Bill Text: NY S03850 | 2019-2020 | General Assembly | Introduced

Bill Title: Deems asset-based lending transactions to be loans for all purposes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-02-20 - REFERRED TO BANKS [S03850 Detail]

Download: New_York-2019-S03850-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 20, 2019
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks
        AN ACT to amend the banking law,  in  relation  to  asset-based  lending
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The banking law is amended by adding a new section 340-a to
     2  read as follows:
     3    § 340-a. Asset-based lending transactions. 1. As used in this  section
     4  the  term  "asset-based lending transaction" shall mean a transaction in
     5  which advances are made which are contingent on the recipient forwarding
     6  payments received from one or more third parties for goods such  recipi-
     7  ent  has  supplied or services such recipient has rendered to that third
     8  party or parties.
     9    2. All asset-based lending transactions shall be deemed  to  be  loans
    10  for all purposes.
    11    §  2.  This  act shall take effect on the ninetieth day after it shall
    12  have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.