New York S04607 amends the banking law to classify asset-based lending transactions as loans.

New York S04607 amends the banking law by adding a new section 340-a, which defines "asset-based lending transaction" as a transaction where advances are contingent on the recipient forwarding payments from third parties for goods or services supplied. This bill classifies such transactions as loans for all purposes, affecting financial institutions and businesses engaged in these types of transactions. The act will take effect 90 days after it becomes law.

New York S04607 amends the banking law to classify asset-based lending transactions as loans.

New York S04607 amends the banking law by adding a new section 340-a, which defines "asset-based lending transaction" as a transaction where advances are contingent on the recipient forwarding payments from third parties for goods or services supplied. This bill classifies such transactions as loans for all purposes, affecting financial institutions and businesses engaged in these types of transactions. The act will take effect 90 days after it becomes law.