October 17, 2021

Volume XI, Number 290

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October 15, 2021

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Governor Brown Signs SB 1235 into Law

Governor Brown yesterday signed into law SB 1235, a bill requiring consumer-like disclosures to be made on certain commercial finance products, including small business loans and merchant cash advances, among other things.  Contrary to reports in certain press outlets, the law will not take effect by a date certain.  Rather, the California Department of Business Oversight (“DBO”) is now required to adopt regulations addressing details such as calculation methods and the time, manner, and format of the new disclosures.  The DBO also may specify the date by which finance companies are required to comply.

We understand that the DBO is unlikely to act until the new Commissioner takes office, so compliance with the new law probably will not be required until well into 2019, if not 2020.  That said, it will be critical for the industry to engage with the DBO regarding the forthcoming regulations and when compliance with them will be required.

Copyright © by Ballard Spahr LLPNational Law Review, Volume VIII, Number 274
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About this Author

Scott Pearson, Ballard Spahr Law Firm, Los Angeles, Business Litigation Attorney
Partner

Scott Pearson focuses his practice on the defense of regulatory enforcement actions and class actions, other complex business litigation, and regulatory compliance counseling. Martindale-Hubbell rates Mr. Pearson "at the highest level of professional excellence." He has been called "a true expert in complex litigation and consumer class actions" and "a no-nonsense bulldog lawyer who is highly respected by his peers and the judiciary."

Prominent companies regularly entrust Mr. Pearson with matters involving bet-the-company exposure or extreme...

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