Banking Interpretations

General Obligations Law 5-531

October 25, 2004 11:23 AM

Steven Barras/legal/NYSBD
To[                       ]
Subject Re: Fw: regulations on business loan brokering

There is nothing in the New York Banking Law or Banking Department Regulations that governs "business loan brokers". You indicate that your question only relates to the brokering of non-mortgage loans for businesses. I direct your attention to the provisions of Section 5-531 of the New York General Obligations Law, which sets the maximum fees on certain loan brokerage activities. The Banking Department claims  no special expertise in interpreting the provisions of that section.

Sara Kelsey

Date: October 18, 2004 5:01 PM

Sara Kelsey 
To: [email protected]

Subject: Fw: regulations on business loan brokering

Please respond.

Date: October 18, 2004 4:15 PM

To: [email protected]

Subject: regulations on business loan brokering

Please respond to [             ]

Ms. Kelsey,

I am trying to find out what laws or regulations that New York State may have governing business loan brokers. I know that there is a lot of regulations surrounding mortgages, but I am specifically interested in non-mortgage loans and for businesses only. I am interested in knowing if there would be any applicable licensing requirements, or any relevant regulations surrounding fees, points or any other compensation issues.

Thanks for your response.