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Manatt, Phelps & Phillips, LLP

California Commercial Financing Registration Requirement Passes Senate

Manatt, Phelps & Phillips, LLP on

Increased regulation of commercial financing shows no signs of stopping. California SB 1482, which would require commercial financing providers and brokers to register with the California Department of Financial Protection...more

Allen Matkins

Judge Rules That A Front For Mexican Cartel Had The Capacity To Protect Its Own Interests

Allen Matkins on

California Corporations Code Section 25118(b) provides an exemption from the state's usury limitations for loans.  The exemption is subject to several conditions.  One condition is the existence of either a preexisting...more

Orrick, Herrington & Sutcliffe LLP

District Court grants motion for summary judgment to DFPI in commercial financing disclosure case

Orrick, Herrington & Sutcliffe LLP on

On December 4, the U.S. District Court for the Central District of California granted the California DFPI’s motion for summary judgment in Small Business Finance Association v. Clothilde Hewlett, which challenged the DFPI’s...more

Mayer Brown

Bad Omen: CA Imposes New Fee, UDAAP, and Annual Reporting Requirements on Small Business Financers

Mayer Brown on

Mere days before Halloween, California enacted California Senate Bill 666, imposing a set of restrictions on the fees that commercial financers may charge their small business customers. Signed by the governor on October 13,...more

Kilpatrick

New California Regulation Extends UDAAP Prohibitions to Commercial Financing

Kilpatrick on

While federal and state laws have long prohibited providers of financial services from engaging in unfair, deceptive, and abusive acts and practices (“UDAAP”), such prohibitions typically apply only to consumer-purpose...more

Allen Matkins

Bill Would Prohibit Charging Certain Commercial Loan Fees To Small Businesses

Allen Matkins on

California Senator Dave Min has authored an unfortunately numbered bill, SB 666, that would prohibit a "covered entity"  from charging the following fees to a small business in connection with a commercial financing...more

Shipkevich PLLC

California DFPI Proposes Regulation to Implement Registration Requirements for Entities Covered Under California Consumer...

Shipkevich PLLC on

The California Consumer Financial Protection Law (“CCFPL”), established in September of 2020 under Governor Newsom, augmented the Department of Financial Protection & Innovation’s (“DFPI”) authoritative ability by increasing...more

Katten Muchin Rosenman LLP

California Court of Appeal Ruling Limits Application of Default Interest

Katten Muchin Rosenman LLP on

The California Court of Appeal recently ruled that California law treats default interest measured against the unpaid principal balance of a loan as an unenforceable penalty. In Honchariw v. FJM Private Mortgage Fund, LLC...more

Allen Matkins

The DFPI's Subterranean "True Lender" Doctrine

Allen Matkins on

Some readers may recall that two years ago the Office of the Comptroller of the Currency adopted a "true lender" rule.  That rule  The rule specified that a bank makes a loan and is the true lender if, as of the date of...more

Morrison & Foerster LLP

Square Peg, Round Hole: MCA Disclosures Under the California Commercial Financing Disclosure Regulations

Morrison & Foerster LLP on

In the third in our series on the California Commercial Financing Disclosure Regulations, we focus on the disclosure requirements for merchant cash advances (MCAs)....more

Morrison & Foerster LLP

Look Inside: California Commercial Financing Disclosure Regulations

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On June 9, 2022, the California Office of Administrative Law approved the Department of Financial Protection and Innovation’s final regulations implementing California’s first-of-its-kind commercial financing disclosure law....more

Allen Matkins

California Bill Would Ban This Unusual "Purpose Credit"

Allen Matkins on

Regulation U, 12 CFR § 221.1 – 221.125, imposes certain requirements for lenders, other than securities brokers and dealers, who extend credit secured by margin stock.  Regulation U defines "purpose credit" as "any credit for...more

Allen Matkins

CFL Licensees: Beware Of The Ides Of March!

Allen Matkins on

Every month of the year has an Ides.  This year the Ides will be doubly significant for licensees under the California Financing Law, Cal. Fin. Code § 22000 et seq. ...more

Allen Matkins

DFPI Issues Report On California Finance Lenders

Allen Matkins on

As 2021 begins drawing to close, the Department of Financial Protection & Innovation has released its 2020 Annual Report of Finance Lenders, Brokers, and PACE Administrators Licensed Under the California Financing Law. ...more

Allen Matkins

DFPI To Hold Public Hearing Today On Proposed Commercial Loan Disclosures

Allen Matkins on

Two years ago, California enacted SB 1235 (2018 Cal. Stats. ch. 1011) requiring providers of commercial financing to disclose certain information to the businesses seeking financing.  The Department of Financial Protection...more

Allen Matkins

DBO Proposes Commercial Loan Disclosure Rules

Allen Matkins on

In 2018, California enacted SB 1235 (2018 Cal. Stats. ch. 1011) requiring providers of commercial financing to disclose certain information to the businesses seeking financing.  The Commissioner of Business Oversight last...more

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