Bill Text: NY A03637 | 2019-2020 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced) 2019-01-30 - referred to banks [A03637 Detail]

Download: New_York-2019-A03637-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 30, 2019
        Introduced by M. of A. NIOU, PEOPLES-STOKES -- read once and referred 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.