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§ 952. Duties of Financers and Brokers.

10 CA ADC § 952Barclays Official California Code of RegulationsEffective: December 9, 2022

Barclays California Code of Regulations
Title 10. Investment
Chapter 3. Commissioner of Financial Protection and Innovation (Refs & Annos)
Subchapter 3. Commercial Financing Disclosures.
Effective: December 9, 2022
10 CCR § 952
§ 952. Duties of Financers and Brokers.
(a) A financer shall:
(1) Provide a copy of compliant disclosures to a broker, whenever a financer provides a broker with a specific commercial financing offer.
(2) Maintain a copy of the evidence of transmission of the disclosures provided by a broker to the financer in compliance with subdivision (b) for a period of at least four years following the date that the disclosure is presented to the recipient.
(3) Develop procedures reasonably designed to ensure that recipients receive the disclosures provided pursuant to subdivision (a)(1) of this section at the time that a broker provides a specific commercial financing offer to a recipient. These procedures may include:
(A) Contractual requirements that brokers timely provide to the financer documentation of transmission of the disclosure (including timing of transmission) to the recipient;
(B) Timely investigation of facts that would give a financer reasonable notice that a broker has not provided disclosures to recipients as required by subdivision (b); and
(C) Discontinuation of relationships with any broker who the financer has found to have engaged in a pattern of noncompliance with subdivision (b) of this section.
(b) Following receipt of the disclosures required by subdivision (a)(1) of this section, and before communicating a specific commercial financing offer to a recipient, a broker shall transmit the unaltered disclosures received from the financer to the recipient. After a broker transmits disclosures to the recipient, the broker shall provide evidence of transmission of the disclosures to the financer, including the time of transmission.
(c) A broker shall not provide a specific commercial financing offer to a recipient without:
(1) Complying with subdivision (b); or
(2) Confirmation from the financer that the disclosures required by this subchapter have been provided to the recipient.
(d) A provider shall maintain a copy of each disclosure that it generates pursuant to this subchapter for a period of at least four years following the date that the disclosure is presented to the recipient or provided to a broker.
(e) A provider may, in lieu of compliance with subdivision (a), provide a copy of compliant disclosures directly to a recipient any time the financer provides a broker with a specific commercial financing offer for the recipient.
(f) This section shall not be construed to:
(1) Require a broker to evaluate the accuracy of the disclosures provided by the financer;
(2) Create any liability for a broker if the disclosures that the financer provides do not comply with this subchapter or Division 9.5 of the code; or
(3) Limit any liability that may arise when a broker makes representations concerning the commercial financing.

Credits

Note: Authority cited: Sections 321 and 22804, Financial Code. Reference: Sections 22800, 22802, 22803 and 22804, Financial Code.
History
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 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 952, 10 CA ADC § 952
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