August 12, 2022

Volume XII, Number 224

Advertisement
Advertisement

August 12, 2022

Subscribe to Latest Legal News and Analysis

August 11, 2022

Subscribe to Latest Legal News and Analysis

August 10, 2022

Subscribe to Latest Legal News and Analysis

OAL May Soon Decide Fate Of California's Proposed Commercial Financing Rules

In September 2018, then Governor Jerry Brown signed SB 1235 into law.  SB 1235 added a new division to the Financial Code imposing specific loan disclosure requirements on providers of commercial financings.  These disclosures include:

  • 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 bill required the Department of Financial Protection & Innovation (then known as the Department of Business Oversight) to adopt regulations governing these disclosures.  Cal. Fin. Code § 22804.  Commercial financing providers are not required to comply with the new disclosure requirements until the Commissioner's regulations are adopted and become effective.  Cal. Fin. Code § 22804(c).  Following four rounds of comments, the Department submitted its proposed rules to the Office of Administrative Law for review.  The OAL is required to conduct a review of the Department's rulemaking record to ensure that the agency satisfied the requirements of the California Administrative Procedure Act and OAL’s regulations.   This review is scheduled to end this Friday, June 10.   The OAL must either: (i) approve the Department's rulemaking action and file the proposed regulation with the Secretary of State; or (ii) disapprove the rulemaking action.  Cal. Gov't Code § 11349.3.  

© 2010-2022 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XII, Number 159
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

949-851-5428
Advertisement
Advertisement
Advertisement