Bill > S1397

This bill requires providers of commercial financing, which includes various types of loans and financing arrangements not intended for personal, family, or household use, to provide specific disclosures to recipients at the time of offering a financing deal. These disclosures aim to ensure transparency by detailing the total amount of financing, the finance charge (the cost of the financing), the annual percentage rate (APR) or estimated APR, the total repayment amount, payment schedules, and any other potential fees or charges. For sales-based financing, which is repaid as a percentage of sales, the bill outlines methods for estimating the APR based on historical or projected sales volumes, with provisions for the Commissioner of Banking and Insurance to oversee these calculations and potentially require adjustments. Brokers who arrange commercial financing must also provide separate disclosures to recipients about their fees. The bill also includes provisions for correcting disclosure errors, outlines penalties for violations, and specifies certain exemptions, such as for financial institutions, transactions over $500,000, and leases as defined by law.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/S1397