California Finance Code Sec. 22780.1, is now amended to require certain financing disclosures in commercial finance transactions. The new disclosures will require statutory disclosure(s) conspicuously providing:
The total amount of funds provided;
The total dollar cost of financing;
The term or estimated term;
The method, frequency, and amount of payments;
A description of prepayment policies; and,
Until January 1, 2024, the total cost of the financing expressed as an annualized rate.
The form of the disclosures for compliance purposes is subject to the Commissioner’s final regulations becoming effective upon the conclusion of the invitation for comment. https://dbo.ca.gov/california-financing-law-commercial-financing-disclosures/
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