reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.113.4 - Release of Impounds

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Commissioner will authorize the depositary to release to
				  the franchiser such amounts of the impounded funds applicable to a specified
				  franchisee (or subfranchisor) upon a showing that the franchiser has fulfilled
				  its obligations under the franchise agreement, or that for other reasons the
				  impound is no longer required for protection of franchisees.
Any request for an order of the Commissioner authorizing the
				  release of impounds to the franchiser shall contain the following:
(a) A statement of the franchiser that all
				required proceeds from the sale of franchises have been placed with the
				depositary in accordance with the impound condition.
(b) A statement of the depositary signed by
				an appropriate officer setting forth the aggregate amount of impounds placed
				with the depositary.
(c) The names
				of each franchisee (or subfranchisor) and the amount held in the impound for
				the account of each franchisee (or subfranchisor).
(d) A showing that the franchiser, with
				respect to each franchise the funds for which are sought to be released, has
				completely performed those obligations to provide real estate, improvements,
				equipment, inventory, training or other items, as the case may be.
(e) Such other information as the
				Commissioner may require in a particular case.
(f) A statement signed by the franchisee (or
				subfranchisor) that the information is correct.
1. Amendment
				  filed 10-28-82; effective thirtieth day thereafter (Register 82, No.
				  44).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31113,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.113.5 - Surety Bond in Lieu of Impound

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In lieu of the imposition of an impound condition a
				  franchiser may post a surety bond in such amount as shall be required by the
				  Commissioner. Such bond shall be issued by a corporate surety admitted to
				  transact business in the State of California, conditioned upon the completion
				  by the franchiser of its obligations under the franchise contract to provide
				  real estate, improvements, equipment, inventory, training or other items
				  included in the offering. Where more than one franchise may at the same time be
				  sold but unopened, the amount of the bond shall equal the aggregate liability
				  to all such franchises in this state.
1. Amendment
				  filed 10-28-82; effective thirtieth day thereafter (Register 82, No.
				  44).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31113,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.114 - Offering Prospectus. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
				  filed 7-27-88; operative 8-26-88 (Register 88, No.
				  32).
Note: Authority cited: Section
					 31502,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.114.2 - Sequence of Presentation. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
				  filed 11-21-79; designated effective 1-1-80 (Register 79, No.
				  47).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31114,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.114.3 - Adequacy of Disclosure. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
				  filed 11-21-79; designated effective 1-1-80 (Register 79, No.
				  47).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31114,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.114.4 - Disclosure of Offering Circular by Electronic Means

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A franchisor may deliver a franchise
				disclosure document over the Internet or by other electronic means, or in
				machine-readable media, provided all of the following are met:
(1) before furnishing a disclosure document
				or making it accessible to the prospective franchisee, the franchisor has
				advised the prospective franchisee of the formats in which the disclosure
				document is available and any prerequisites or conditions necessary for
				obtaining or reviewing it in a particular format; and
(2) the disclosure document:
(A) is delivered as a single, integrated,
				document or file;
(B) has no
				extraneous content beyond what is required or permitted by law and by the UFOC
				Guidelines, except for the items allowed under subsection (i) below:
(i) for the sole purpose of enhancing the
				prospective franchisee's ability to maneuver through an electronic version of
				the disclosure document, the franchisor may include scroll bars, internal
				links, and search features;
(ii)
				all other features are prohibited, including audio, video, "pop-up" screens,
				and links to external documents.
(C) is delivered in a form that intrinsically
				enables the recipient to store, retrieve, and print the disclosure document;
				and
(D) conforms as to its content
				and format to the requirements of law; and
(3) the franchisor:
(A) can prove that it delivered the
				disclosure document electronically in compliance with this section, and that it
				did so at or before the time required by law; and
(B) keeps records of its electronic delivery
				of disclosure documents and makes those records available on demand by the
				Department.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.120 - Effective Period of Registration

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A franchise offering is duly registered for a period to
				  expire 110 days from the end of the applicant's fiscal year which follows the
				  date of the application, unless the Commissioner by order specifies a different
				  period.
1. New section
				  filed 5-19-89; operative 6-18-89 (Register 89, No. 21). For prior history, see
				  Registers 78, No. 12 and 71, No. 2).
Note: Authority cited and Reference: Sections
					 31120
					 and
					 31502,
					 Corporations Code. Reference: Section
					 31120,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.122 - Registration Renewal Statement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Applications for renewal of a
				registration pursuant to Section
				31122 of the Code shall be made
				upon the Uniform Franchise Registration Application, as defined in Section
				310.111(b).
(b) The following statement shall be attached
				as an appendix to the application, if the franchisor has effected any
				negotiated sales exempt from registration by Section
				310.100.2:
I certify (or declare) that all Notices of Negotiated Sale of
				  Franchise have been filed with the Commissioner as required by paragraph (a)
				  (4) of Section
				  310.100.2 of these rules. Executed
				  at ____________________, California, on the date of _______________,
				  __________.
______________________________
Name of Franchisor
By: ______________________________
Signature of Franchisor
Title: ______________________________
______________________________
Printed Name of Signatory
If executed at any place within or without this state; I
				  certify (or declare) under penalty of perjury under the laws of the State of
				  California that the foregoing is true and correct. Executed at
				  ____________________, California, on the date of _______________,
				  __________.
______________________________
Name of Franchisor
By: ______________________________
Signature of Franchisor
Title: ______________________________
______________________________
Printed Name of Signatory
1. Repealer
				  and new section filed 11-21-79; designated effective 1-1-80 (Register 79, No.
				  47).
2. Editorial correction (Register 80, No. 24).
3.
				  Amendment filed 10-28-82; effective thirtieth day thereafter (Register 82, No.
				  44).
4. Amendment filed 7-27-88; operative 8-26-88 (Register 88, No.
				  32).
5. Amendment filed 8-17-89; operative 9-16-89 (Register 89, No.
				  33).
6. Amendment of form filed 1-20-94; operative 2-21-94 (Register
				  94, No. 3).
7. Editorial correction of subsection (b) (Register 94,
				  No. 3).
8. Amendment filed 4-6-94; operative 5-6-94 (Register 94,
				  No. 14).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31122,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.122.1 - Underscoring of Changes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If the registration renewal statement or any amendment to an
				  application alters the text of the offering prospectus, or of any item, exhibit
				  or other document previously filed, the changes in such text shall be indicated
				  by means of underscoring or in some other appropriate manner.
1. Amendment
				  filed 10-28-82; effective thirtieth day thereafter (Register 82, No.
				  44).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31122,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.123 - Application to Amend Registration

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An amendment to an application filed before or after the
				  effective date of the registration of the sale of franchises shall be made on
				  the form used for the original application with the appropriate heading checked
				  on the facing page prescribed by Section
				  310.111 of these rules. The facing
				  page shall be completely filled in and only such other items of the applicable
				  form as are being amended shall be included.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.124 - Automatic Effectiveness of Amendments to Include UFOC. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 10-19-79 as an emergency; effective upon filing (Register 79, No. 42). A
				  Certificate of Compliance must be filed within 120 days or emergency language
				  will be repealed on 2-16-80.
2. Repealed by operation of Section
				  11422.1(c),
				  Government Code (Register 80, No. 24).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31124,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.155 - Consent to Service of Process

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The consent to service of process required by Section
				  31155 of the Code shall be upon
				  the Uniform Consent to Service of Process prescribed in the Uniform Franchise
				  Registration Application.
1. Amendment
				  filed 10-18-74 as an emergency; effective upon filing (Register 74, No.
				  42).
2. Certificate of Compliance filed 12-24-74 (Register 74, No.
				  52). 3. Amendment filed 11-21-79; designated effective 1-1-80 (Register 79, No.
				  47).
3. Amendment filed 11-21-79; designated effective 1-1-80
				  (Register 79, No 47).
4. Amendment filed 10-28-82; effective
				  thirtieth day thereafter (Register 82, No. 44).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Sections
					 31110,
					 31111,
					 31114
					 and
					 31155,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.156 - Filing and Use of Advertisements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Department will not issue letters of nondisapproval of
				  advertising filed under Section
				  31156 of the Code. However, if the
				  person desiring to use the advertisement requests an order shortening the three
				  business day waiting period before use of the advertisement becomes permissible
				  under that Section, such order will be issued when an appropriate showing of
				  the need therefor is made by the filer. If a registration has become effective,
				  such effectiveness shall automatically constitute an order shortening the three
				  business day waiting period, with respect to any offering prospectus on file at
				  the time of the effectiveness of such registration, relating to the offer and
				  sale of the franchises covered by such registration, so as to permit the use of
				  such offering prospectus at any time thereafter.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.156.2 - Non Filing of Certain Advertisements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The term "advertisement" as used in Section
				  31156 of the Code does not
				  include, and there need not be filed with the Commissioner any notice, circular
				  or other communication which is published or transmitted only after a
				  registration of the franchise is in effect and which contains only the
				  statements required or permitted to be included therein by the following
				  provisions of this rule:
(a) Such
				communications may include any one or more of the following items of
				information, which need not follow the numerical sequence of this paragraph:
1. the name of the franchiser;
2. a brief description of the type of
				franchise being offered;
3. a brief
				description of the type of business to be conducted by the
				franchisee;
4. the total dollar
				investment (which must include all obligations) required to be made on a
				franchise purchase, or if the amount of such investment varies, the method of
				its determination or the probable price range;
5. the city and/or state in which franchises
				are being offered;
6. the name and
				address of the sender of the communication.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.156.3 - Exemption for Internet Advertisements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any communication made in connection with
				an offer or sale of a franchise posted on a website on the Internet ("Internet
				advertisement") is exempt from the requirements of Corporations Code Section
				31156
				for filing advertisements with the Commissioner provided a franchisor complies
				with all of the following:
(1) The franchisor
				files with the Commissioner a written notice, executed by an officer or general
				partner of the franchisor having direct responsibility for the conduct of the
				franchisor's activities, and verified pursuant to Section
				2015.5
				of the Code of Civil Procedure, that includes:
(A) The Uniform Resource Locator ("URL")
				address or similar address or device identifying the location of any Internet
				advertisement;
(B) A statement that
				the franchisor, or anyone acting with the franchisor's knowledge, agrees to
				comply with the California Franchise Investment Law, and Rules thereunder, when
				posting any Internet advertisement on a website; and
(C) The franchisor's name, address, telephone
				number, and contact person.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.210 - Persons Identified in an Application

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For the purposes of Section
				31210 of the Code a person shall
				be deemed identified only if all the information required by:
(1) Item 2 (Identity and Business Experience
				of Persons Affiliated With The Franchisor; Franchise Brokers) and Item 3
				(Litigation) of an offering circular upon the format prescribed by the Uniform
				Franchise Registration Application, in accordance with Item 2 of the Special
				Instructions for the Uniform Franchise Offering Circular ("UFOC") (see Section
				310.114.1(c) of
				these rules), or;
(2) a Salesman
				Disclosure Form prescribed by the Uniform Franchise Registration Application
				provided that, in an initial application to register the offer and sale of a
				franchise, Item 2.A. of the Salesman Disclosure Form does not disclose a
				pending action involving an arrest that did not result in conviction or plea of
				nolo contendere , has been filed with the Commissioner.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.303 - Notice of Violation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An application for approval as to form of a written notice of
				  violation in accordance with Section
				  31303 of the Code shall be made in
				  writing and may be in letter form. There shall be attached to this application
				  as an exhibit a form of the written notice for which the Commissioner's
				  approval is requested which should contain the following:
(a) In capital letters of not less than
				10-point type the following legend, printed in contrasting color or type:
"THIS NOTICE DISCLOSING VIOLATION OF THE FRANCHISE INVESTMENT
				  LAW HAS BEEN APPROVED BY THE COMMISSIONER OF BUSINESS OVERSIGHT ONLY AS TO ITS
				  FORM. SUCH APPROVAL DOES NOT IMPLY A FINDING BY THE COMMISSIONER THAT ANY
				  STATEMENTS MADE HEREIN OR IN ANY ACCOMPANYING DOCUMENTS ARE TRUE OR COMPLETE
				  AND THE COMMISSIONER MAKES NO RECOMMENDATION AS TO WHETHER OR NOT RESORT SHOULD
				  BE HAD TO THE CIVIL REMEDIES PROVIDED IN THE FRANCHISE INVESTMENT
				  LAW."
(b) The name and
				address of each party to whom the notice is to be directed. If such parties are
				too numerous to make the submission of separate notices convenient, such
				parties and their addresses may be shown upon a list attached to the
				application.
(c) A statement
				regarding the respect in which the violation under Section
				31303 of the Code arose, including
				the following:
(1) Identification of the
				transaction involved, including the names of the franchiser and/or
				subfranchisors, the date, the particular franchise, and the nature and amount
				of the consideration received by the seller of the franchise.
(2) Identification of the specific section
				concerning which the violation occurred.
(3) An explanation of the liability of the
				franchiser and/or sub franchisors to the franchisee under that specific
				section.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.304 - Notice of Violation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An application for approval as to form of a written notice of
				  violation in accordance with Section
				  31304 of the Code shall be made in
				  writing and may be in letter form. There shall be attached to this application
				  as an exhibit a form of the written notice for which the Commissioner's
				  approval is requested which should contain the following:
(a) In capital letters of not less than
				10-point type the following legend, printed in contrasting color or type: "THIS
				NOTICE DISCLOSING VIOLATION OF THE FRANCHISE INVESTMENT LAW HAS BEEN APPROVED
				BY THE COMMISSIONER OF BUSINESS OVERSIGHT ONLY AS TO ITS FORM. SUCH APPROVAL
				DOES NOT IMPLY A FINDING BY THE COMMISSIONER THAT ANY STATEMENTS MADE HEREIN OR
				IN ANY ACCOMPANYING DOCUMENTS ARE TRUE OR COMPLETE AND THE COMMISSIONER MAKES
				NO RECOMMENDATION AS TO WHETHER OR NOT RESORT SHOULD BE HAD TO THE CIVIL
				REMEDIES PROVIDED IN THE FRANCHISE INVESTMENT LAW."
(b) The name and address of each party to
				whom the notice is to be directed. If such parties are too numerous to make the
				submission of separate notices convenient, such parties and their addresses may
				be shown upon a list attached to the application.
(c) A statement regarding the respect in
				which the violation under Section
				31304 of the Code arose, including
				the following:
(1) Identification of the
				transaction involved, including the names of the franchiser and/or
				subfranchisors, the date, the particular franchise, and the nature and amount
				of the consideration received by the seller of the franchise.
(2) Identification of the specific section
				concerning which the violation occurred.
(3) An explanation of the liability of the
				franchiser and/or subfranchisors to the franchisee under that specific
				section.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.6 - Franchises › Section 310.505 - Charges for Copies of Documents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following charges shall be made for copies and telecopies
				  of documents furnished by the Commissioner and for certification
				  thereof:
(a) Two dollars for each
				certificate under seal affixed thereto, plus 30 cents for each page or fraction
				thereof to be certified, whether the copies to be certified are furnished by
				the person requesting the certification or by the Commissioner.
(b) Thirty cents for each page or fraction
				thereof when the copies are not to be certified.
(c) One dollar for each page or fraction
				thereof when the copies are sent by telephone transceiving equipment.
1. New
				  subsection (c) filed 1-22-74; effective thirtieth day thereafter (Register 74,
				  No. 4).
2. Change without regulatory effect amending section and
				  adopting NOTE filed 4-21-94 pursuant to title 1, section
				  100, California Code of
				  Regulations (Register 94, No. 16).
Note: Authority cited: Section
					 31502,
					 Corporations Code. Reference: Section
					 31505,
					 Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.9 - Commodities [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer of
				Subchapter 2.9 (Sections
				350.500 through
				350.541.1, not consecutive) and
				new Subchapter 2.9 (Sections
				350.500 through
				350.545.2, not consecutive) filed
				10-1-73 as an emergency; effective upon filing (Register 73, No. 40). For prior
				history, see Register 69, No. 52, 70, Nos. 12 and 50, 72, Nos. 2 and 30, 73,
				No. 10.
2. Certificate of Compliance filed 1-16-74 (Register 74, No.
				3).
3. Repealer of Subchapter 2.9 (Sections
				350.500 through
				350.545.2, not consecutive) filed
				3-13-80; effective thirtieth day thereafter (Register 80, No. 11). For prior
				history, see Registers 74, No. 9; 74, No. 28; 74, No. 51; 75, No. 1; 75, No.
				18; 75, No. 19; 75, No. 51; 76, No. 25; 77, No. 36; 78, No. 6; 78, No. 12; 78,
				No. 36; 78, No. 45; and 78, No. 48.
Note: Authority cited for Subchapter 2.9: Section
				  29591,
				  Corporations Code, Chapter 452 of the Statutes of 1979. Reference: Division
				  4.5, Title 4, Corporations Code, Chapter 452 of the Statutes of 1979.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 900 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The following
				terms used in this subchapter shall have the following meanings:
(1) "Amount financed" means:
(A) With respect to sales-based financing,
				the amount of funds to be provided by the financer to the recipient or on the
				recipient's behalf, minus any prepaid finance charge.
(B) With respect to a closed-end transaction,
				the principal amount, plus any other amounts that are financed by the financer
				and are not part of the finance charge, minus any prepaid finance
				charge.
(C) With respect to a
				commercial open-end credit plan, the approved credit limit, minus any prepaid
				finance charge.
(D) With respect to
				a factoring transaction disclosure made pursuant to section
				22802 of the code, the original
				advance amount, minus any prepaid finance charge.
(E) With respect to a factoring transaction
				disclosure made pursuant to section
				22803 of the code, the approved
				advance limit, minus any prepaid finance charge.
(F) With respect to asset-based lending
				disclosures made pursuant to section
				22803 of the code and section
				950, the amount described in
				section 950, subdivision (a)(2)(A) or
				(a)(3)(A), minus any prepaid finance charge.
(G) With respect to a lease transaction:
(i) If the financer does not select,
				manufacture, or supply the goods to be leased, the net cost to the financer to
				acquire the property to be leased, including any related costs and charges
				financed as a part of such transaction, which may include, without limitation,
				installation charges, delivery costs, software license fees, sales and use
				taxes, and similar charges, minus any prepaid finance charge.
(ii) If the financer selects, manufactures or
				supplies the goods to be leased, the price that the financer would sell the
				goods in a cash transaction, including any related costs and charges financed
				as a part of such transaction, which may include, without limitation,
				installation charges, delivery costs, software license fees, sales and use
				taxes, and similar charges, minus any prepaid finance charge and any down
				payment or other deposit to be paid by the
				recipient.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 920 - Signatures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Prior to
				consummating a commercial financing, a financer shall obtain a copy of the
				disclosures made pursuant to sections
				22802 and
				22803 of the code that are signed
				by the recipient. Where the recipient is not a natural person, a natural person
				authorized to sign on behalf of the legal entity may sign the disclosure,
				provided that the natural person is not a broker. Such disclosures may be
				transmitted between the recipient and the provider via electronic transmission
				and utilizing electronic signatures, regardless of whether subsequent financing
				agreements, amendments and supplements are provided to the recipient in person,
				by mail or electronically.
(b) If a
				commercial financing transaction is consummated electronically, a provider may
				obtain a recipient's signature on the required disclosures electronically or by
				facsimile.
(c) A provider is not
				required to obtain the recipient's signature on any disclosure for a commercial
				financing transaction that is not consummated. When a provider provides
				multiple disclosures to a recipient during the negotiation of a commercial
				financing transaction that is ultimately consummated, the provider need only
				obtain the recipient's signature on the final disclosure that corresponds to
				the consummated transaction.
1. New section
				  filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section
				  11343.4(b)(2)
				  (Register 2022, No. 23). Transmission deadline specified in Government Code
				  section
				  11346.4(b)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
				  in Government Code section
				  11349.3(a)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20.
Note: Authority cited: Sections
					 321 and
					 22804,
					 Financial Code. Reference: Sections
					 22800,
					 22802,
					 22803 and
					 22804,
					 Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 921 - Thresholds for Disclosure

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				For the purpose of determining whether the amount of a commercial financing
				offer is equal to or less than $500,000, a provider shall:
(1) For an open-end credit plan, use the
				approved credit limit.
(2) For an
				asset-based lending transaction:
(A) Use the
				approved credit limit if transaction meets all of the following requirements:
(i) The provider offers the recipient an
				agreement that describes the general terms and conditions of the commercial
				financing transaction that will occur under the agreement;
(ii) The approved credit limit exceeds
				$500,000; and
(iii) The parties to
				the asset-based lending transaction agree in writing that an amount exceeding
				$500,000 is reasonably expected to be advanced to the recipient and outstanding
				at some point during the agreement and such agreement is made in writing before
				the execution of the financing agreement, before any amendment to an agreement
				entered into before the effective date of these regulations, or before any
				amendment increasing the approved credit limit for a consummated financing
				agreement to an amount exceeding $500,000.
(B) If the asset-based lending transaction
				does not meet all of the requirements listed in subdivision (a)(2)(A) above,
				the commercial financing offer shall be considered less than or equal to
				$500,000.
(3) For a
				factoring transaction,
(A) Use the approved
				advance limit if the transaction meets all of the following requirements:
(i) The provider offers the recipient an
				agreement that describes the general terms and conditions of the commercial
				financing transaction that will occur under the agreement;
(ii) The approved advance limit exceeds
				$500,000; and
(iii) The parties to
				the factoring transaction agree in writing that an amount exceeding $500,000 is
				reasonably expected to be advanced to the recipient and outstanding for legally
				enforceable claims that have not yet been paid at some point during the
				agreement and such agreement is made in writing before the execution of the
				financing agreement, before any amendment to an agreement entered into before
				the effective date of these regulations, or before any amendment increasing the
				approved advance limit for a consummated agreement to an amount exceeding
				$500,000.
(B) If the
				factoring transaction does not meet all of the requirements listed in
				subdivision (a)(3)(A) above, the commercial financing offer shall be considered
				less than or equal to $500,000.
(4) In all other transactions, use the amount
				financed.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 922 - Commercial Financings with Multiple Payment Options; Balances Payable on Demand

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For
				commercial financings that offer multiple payment options to the recipient, the
				provider shall calculate required disclosures based upon the minimum payments
				allowed under the contract.
(b) For
				commercial financings where the balance due is payable on demand, the provider
				shall calculate required disclosures based upon an assumed term of one year
				unless the provider reasonably anticipates that the balance will be repaid more
				quickly. If an alternate maturity date is stated in the legal obligation
				between the parties, the disclosures shall be based on that date.
1. New section
				  filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section
				  11343.4(b)(2)
				  (Register 2022, No. 23). Transmission deadline specified in Government Code
				  section
				  11346.4(b)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
				  in Government Code section
				  11349.3(a)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20.
Note: Authority cited: Sections
					 321 and
					 22804,
					 Financial Code. Reference: Sections
					 22800,
					 22802,
					 22803 and
					 22804,
					 Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 930 - Estimates - Sales-Based Financing - Historical Method

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) This section shall apply only to
				sales-based financing.
(b) With
				respect to any assumptions about a recipient's future monthly sales, income, or
				receipts necessary to calculate the disclosures required by this subchapter, a
				provider shall use the "estimated monthly sales, income, or receipts
				projection" described below.
(1) The estimated
				monthly sales, income, or receipts projection shall be calculated as the
				recipient's historical average of:
(A) The
				monthly sales, income or receipts volume received through the particular
				payment channel or mechanism; and
(B) The monthly sales, income, or receipts
				received through any other payment channel or mechanism that the financing
				contract would have required recipients to redirect to the particular payment
				channel or mechanism had the financing contract been operative
				previously.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 940 - Calculation of Annual Percentage Rate

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The annual percentage rate is a measure
				of the cost of credit, expressed as a yearly rate, that relates the amount and
				timing of value received by the recipient to the amount and timing of payments
				made to the provider. For purposes of this subchapter, the annual percentage
				rate shall be determined in accordance with either the United States Rule
				method or the actuarial method, as both are set forth in Appendix J, 12 C.F.R.
				Part 1026 (1-1-21 Edition), and which is incorporated herein by this
				reference.
(b) The annual
				percentage rate calculation shall include all finance charges as that term is
				defined in section
				943.
(c) When calculating the required disclosures
				for commercial open-ended credit plans made pursuant to section
				911, the provider shall assume
				that the recipient borrows the approved credit limit at origination and makes
				no subsequent draws and that minimum on-time payments are made pursuant to the
				contract.
1. New section
				  filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section
				  11343.4(b)(2)
				  (Register 2022, No. 23). Transmission deadline specified in Government Code
				  section
				  11346.4(b)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
				  in Government Code section
				  11349.3(a)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20.
Note: Authority cited: Sections
					 321 and
					 22804,
					 Financial Code. Reference: Sections
					 22800,
					 22802,
					 22803 and
					 22804,
					 Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 941 - Additional Assumptions for Factoring Transactions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When calculating the required disclosures
				in accordance with section
				912 for factoring transactions, to
				provide a disclosure based upon a single transaction as described by section
				22802 of the code, the provider
				shall assume that it will receive full payment of the legally enforceable claim
				upon the date that legally enforceable claim becomes due and payable.
(b) When calculating the required disclosures
				in accordance with section
				913 for factoring transactions, to
				provide a disclosure based upon an example transaction as described by section
				22803 of the code, the provider
				shall assume that it will receive full payment of the legally enforceable claim
				upon the date that results from adding the term to the date the disclosure is
				made.
1. New section
				  filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section
				  11343.4(b)(2)
				  (Register 2022, No. 23). Transmission deadline specified in Government Code
				  section
				  11346.4(b)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
				  in Government Code section
				  11349.3(a)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20.
Note: Authority cited: Sections
					 321 and
					 22804,
					 Financial Code. Reference: Sections
					 22800,
					 22802,
					 22803 and
					 22804,
					 Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 942 - Estimated Annual Percentage Rate - Sales-Based Financing

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When calculating the estimated payments
				and reasonably anticipated true-ups for sales-based financing, a provider shall
				use the estimated monthly sales, income or receipts projection described in
				subdivision (b) of section
				930 or the internal estimated
				sales, income, or receipts projection described in subdivision (a)(3) of
				section 931, accounting for:
(1) Specified payment amounts;
(2) Changes to the split rate over
				time;
(3) Contractual provisions
				requiring a minimum payment amount;
(4) Payments required when the recipient's
				timely payment or series of payments falls below a contracted threshold;
				and
(5) Any other finance charges
				that may be reasonably anticipated based upon the estimated monthly sales,
				income, or receipts projection or the provider's internal estimated sales,
				income, or receipts projection.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 943 - Finance Charge

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				"finance charge" for a commercial financing transaction is the sum of:
(1) For all commercial financing
				transactions, all charges that would be included in the finance charge under 12
				C.F.R. Part 1026.4 (1-1-21 Edition), which is incorporated herein by this
				reference, if the transaction were a consumer credit transaction and the
				financer were a creditor under federal law. This paragraph is intended to
				require finance charges to include any charge that would be a finance charge
				under 12 C.F.R. Part 1026.4 , regardless of whether the transaction in question
				would be considered an "extension of credit" under federal law and regardless
				of whether the financer would be considered a "creditor" under federal
				law;
(2) In any accounts receivable
				purchase transaction that is not a factoring transaction, the discount taken on
				the face value of the accounts receivable;
(3) In a factoring transaction, the face
				value on the invoice minus the amount paid directly to the recipient upon
				assignment of the legally enforceable claim to the financer. For the purposes
				of the calculation described in the preceding sentence, if the transaction
				involves a reserve amount, the reserve amount shall also be subtracted from the
				face value on the invoice only if the financer reasonably anticipates that it
				will return all reserve amounts to the recipient once it has been paid for the
				legally enforceable claim or claims assigned by the recipient or upon
				termination of the contractual relationship between the financer and the
				recipient, properly crediting payments made by account debtors and previous
				collections by the financer from the recipient, all amounts held in reserve,
				and payments by insurers on defaulted accounts. In determining what the
				financer can reasonably anticipate, the financer shall consider past
				performance of similar contracts (both those made to the recipient and other
				similar recipients) and the policies and procedures of the financer;
				and
(4) In any lease financing
				transaction, the sum of lease payments (including any regular periodic payments
				and irregular payments) and price of the purchase option that the lessee may
				pay to acquire the leased goods at the end of the lease, minus the amount
				financed.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 950 - Asset-Based Lending; Example Transaction

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The alternative disclosures to a
				recipient under section
				916 shall be made using an example
				transaction and in accordance with the formatting requirements of section
				916. The example transaction shall
				be based on the proposed agreement governing the actual transaction between the
				provider and recipient with the following parameters, as applicable:
(1) For asset-based lending transactions
				where the finance charge, annual percentage rate, or term varies based upon the
				type of advance received, where the provider offers the recipient an agreement
				that describes the general terms and conditions of the commercial financing
				transactions that will occur under the agreement, and where the financer
				provides disclosures based upon an example of a transaction that could occur
				under the agreement under section
				22803 of the code, the provider
				shall give the recipient a separate disclosure for each type of
				advance.
(2) If the agreement
				between a financer and recipient permits an advance of funds to the recipient
				up to and including an approved credit limit, the example transaction used in
				making the disclosures shall assume:
(A) The
				recipient borrows up to the approved credit limit at origination;
(B) The recipient maintains a balance equal
				to the approved credit limit by reborrowing up to the approved credit limit for
				a time equal to the draw period or one year, whichever is less; and
(C) At the end of the time specified under
				subdivision (a)(2)(B), the financer is repaid according to the terms specified
				in the contract.
(3) If
				the agreement between a provider and recipient does not specify an approved
				credit limit, the example transaction used in making the disclosures shall
				assume:
(A) The recipient has drawn
				$10,000;
(B) The recipient
				maintains a balance equal to $10,000 by reborrowing up to the approved credit
				limit for a time equal to the draw period or one year, whichever is less;
				and
(C) At the end of the time
				specified under subdivision (a)(3)(B), the financer is repaid according to the
				terms specified in the contract.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 951 - Factoring; Example Transaction

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				For factoring transactions where the finance charge, annual percentage rate, or
				term varies based upon the type of the legally enforceable claim assigned,
				where the provider offers the recipient an agreement that describes the general
				terms and conditions of the commercial financing transactions that will occur
				under the agreement, and where the financer provides disclosures based upon an
				example of a transaction that could occur under the agreement under section
				22803 of the code, the provider
				shall give the recipient a separate disclosure table under section
				913 for each type of legally
				enforceable claim.
(b) Maximum draw
				amount. If the agreement between a financer and recipient permits an advance of
				funds to the recipient up to and including an approved advance limit for
				legally enforceable claims that have not yet been paid by the account debtor,
				the example transaction used in making the disclosures shall be equal to the
				approved advance limit.
(c) No
				maximum draw amount. If the agreement between a provider and recipient does not
				specify an approved advance limit for legally enforceable claims that have not
				yet been paid by the account debtor, the example transaction used in making the
				disclosures shall assume the recipient has drawn $10,000.
1. New section
				  filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section
				  11343.4(b)(2)
				  (Register 2022, No. 23). Transmission deadline specified in Government Code
				  section
				  11346.4(b)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
				  in Government Code section
				  11349.3(a)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20.
Note: Authority cited: Sections
					 321 and
					 22804,
					 Financial Code. Reference: Sections
					 22800,
					 22802,
					 22803 and
					 22804,
					 Financial Code.