Bill > A04810

This bill amends the financial services law by adding a new section that protects commercial financing providers from legal liability when the actual annual percentage rate (APR) they charge differs from their initially estimated APR, provided that the provider acted in good faith and followed applicable department rules and regulations. In the context of commercial financing, lenders often provide borrowers with an estimated interest rate when initially discussing a loan, but the final rate may vary slightly due to factors like precise risk assessment or market conditions. This bill essentially creates a safe harbor for providers, ensuring they won't face legal consequences for minor discrepancies between estimated and actual rates, as long as their initial estimate was made honestly and in compliance with established guidelines. The provision aims to provide more flexibility for commercial lenders while still maintaining a framework of transparency and good-faith dealing in financial transactions.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A4810