§ 943. Finance Charge.
10 CA ADC § 943Barclays Official California Code of Regulations
10 CCR § 943
§ 943. Finance Charge.
(1) For all commercial financing transactions, all charges that would be included in the finance charge under 12 C.F.R. Part 1026.4 (1-1-21 Edition), which is incorporated herein by this reference, if the transaction were a consumer credit transaction and the financer were a creditor under federal law. This paragraph is intended to require finance charges to include any charge that would be a finance charge under 12 C.F.R. Part 1026.4, regardless of whether the transaction in question would be considered an “extension of credit” under federal law and regardless of whether the financer would be considered a “creditor” under federal law;
(3) In a factoring transaction, the face value on the invoice minus the amount paid directly to the recipient upon assignment of the legally enforceable claim to the financer. For the purposes of the calculation described in the preceding sentence, if the transaction involves a reserve amount, the reserve amount shall also be subtracted from the face value on the invoice only if the financer reasonably anticipates that it will return all reserve amounts to the recipient once it has been paid for the legally enforceable claim or claims assigned by the recipient or upon termination of the contractual relationship between the financer and the recipient, properly crediting payments made by account debtors and previous collections by the financer from the recipient, all amounts held in reserve, and payments by insurers on defaulted accounts. In determining what the financer can reasonably anticipate, the financer shall consider past performance of similar contracts (both those made to the recipient and other similar recipients) and the policies and procedures of the financer; and
(b) For products where any part of the finance charge is based upon interest that accrues on the outstanding principal balance owed by the recipient, the interest charge adjusts over time, and it is not possible to calculate the interest charges in advance for the entire term of the transaction because the charge adjusts based upon a benchmark rate plus a margin, the provider shall calculate the interest charges for periods of time when the interest charge cannot be calculated in advance based upon the benchmark rate in effect at the time of disclosure and the margin.
Note: Authority cited: Sections 321 and 22804, Financial Code. Reference: Sections 22800, 22802, 22803 and 22804, Financial Code.
1. New section filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section 11343.4(b)(2) (Register 2022, No. 23). Transmission deadline specified in Government Code section 11346.4(b) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.
This database is current through 9/22/23 Register 2023, No. 38.
Cal. Admin. Code tit. 10, § 943, 10 CA ADC § 943
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