Exemption For Fellow Car Dealerships

S.B. 898 explains that a car dealer is exempt from the disclosure requirements of SB 5740 provided the recipient of the financing is also a car dealer or a car rental company and where their dealings lead to a transaction that exceeds $50,000.00.



https://grantphillipslaw.com/n....ew-york-mca-laws-upd

Exemption For Fellow Car Dealerships

S.B. 898 explains that a car dealer is exempt from the disclosure requirements of SB 5740 provided the recipient of the financing is also a car dealer or a car rental company and where their dealings lead to a transaction that exceeds $50,000.00.



https://grantphillipslaw.com/n....ew-york-mca-laws-upd

New York MCA Laws Updated

New York law SB 5740 is designed to create transparency around loans originated in the State of New York and provided to small businesses via unconventional non-bank lenders, SB 5740 passed in December of 2020.



https://grantphillipslaw.com/n....ew-york-mca-laws-upd

Compliance with SB 5740 Does Not Cure Usury

SB 898 continues its explanation of SB 5740 stating categorically that mere compliance with SB 5740 will not cure a breach of New York Usury Laws. Thus, a breach of usury remains usurious and compliance with SB 5740 will not cure such usury.




https://grantphillipslaw.com/n....ew-york-mca-laws-upd

Finance Charge Calculation

The final rules provide that the finance charge on a transaction should be calculated and disclosed. This means the fees that the Merchant Cash Advance Funder usually charges for underwriting and origination.



https://grantphillipslaw.com/n....ew-york-mca-final-di