SB 963
Creates new provisions requiring the disclosure of information pertaining to certain commercial financing products
Sponsor:
LR Number:
4402S.03C
Last Action:
5/11/2022 - Formal Calendar S Bills for Perfection
Journal Page:
Title:
SCS SB 963
Calendar Position:
16
Effective Date:
August 28, 2022

Current Bill Summary

SCS/SB 963 - This act creates the "Commercial Financing Disclosure Act". Under this act, any person who consummates more than 5 commercial financing products, as defined in the act, to a business located in this state in a calendar year is required to make certain disclosures to the business with regard to the product. Specifically, the provider is required to disclose the following:

· The total amount of funds provided to the business under the terms of the commercial financing product;

· The total amount of funds disbursed to the business under the terms of the commercial financing product, if less than the total amount of funds provided, as a result of any fees deducted or withheld at disbursement and any amount paid to a third party on behalf of the business;

· The total amount to be paid to the provider pursuant to the commercial financing product agreement;

· The total dollar cost of the commercial financing product under the terms of the agreement, derived by subtracting the total amount of funds provided from the total of payments;

· The manner, frequency and amount of each payment;

· A statement of whether there are any costs or discounts associated with prepayment of the commercial financing product including a reference to the paragraph in the agreement that creates the contractual rights of the parties related to prepayment;

· A statement of whether the provider will pay compensation directly to a broker in connection with the commercial financing product and the amount of compensation.

Violations of this act are punishable by a fine of $500 per incident, not to exceed $20,000 for all aggregated violations. Any person who violates any provision of this act after receiving written notice of a prior violation from the Attorney General shall be punishable by a fine of $1,000 per incident, not to exceed $50,000 for all aggregated violations arising from the use of the transaction documentation or materials found to be in violation of this act.

Violation of any provision of this act does not affect the enforceability or validity of the underlying agreement.

This act does not create a private cause of action against any person or entity based upon noncompliance with this act.

The Attorney General is given authority to enforce the provisions of this act.

This act contains various exemptions.

SCOTT SVAGERA

Amendments

No Amendments Found.