Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 240 - SALES-BASED FINANCING › Section 10VAC5-240-30 - Sales-Based Financing Disclosure Form

Current through Register Vol. 40, No. 24, July 15, 2024
A. A provider shall furnish a completed
				Sales-Based Financing Disclosure Form to every recipient at the time the
				provider extends a specific offer of sales-based financing to the recipient.
				When a provider allows a recipient to choose from multiple sales-based
				financing options or to customize the terms of the sales-based financing, a
				provider shall furnish a Sales-Based Financing Disclosure Form only for the
				specific offer that the recipient selects. The format of the Sales-Based
				Financing Disclosure Form shall be prescribed by the commission.
B. If any information required by the
				Sales-Based Financing Disclosure Form is inapplicable, the provider shall enter
				"Not Applicable" or "N/A" in the space provided. In order to mark a box that
				appears on the Sales-Based Financing Disclosure Form, the provider shall insert
				a check mark or "X" in the applicable box.
C. If any information required by the
				Sales-Based Financing Disclosure Form does not fit within the space provided on
				the first page of the form, the provider shall (i) insert a check mark or "X"
				in the "SEE PAGE 2" box that appears within the applicable section of the first
				page, (ii) insert a check mark or "X" in each applicable box on the second page
				of the form, (iii) disclose the information in the large box on the second page
				of the form, (iv) furnish a recipient with both pages of the completed form,
				and (v) require the recipient to sign and date both pages of the completed
				form. A provider may elect to furnish a recipient with the second page of the
				form even though all of the required information fits on the first page
				provided that the provider enters "Not Applicable" or "N/A" in the large box on
				the second page.
D. A provider
				shall not give a recipient a Sales-Based Financing Disclosure Form that
				contains any false or misleading information. The Sales-Based Financing
				Disclosure Form shall be furnished to a recipient as a separate document from
				any other contracts, agreements, papers, notices, or other disclosures provided
				to the recipient, but it may be mailed or transmitted in a package or
				electronic file that contains other documents. A provider shall not modify the
				prescribed format of the Sales-Based Financing Disclosure Form, or either
				append to or include within it any information that is not required by this
				form. However, if a provider is not furnishing a recipient with the second page
				of the Sales-Based Financing Disclosure Form because all of the required
				information fits within the first page of the form, then the provider may
				remove all "SEE PAGE 2" references and the corresponding boxes from the
				form.
E. A provider shall require a
				recipient to sign and date the Sales-Based Financing Disclosure Form at the
				time the recipient accepts the provider's offer. A provider may obtain a
				recipient's electronic signature on the Sales-Based Financing Disclosure Form
				if the provider complies with all applicable provisions of the Uniform
				Electronic Transactions Act (§ 59.1-479 et seq. of the Code of Virginia),
				the Electronic Signatures in Global and National Commerce Act (15
				USC §
										7001 et seq.), and any other
				applicable laws. A provider is required to obtain only one signature from the
				recipient on each Sales-Based Financing Disclosure Form.
F. A provider shall provide a recipient with
				the Sales-Based Financing Disclosure Form in a format that the recipient may
				retain. This includes a hard copy or electronic document that the recipient can
				save for future reference.
G. If a
				recipient elects to pay off or refinance the sales-based financing prior to
				full repayment, a provider shall furnish the recipient with an updated and
				completed Sales-Based Financing Disclosure Form that contains the information
				as of the date that the sales-based financing is paid off or refinanced (i.e.,
				immediately prior to the pay off or refinancing). The provider shall comply
				with subsections B through F of this section in connection with the updated
				Sales-Based Financing Disclosure Form. The provider shall require a recipient
				to sign and date the updated Sales-Based Financing Disclosure Form at the time
				the recipient pays off or refinances the sales-based financing.
Statutory Authority: § 6.2-2237 of the Code of
					 Virginia.