STATE OF NEW YORK
________________________________________________________________________
3637
2019-2020 Regular Sessions
IN ASSEMBLY
January 30, 2019
___________
Introduced by M. of A. NIOU, PEOPLES-STOKES -- read once and referred to
the Committee on Banks
AN ACT to amend the banking law, in relation to asset-based lending
transactions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 340-a to
2 read as follows:
3 § 340-a. Asset-based lending transactions. 1. As used in this section
4 the term "asset-based lending transaction" shall mean a transaction in
5 which advances are made which are contingent on the recipient forwarding
6 payments received from one or more third parties for goods such recipi-
7 ent has supplied or services such recipient has rendered to that third
8 party or parties.
9 2. All asset-based lending transactions shall be deemed to be loans
10 for all purposes.
11 § 2. This act shall take effect on the ninetieth day after it shall
12 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03355-01-9
