August 14, 2022

Volume XII, Number 226

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August 12, 2022

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August 11, 2022

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California Approves Commercial Financing Disclosure Regulations

On June 9, the California Office of Administrative Law (OAL) approved the Department of Financial Protection and Innovation’s (DFPI) proposed commercial financing disclosure regulations issued pursuant to SB 1235. The regulations will become effective on December 9, 2022, and the final regulatory text can be found here.

Putting it Into Practice: Impacted companies offering should note that the final regulations do not provide a model disclosure form but provide fairly prescriptive rules regarding the content and format of the required disclosures. While similar regulations in New York are still pending (we discussed these regulations in a previous bog, here), Virginia regulation applicable to merchant cash advance companies is effective July 1, and Utah’s commercial financing disclosure regulations are effective Jan. 1, 2023. Commercial lenders and small business financers will likely need to prepare for additional disclosure laws being considered by legislatures in several other states, including in Connecticut, Maryland, Mississippi, Missouri, New Jersey, and North Carolina.

Copyright © 2022, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume XII, Number 164
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About this Author

Moorari Shah Bankruptcy Lawyer Sheppard Mullin Law Firm
Partner

Moorari Shah is a partner in the Finance and Bankruptcy Practice Group in the firm's Los Angeles and San Francisco offices. 

Areas of Practice

Moorari combines deep in-house and law firm experience to deliver practical, business-minded legal advice. He represents banks, fintechs, mortgage companies, auto lenders, and other nonbank institutions in transactional, licensing, regulatory compliance, and government enforcement matters covering mergers and acquisitions, consumer and commercial lending, equipment finance and leasing, and supervisory examinations,...

213-617-4171
A.J. S. Dhaliwal Bankruptcy Attorney Sheppard Mullin Washington DC
Associate

A.J. is an associate in the Finance and Bankruptcy Practice Group in the firm's Washington, D.C. office. 

A.J. has over a decade of experience helping banks, non-bank financial institutions, and other companies providing financial products and services in a wide range of matters including government enforcement actions, civil litigation, regulatory examinations, and internal investigations.

With a diversified regulatory, compliance, and enforcement background, A.J. counsels financial institutions in matters involving...

202-747-2323
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