 12
712		-	DISBURSEMENT ; 13
	701	+	(3) THE FINANCE CHARGE ; 12
713	702
714		-	(2) THE TOTAL PAYMENT AMO UNT; 14
	703	+	(4) THE ANNUAL PE RCENTAGE RATE OF THE FACTORING 13
	704	+	TRANSACTION , USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 14
	705	+	ABBREVIATION “APR”, CALCULATED ACCORDING TO THE FEDERAL TRUTH IN 15
	706	+	LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE 16
	707	+	ADVANCE, SINGLE PAYMENT TRANS ACTION”; 17
715	708
716		-	(3) THE FINANCE CHARGE ; 15
	709	+	(5) A DESCRIPTION OF ANY OTHER POTENTIAL FEES AND CHARGES 18
	710	+	THAT CAN BE AVOIDED BY THE RECIP IENT; AND 19
717	711
718		-	(4) THE ANNUAL PERCENTAGE RATE OF THE FACTORIN G 16
719		-	TRANSACTION , USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 17
720		-	ABBREVIATION “APR”, CALCULATED ACCORDING TO THE FEDERAL TRUTH IN 18
721		-	LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE 19
722		-	ADVANCE, SINGLE PAYMENT TRANS ACTION”; 20
	712	+	(6) A DESCRIPTION OF THE R ECEIVABLES PURCHASED AND, IF 20
	713	+	APPLICABLE, ANY ADDITIONAL COLLATERAL REQUIREME NTS OR SECURITY 21
	714	+	INTERESTS. 22
723	715
724		-	(5) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND CHARGES 21
725		-	THAT CAN BE AVOIDED BY THE RECIPIENT ; AND 22
	716	+	(C) (1) FOR PURPOSES OF THIS SUB SECTION, ANNUAL PERCENTAGE 23
	717	+	RATE SHALL BE CALCULATED ACCORDING TO THE FEDERAL TRUTH IN LENDING 24
	718	+	ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE ADVANCE , 25
	719	+	SINGLE PAYMENT TRANS ACTION”, REGARDLESS OF WHETHE R FEDERAL LAW OR 26
	720	+	REGULATION WOULD REQ UIRE AN ANNUAL PERCE NTAGE RATE TO BE CAL CULATED 27
	721	+	FOR A CERTAIN TRANSACTION . 28
726	722
727		-	(6) A ~~DESCRIPTION OF THE RECEIVABLES PURC HASED AND , IF 23~~
728		-	~~APPLICABLE, ANY ADDITIONAL COLLA TERAL REQUIREMENTS~~ O ~~R SECURITY 24~~
729		-	~~INTERESTS. 25~~
	723	+	(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 29
	724	+	PROVIDER SHA LL USE THE FOLLOWING INFORMATION T O CALCULATE THE 30
	725	+	ESTIMATED ANNUAL PER CENTAGE RATE IN ACCORDANCE WITH T HIS SECTION: 31
730	726
731		-	(C) (1) FOR PURPOSES OF THIS SUBSECTION, ANNUAL PERCENTAGE 26
732		-	RATE SHALL BE CALCUL ATED ACCORDING TO TH E FEDERAL TRUTH IN LENDING 27
733		-	ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE ADVANCE , 28
734		-	SINGLE PAYMENT TRANS ACTION”, REGARDLESS OF WHETHE R FEDERAL LAW OR 29
735		-	REGULATION WOULD REQ UIRE AN ANNUAL PERCE NTAGE RATE TO BE CAL CULATED 30
736		-	FOR A CERTAIN TRANSA CTION. 31
737		-	SENATE BILL 825 17
738		-
739		-
740		-	(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 1
741		-	PROVIDER SHALL USE T HE FOLLOWING INFORMA TION TO CALCULATE TH E 2
742		-	ESTIMATED ANNUAL PER CENTAGE RATE IN ACCO RDANCE WITH THIS SEC TION: 3
743		-
744		-	1. THE PURCHASE AMOUNT I S THE FINANCING AMOU NT; 4
745		-
746		-	2. THE PAYMENT AMOUNT IS THE PURCHASE AMOUNT 5
747		-	MINUS THE FINANCE CHARGE ; AND 6
748		-
749		-	3. THE TERM OF THE FACTO RING TRANSACTION IS 7
750		-	DETERMINED BY THE PA YMENT DUE DATE OF TH E RECEIVABLES . 8
751		-
752		-	(II) A PROVIDER MAY ESTIMAT E THE TERM FOR A FAC TORING 9
753		-	TRANSACTION AS THE A VERAGE PAYMENT PERIO D, USING HISTORICAL DAT A OVER 10
754		-	A PERIOD NOT TO EXCE ED THE PREVIOUS 12 MONTHS, CONCERNING PAYMENT 11
755		-	INVOICES PAID BY THE PARTY OWING THE ACCO UNTS RECEIVABLE IN Q UESTION. 12
756		-
757		-	12–1110. 12–1109. 13
758		-
759		-	(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 14
760		-	DISBURSEMENT AMOUNT OF A COMMERCIAL FINA NCING TRANSACTION PLUS THE 15
761		-	FINANCE CHARGE . 16
762		-
763		-	(B) A PROVIDER MAY EXTEND A SPECIAL OFFER OF C OMMERCIAL 17
764		-	FINANCING THAT IS NO T AN OPEN–END FINANCING , CLOSED–END FINANCING , 18
765		-	SALES–BASED FINANCING , OR A FACTORING TRANS ACTION BUT OTHERWISE MEETS 19
766		-	THE DEFINITION OF CO MMERCIAL FINANCING U NDER THIS SUBTITLE . 20
767		-
768		-	(C) (1) IF A PROVIDER EXTENDS A SPECIAL OFFER THAT IS NOT AN 21
769		-	OPEN–END FINANCING , CLOSED–END FINANCING , SALES–BASED FINANCING , OR A 22
770		-	FACTORING TRANSACTIO N BUT OTHERWISE MEET S THE DEFINITION OF 23
771		-	COMMERCIAL FINANCING UNDER THIS SUBTITLE , THE PROVIDER SHALL D ISCLOSE: 24
772		-
773		-	(I) THE TOTAL AMOUNT OF T HE COMMERCIAL FINANC ING 25
774		-	INCLUDING THE DISBUR SEMENT AMOUNT , IF DIFFERENT FROM TH E FINANCING 26
775		-	AMOUNT, MINUS ANY FEES DEDUC TED OR WITHHELD AT D ISBURSEMENT ; 27
776		-
777		-	(II) THE TOTAL REPAYM ENT AMOUNT ; 28
778		-
779		-	(III) THE FINANCE CHARGE ; 29
780		-
781		-	(IV) THE ANNUAL PERCENTAGE RATE OF THE COMMERCI AL 30
782		-	FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 31
783		-	ABBREVIATION “APR”, EXPRESSED AS A YEARL Y RATE, INCLUSIVE OF ANY FEE S 32 18 SENATE BILL 825
784		-
785		-
786		-	AND FINANCE CHARGES , AND CALCULATED IN ACCORD ANCE WITH THE RELEVA NT 1
787		-	SECTIONS OF THE FEDE RAL TRUTH IN LENDING ACT, REGULATION Z, 12 C.F.R. § 2
788		-	1026.22 OR THIS ARTICLE, REGARDLESS OF WHETHE R THE ACT, THE REGULATION , 3
789		-	OR THIS ARTICLE WOUL D REQUIRE THE CALCUL ATION; 4
790		-
791		-	(V) THE TERM OF TH E COMMERCIAL FINANCI NG; 5
792		-
793		-	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 6
794		-	PAYMENT FREQUENCY AN D AMOUNTS; 7
795		-
796		-	(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 8
797		-	CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING LATE PAYME NT 9
798		-	FEES AND RETURNED PA YMENT FEES; AND 10
799		-
800		-	(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 11
801		-	REQUIREMENTS OR SECU RITY INTERESTS. 12
802		-
803		-	(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 13
804		-	SHALL DISCLOSE : 14
805		-
806		-	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 15
807		-
808		-	2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 16
809		-	MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 17
810		-
811		-	(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 18
812		-	SHALL DISCLOSE : 19
813		-
814		-	1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 20
815		-	METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENTS ; AND 21
816		-
817		-	2. THE AMOUNT OF THE AVE RAGE PROJECTED 22
818		-	PAYMENTS PER MONTH . 23
819		-
820		-	(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE COMMERCIAL 24
821		-	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 25
822		-	PROVIDER SHALL DISCL OSE WHETHER THE RECIPIENT WOULD BE R EQUIRED TO 26
823		-	PAY: 27
824		-
825		-	(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 28
826		-	ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 29
827		-
828		-	(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 30
829		-	CHARGE. 31 SENATE BILL 825 19
	727	+	1. THE PURCHASE AMOUNT I S THE FINANCING AMOU NT; 32 SENATE BILL 825 17
830	728
831	729
832	730
833		-	(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 1
834		-	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 2
835		-	LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 3
836		-	PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 4
837		-	RECIPIENT COULD BE R EQUIRED TO PAY . 5
	731	+	2. THE PAYMENT AMOUNT IS THE PURCHASE AMOUNT 1
	732	+	MINUS THE FINANCE CH ARGE; AND 2
838	733
839		-	12–1111. 12–1110. 6
	734	+	3. THE TERM OF THE FACTORING TRA NSACTION IS 3
	735	+	DETERMINED BY THE PAYMENT DUE D ATE OF THE RECEIVABL ES. 4
840	736
841		-	(A) A PROVIDER MAY ~~REQUIRE~~ A ~~RECIPIENT TO PAY O FF THE BALANCE OF 7~~
842		-	~~AN EXISTING COMMERCI AL FINANCING TRANSAC TION FROM~~ THE ~~SAME P ROVIDER 8~~
843		-	AS A ~~CONDITION OF OB TAINING A NEW OR REN EWAL COMMERCIAL FINA NCING 9~~
844		-	~~TRANSACTION~~ . 10
	737	+	(II) A PROVIDER MAY ESTIMATE THE TERM FO R A FACTORING 5
	738	+	TRANSACTION AS THE A VERAGE PAYMENT PERIO D, USING HISTORICAL DATA OVER 6
	739	+	A PERIOD NOT TO EXCE ED THE PREV IOUS 12 MONTHS, CONCERNING PAYMENT 7
	740	+	INVOICES PAID BY THE PARTY OWING THE ACCO UNTS RECEIVABLE IN Q UESTION. 8
845	741
846		-	(B) IF A PROVIDER REQUIRE S A RECIPIENT TO PAY OFF A COMMERC IAL 11
847		-	FINANCING TRANSACTIO N BEFORE OBTAINING A NEW OR RENEWAL COMME RCIAL 12
848		-	FINANCING TRANSACTIO N, THE PROVIDER SHALL D ISCLOSE: 13
	742	+	12–1110. 9
849	743
850		-	(1) THE ~~AMOUNT OF THE NEW OR RENEWAL COMMERCIA L FINANCING 14~~
851		-	~~THAT WILL BE USED TO PAY OFF~~ THE ~~PORTION OF THE EXISTING COMMERCIAL 15~~
852		-	~~FINANCING THAT CONSI STS OF ANY REQUIRED PREPAYMENT CHARGES ; AND 16~~
	744	+	(A) IN THIS SECTION , “TOTAL REPAYMENT AMOUNT ” MEANS THE 10
	745	+	DISBURSEMENT AMOUNT OF A COMMERCIAL FINA NCING TRANSACTION PLUS THE 11
	746	+	FINANCE CHARGE . 12
853	747
854		-	(2) ANY UNPAID INTEREST T HAT WAS NOT FORGIVEN AT THE TIME 17
855		-	THE NEW OR RENEWAL C OMMERCIAL FINANCING WAS ENTERED INTO . 18
	748	+	(B) A PROVIDER MAY EXTEND A SPECIAL OFFER OF C OMMERCIAL 13
	749	+	FINANCING THAT IS NOT AN OPEN –END FINANCING , CLOSED–END FINANCING , 14
	750	+	SALES–BASED FINANCING , OR A FACTORING TRANSACTIO N BUT OTHERWISE MEET S 15
	751	+	THE DEFINITION OF CO MMERCIAL FINANCING U NDER THIS SUBTITLE . 16
856	752
857		-	(C) (1) FOR FINANCING FOR WHI CH THE TOTAL REPAYME NT AMOUNT IS 19
858		-	CALCULATED AS A FIXE D AMOUNT, THE PREPAYMENT CHARG E IS EQUAL TO THE 20
859		-	ORIGINAL FINANCE CHA RGE MULTIPLIED BY TH E AMOUNT OF THE NEW OR 21
860		-	RENEWAL COMMERCIAL F INANCING USED TO PAY OFF THE EXISTING COM MERCIAL 22
861		-	FINANCING TRANSACTIO N AS A PERCENTAGE OF THE TOTAL REPAYMENT AMOUNT , 23
862		-	MINUS ANY PORTION OF THE TOTAL REPAYMENT AMOUNT FORGIVEN BY T HE 24
863		-	PROVIDER AT THE TIME OF PREPAYMENT . 25
	753	+	(C) (1) IF A PROVIDER EXTENDS A SPECIAL OF FER THAT IS NOT AN 17
	754	+	OPEN–END FINANCING , CLOSED–END FINANCING , SALES–BASED FINANCING , OR A 18
	755	+	FACTORING TRANSACTIO N BUT OTHERWISE MEET S THE DEFINITION OF 19
	756	+	COMMERCIAL FINANCING UNDER THIS SUBTITLE , THE PROVIDER SHALL DISCLOSE: 20
864	757
865		-	(2) IF THE ~~PREPAYMENT CHA RGE IS MORE THAN ZER O,~~ ~~THE 26~~
866		-	~~PROVIDER SHALL RECOR D~~ THE AMOUNT ~~AS THE ANSWER TO THE FOLLOW ING 27~~
867		-	~~QUESTION: 28~~
	758	+	(I) THE TOTAL AMOUNT OF T HE COMMERCIAL FINANC ING 21
	759	+	INCLUDING THE DISBURSEMENT AMOUNT, IF DIFFERENT FROM TH E FINANCING 22
	760	+	AMOUNT, MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBU RSEMENT; 23
868	761
869		-	“DOES THE NEW OR RENEWAL C OMMERCIAL FINANCING TRANSACTION INCLUDE 29
870		-	ANY AMOUNT THAT IS U SED TO PAY UNPAID FI NANCE CHARGE OR FEES , ALSO 30
871		-	KNOWN AS DOUBLE DIPP ING? YES, [ENTER AMOUNT ]”. 31
	762	+	(II) THE TOTAL REPAYMENT A MOUNT; 24
872	763
873		-	(D) IF THE DISBURSEMENT A MOUNT OF THE NEW OR RENEWAL 32
874		-	COMMERCIAL FINANCING TRANSACTION WILL BE REDUCED TO PAY DOWN ANY 33
875		-	UNPAID PORTION OF TH E OUTSTANDING BALANC E OF THE EXISTING CO MMERCIAL 34 20 SENATE BILL 825
	764	+	(III) THE FINANCE CHARGE ; 25
876	765
877		-
878		-	FINANCING, THE PROVIDER SHALL D ISCLOSE THE ACTUAL D OLLAR AMOUNT BY 1
879		-	WHICH THE DISBURSEMENT AMO UNT WILL BE REDUCED . 2
880		-
881		-	12–1112. 12–1111. 3
882		-
883		-	A RECIPIENT SHALL SIGN , MANUALLY OR ELECTRON ICALLY, EACH 4
884		-	APPLICABLE DISCLOSUR E REQUIRED UNDER THI S SUBTITLE BEFORE A PROVIDER 5
885		-	MAY ALLOW THE RECIPI ENT TO PROCEED WITH THE COMMERCIAL FINAN CING 6
886		-	APPLICATION. 7
887		-
888		-	12–1113. 12–1112. 8
889		-
890		-	(A) (1) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PREVENT A 9
891		-	PROVIDER FROM DISCLO SING ADDITIONAL INFO RMATION TO A RECIPIE NT 10
892		-	REGARDING A COMMERCI AL FINANCING TRANSAC TION. 11
893		-
894		-	(2) IF A PROVIDER PROVIDE S ADDITIONAL DISCLOS URES TO A 12
895		-	RECIPIENT OTHER THAN WHAT IS REQUIRED BY THIS SUBTITLE, THE ADDITIONAL 13
896		-	DISCLOSURE IS NOT CO NSIDERED A REQUIRED DISCLOSURE UNDER THI S SUBTITLE. 14
897		-
898		-	(B) (1) IF ADDITIONAL METRICS OF FINANCING COSTS A RE DISCLOSED 15
899		-	OR USED IN THE APPLI CATION PROCESS FOR C OMMERCIAL FINANCING , THE 16
900		-	ADDITIONAL METRICS M AY NOT BE PRESENTED AS A RATE IF THEY AR E NOT THE 17
901		-	ANNUAL INTEREST RATE OR THE ANNUAL PERCEN TAGE RATE. 18
902		-
903		-	(2) THE TERM “INTEREST”, WHEN USED TO DESCRIB E A PERCENTAGE 19
904		-	RATE, MAY BE USED ONLY TO DESCRIBE ANNUALIZED PERCENTAGE RATES , 20
905		-	INCLUDING THE ANNUAL INTEREST RATE . 21
906		-
907		-	(C) IF A PROVIDER STATES A RATE OF FINANCE CH ARGE OR A FINANCING 22
908		-	AMOUNT TO A RECIPIEN T DURING THE APPLICA TION PROCESS FOR COM MERCIAL 23
909		-	FINANCING, THE PROVIDER SHALL A LSO STATE THE RATE A S AN “ANNUAL 24
910		-	PERCENTAGE RATE”, USING THAT TERM OR T HE ABBREVIATION “APR”. 25
911		-
912		-	12–1114. 12–1113. 26
913		-
914		-	(A) TO CARRY OUT THIS SUB TITLE, THE COMMISSIONER SHALL AD OPT 27
915		-	REGULATIONS SUBSTANT IALLY THE SAME AS RE GULATIONS ADOPTED BY THE NEW 28
916		-	YORK STATE DEPARTMENT OF FINANCIAL SERVICES REGARD ING COMMERCIAL 29
917		-	FINANCING. 30
918		-
919		-	(B) THE COMMISSIONER SHALL AP PROVE THE USE OF COM MERCIAL 31
920		-	FINANCING DISCLOSURE FORMS APPROVED FOR U SE IN OTHER STATES W ITH 32 SENATE BILL 825 21
921		-
922		-
923		-	COMMERCIAL FINANCING DISCLOSURE REQUIREME NTS THAT ARE SUBSTAN TIALLY 1
924		-	SIMILAR TO OR EXCEED THE REQUIREMENTS OF THIS SUBTITLE. 2
925		-
926		-	12–1115. 12–1114. 3
927		-
928		-	(A) A VIOLATION OF THIS SU BTITLE IS AN UNFAIR , ABUSIVE, OR DECEPTIVE 4
929		-	TRADE PRACTICE WITHI N THE MEANING OF TITLE 13 OF THE COMMERCIAL LAW 5
930		-	ARTICLE AND IS SUBJEC T TO THE ENFORCEMENT AND PENALTY PROVISIO NS 6
931		-	CONTAINED IN TITLE 13 OF THE COMMERCIAL LAW ARTICLE. 7
932		-
933		-	(B) (A) (1) THE COMMISSIONER SHALL IM POSE A CIVIL PENALTY , NOT 8
934		-	EXCEEDING: 9
935		-
936		-	(I) $2,000, FOR EACH VIOLATION O F THIS SUBTITLE; AND 10
937		-
938		-	(II) $10,000, FOR EACH WILLFUL VIO LATION OF THIS SUBTI TLE. 11
939		-
940		-	(2) THE COMMISSIONER MAY ORDE R ADDITIONAL RELIEF , 12
941		-	INCLUDING RESTITUTIO N OR A PERMANENT OR PRELIMINARY INJUNCTI ON ON 13
942		-	BEHALF OF A RECIPIEN T AFFECTED BY A VIOL ATION OF THIS SUBTIT LE. 14
943		-
944		-	(C) (B) IF A COMPLAINT ABOUT A VIOLATION OF THIS SUBTITLE IS FILED 15
945		-	WITH THE COMMISSIONER, THE COMMISSIONER MAY INVE STIGATE THE COMPLAIN T 16
946		-	AND USE ANY OF THE I NVESTIGATIVE AND ENF ORCEMENT POWERS PROV IDED 17
947		-	UNDER TITLE 2, SUBTITLE 1 OF THIS ARTICLE. 18
948		-
949		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
950		-	October 1, 2022. 20
	766	+	(IV) THE ANNUAL PERCENTAGE RA TE OF THE COMMERCIAL 26
	767	+	FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 27
	768	+	ABBREVIATION “APR”, EXPRESSED AS A YEARL Y RATE, INCLUSIVE OF ANY FEE S 28
	769	+	AND FINANCE CHARGES , AND CALCULATED IN AC CORDANCE WITH THE RE LEVANT 29
	770	+	SECTIONS OF THE FEDE RAL TRUTH IN LENDING ACT, REGULATION Z, 12 C.F.R. § 30
	771	+	1026.22 OR THIS ARTICLE, REGARDLESS OF WHETHE R THE ACT, THE REGULATION , 31
	772	+	OR THIS ARTICLE WOULD REQUIRE THE CA LCULATION; 32 18 SENATE BILL 825
951	773
952	774
953	775
	776	+	(V) THE TERM OF THE COMMERCIAL FINANCING; 1
954	777
955		-	Approved:
956		-	________________________________________________________________________________
957		-	Governor.
958		-	________________________________________________________________________________
959		-	President of the Senate.
960		-	________________________________________________________________________________
961		-	Speaker of the House of Delegates.
	778	+	(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 2
	779	+	PAYMENT FREQUENCY AN D AMOUNTS; 3
	780	+
	781	+	(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 4
	782	+	CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING LATE PAYME NT 5
	783	+	FEES AND RETURNED PA YMENT FEES; AND 6
	784	+
	785	+	(VIII) IF APPLICABLE , A DESCRIPTION OF COLLA TERAL 7
	786	+	REQUIREMENTS OR SECU RITY INTERESTS. 8
	787	+
	788	+	(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 9
	789	+	SHALL DISCLOSE : 10
	790	+
	791	+	1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 11
	792	+
	793	+	2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 12
	794	+	MONTHLY, THE AMOUNT OF TH E AVERAGE PROJECTED PAYMENTS PER MONTH . 13
	795	+
	796	+	(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 14
	797	+	SHALL DISCLOSE : 15
	798	+
	799	+	1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 16
	800	+	METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 17
	801	+
	802	+	2. THE AMOUNT O F THE AVERAGE PROJEC TED 18
	803	+	PAYMENTS PER MONTH . 19
	804	+
	805	+	(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE COMMERCIAL 20
	806	+	FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 21
	807	+	PROVIDER SHALL DISCL OSE WHETHER THE RECIPIEN T WOULD BE REQUIRED TO 22
	808	+	PAY: 23
	809	+
	810	+	(I) ANY FINANCE CHARGES OTHE R THAN THE INTEREST 24
	811	+	ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 25
	812	+
	813	+	(II) ANY ADDITIONAL FEES NOT INCLUDED IN THE FINA NCE 26
	814	+	CHARGE. 27
	815	+
	816	+	(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 28
	817	+	FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 29 SENATE BILL 825 19
	818	+
	819	+
	820	+	LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 1
	821	+	PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 2
	822	+	RECIPIENT COULD BE R EQUIRED TO PAY . 3
	823	+
	824	+	12–1111. 4
	825	+
	826	+	(A) A PROVIDER MAY REQUIRE A RECIPIENT TO PAY O FF THE BALANCE OF 5
	827	+	AN EXISTING COMMERCI AL FINANCING TRANSAC TION FROM THE SAME P ROVIDER 6
	828	+	AS A CONDITION OF OB TAINING A NEW OR RENEWAL COMMERCIAL FINANCING 7
	829	+	TRANSACTION . 8
	830	+
	831	+	(B) IF A PROVIDER REQUIRES A RECIPIENT TO PAY OFF A COMMERCIAL 9
	832	+	FINANCING TRANSACTIO N BEFORE OBTAINING A NEW OR RENEWAL COMMERCIAL 10
	833	+	FINANCING TRANSACTIO N, THE PROVIDER SHALL DISCLOSE : 11
	834	+
	835	+	(1) THE AMOUNT OF THE NEW OR RENEWAL COMMERCIAL FINANCING 12
	836	+	THAT WILL BE USED TO PAY OFF THE PORTION OF THE EXISTING COMMERCIAL 13
	837	+	FINANCING THAT CONSI STS OF ANY REQUI RED PREPAYMENT CHARG ES; AND 14
	838	+
	839	+	(2) ANY UNPAID INTEREST T HAT WAS NOT FORGIVEN AT THE TIME 15
	840	+	THE NEW OR RENEWAL COMMERCIAL FINANCING WAS ENTERED INTO . 16
	841	+
	842	+	(C) (1) FOR FINANCING FOR WHI CH THE TOTAL REPAYME NT AMOUNT IS 17
	843	+	CALCULATED AS A FIXE D AMOUNT, THE PREPAYMENT CHARGE IS EQUAL TO T HE 18
	844	+	ORIGINAL FINANCE CHA RGE MULTIPLIED BY TH E AMOUNT OF THE NEW OR 19
	845	+	RENEWAL COMMERCIAL FINANCING USED TO PA Y OFF THE EXISTING COMMERCIAL 20
	846	+	FINANCING TRANSACTIO N AS A PERCENTAGE OF THE TOTAL REPAYMENT AMOUNT, 21
	847	+	MINUS ANY PORTION OF THE TOTAL R EPAYMENT AMOUNT FORG IVEN BY THE 22
	848	+	PROVIDER AT THE TIME OF PREPA YMENT. 23
	849	+
	850	+	(2) IF THE PREPAYMENT CHA RGE IS MORE THAN ZER O, THE 24
	851	+	PROVIDER SHALL RECORD THE AMO UNT AS THE ANSWER TO THE FOLLOWING 25
	852	+	QUESTION: 26
	853	+
	854	+	“DOES THE NEW OR RENEWAL COMMERCIAL FINANCING TRANSACTIO N INCLUDE 27
	855	+	ANY AMOUNT THAT IS U SED TO PAY UNPAID FI NANCE CHARGE OR FEES , ALSO 28
	856	+	KNOWN AS DOUBLE DIPP ING? YES, [ENTER AMOUNT ]”. 29
	857	+
	858	+	(D) IF THE DISBURSEMENT A MOUNT OF THE NEW OR RENEWAL 30
	859	+	COMMERCIAL FINANCING TRANSACTIO N WILL BE REDUCED TO PAY DOWN ANY 31
	860	+	UNPAID PORTION OF TH E OUTSTANDING BALANC E OF THE EXISTING COMMERCIAL 32
	861	+	FINANCING, THE PROVIDER SHALL DISCL OSE THE ACTUAL DOLLAR AMOUNT BY 33
	862	+	WHICH THE DISBURSEME NT AMOUNT WILL BE RE DUCED. 34 20 SENATE BILL 825
	863	+
	864	+
	865	+
	866	+	12–1112. 1
	867	+
	868	+	A RECIPIENT SHALL SIGN , MANUALLY OR ELECTRON ICALLY, EACH 2
	869	+	APPLICABLE DISCLOSURE REQUIRED UNDER THIS SUBTITLE BEFORE A PROVIDER 3
	870	+	MAY ALLOW THE RECIPIENT TO PROCEED WITH THE COMMERCIAL FINANCING 4
	871	+	APPLICATION. 5
	872	+
	873	+	12–1113. 6
	874	+
	875	+	(A) (1) NOTHING IN THIS SUBTITLE MAY BE CONS TRUED TO PREVENT A 7
	876	+	PROVIDER FROM DISCLO SING ADDITIONAL INFORMATI ON TO A RECIPIENT 8
	877	+	REGARDING A COMMERCIAL FINANCING TRANSACTION . 9
	878	+
	879	+	(2) IF A PROVIDER PROVIDE S ADDITIONAL DISCLOSUR ES TO A 10
	880	+	RECIPIENT OTHER THAN WHAT IS REQUIRED BY THIS SUBTITLE, THE ADDITIONAL 11
	881	+	DISCLOSURE IS NOT CO NSIDERED A REQUIRED DISCLOSURE UNDER THI S SUBTITLE. 12
	882	+
	883	+	(B) (1) IF ADDITIONAL METRICS OF FINANCING COSTS ARE DISCLOSED 13
	884	+	OR USED IN THE APPLI CATION PROCESS FOR COMMERCIAL FINANCING, THE 14
	885	+	ADDITIONAL METRICS MAY NOT BE PRESENTED AS A RATE IF THEY ARE NOT THE 15
	886	+	ANNUAL INTEREST RATE OR THE ANNUAL PERCENTAG E RATE. 16
	887	+
	888	+	(2) THE TERM “INTEREST”, WHEN USED TO DESCRIB E A PERCENTAGE 17
	889	+	RATE, MAY BE USED ONLY TO DESCRIBE ANNUALIZ ED PERCENTAGE RATES , 18
	890	+	INCLUDING THE ANNUAL INTEREST RATE. 19
	891	+
	892	+	(C) IF A PROVIDER STATES A RATE OF FINANCE CHAR GE OR A FINANCING 20
	893	+	AMOUNT TO A RECIPIEN T DURING THE APPLICATION PROCESS FOR COMMERCIAL 21
	894	+	FINANCING, THE PROVIDER SHALL A LSO STATE THE RATE A S AN “ANNUAL 22
	895	+	PERCENTAGE RATE ”, USING THAT TERM OR T HE ABBREVIATION “APR”. 23
	896	+
	897	+	12–1114. 24
	898	+
	899	+	TO CARRY OUT THIS SUB TITLE, THE COMMISSIONER SHALL AD OPT 25
	900	+	REGULATIONS SUBSTANT IALLY THE SAME AS REGULATIONS ADOPTED BY THE NEW 26
	901	+	YORK STATE DEPARTMENT OF FINANCIAL SERVICES REGARDING CO MMERCIAL 27
	902	+	FINANCING. 28
	903	+
	904	+	12–1115. 29
	905	+
	906	+	(A) A VIOLATION OF THIS SU BTITLE IS AN UNFAIR, ABUSIVE, OR DECEPTIVE 30
	907	+	TRADE PRACTICE WITHI N THE MEANING OF TITLE 13 OF THE COMMERCIAL LAW 31 SENATE BILL 825 21
	908	+
	909	+
	910	+	ARTICLE AND IS SUBJECT TO TH E ENFORCEMENT AND PE NALTY PROVISIONS 1
	911	+	CONTAINED IN TITLE 13 OF THE COMMERCIAL LAW ARTICLE. 2
	912	+
	913	+	(B) (1) THE COMMISSIONER SHALL IMPOSE A CIVIL PENAL TY, NOT 3
	914	+	EXCEEDING: 4
	915	+
	916	+	(I) $ 2,000, FOR EACH VIOLATION O F THIS SUBTITLE; AND 5
	917	+
	918	+	(II) $10,000, FOR EACH WILLFUL VIO LATION OF THIS SUBTI TLE. 6
	919	+
	920	+	(2) THE COMMISSIONER MAY ORDE R ADDITIONAL RELIEF , 7
	921	+	INCLUDING RESTITUTIO N OR A PERMANENT OR PRELIMINARY INJUNCTI ON ON 8
	922	+	BEHALF OF A RECIPIEN T AFFECTED BY A VIOLATION OF THIS SUBTITLE. 9
	923	+
	924	+	(C) IF A COMPLAINT ABOUT A VIOLATION OF THIS SUBTITLE IS FILED WI TH 10
	925	+	THE COMMISSIONER, THE COMMISSIONER MAY INVE STIGATE THE COMPLAIN T AND 11
	926	+	USE ANY OF THE INVES TIGATIVE AND ENFORCE MENT POWERS PROVIDED UNDER 12
	927	+	TITLE 2, SUBTITLE 1 OF THIS ARTICLE. 13
	928	+
	929	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
	930	+	October 1, 2022. 15