Bill > S04607

This bill amends the New York banking law to define and regulate asset-based lending transactions. Specifically, the bill defines an asset-based lending transaction as a financial arrangement where a lender provides advances to a recipient, with the condition that the recipient will forward payments received from third parties for goods or services they have supplied. The key provision of the bill is that all such asset-based lending transactions will now be legally considered loans for all purposes, which likely means they will be subject to the same regulatory oversight, consumer protections, and legal standards as traditional loans. This classification could potentially provide greater transparency and protection for businesses engaging in these types of financial transactions. The bill will take effect 90 days after becoming law, giving businesses and financial institutions time to adapt to the new regulatory framework.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S4607