Writing for the New York Law Journal, Carter Ledyard’s Jacob H. Nemon considers how New York’s appellate departments examine Revenue Purchase Agreements (RPAs). Since the 2018 Champion Auto decision, RPA litigation in New York has grown, with courts applying different tests to distinguish RPAs from loans. The Second and Fourth Departments use a three-factor test—reconciliation, finite term, and recourse—while the First Department reviews cases individually. Future rulings are expected as courts continue to refine these standards.
