Proposed N.Y. Budget Legislation Would Regulate Fintech Lending Market

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Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
New York Governor Andrew Cuomo proposed budget legislation that would amend the New York Licensed Lenders Law and give the Department of Financial Services increased authority...
United States Finance and Banking

New York Governor Andrew Cuomo proposed budget legislation that would amend the New York Licensed Lenders Law and give the Department of Financial Services increased authority over the licensing of certain entities. The proposed legislation would amend Section 340 to require the licensing of any entity that markets (but does not originate) loans to New York residents if that same entity, in connection with such solicitation, also "purchases or otherwise acquires from others loans or other forms of financing, or arranges or facilitates the funding of loans." Under the current Licensed Lender Law, only those entities that actually "make" loans are subject to licensing. If adopted, the proposed amendment would become effective in January 2018.

In a related memorandum, Cadwalader attorneys Joseph Beach, Scott Cmmarn and Scott Cogar discussed the new proposal.

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