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§ 921. Thresholds for Disclosure.

10 CA ADC § 921Barclays 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 § 921
§ 921. Thresholds for Disclosure.
(a) For the purpose of determining whether the amount of a commercial financing offer is equal to or less than $500,000, a provider shall:
(1) For an open-end credit plan, use the approved credit limit.
(2) For an asset-based lending transaction:
(A) Use the approved credit limit if transaction meets all of the following requirements:
(i) The provider offers the recipient an agreement that describes the general terms and conditions of the commercial financing transaction that will occur under the agreement;
(ii) The approved credit limit exceeds $500,000; and
(iii) The parties to the asset-based lending transaction agree in writing that an amount exceeding $500,000 is reasonably expected to be advanced to the recipient and outstanding at some point during the agreement and such agreement is made in writing before the execution of the financing agreement, before any amendment to an agreement entered into before the effective date of these regulations, or before any amendment increasing the approved credit limit for a consummated financing agreement to an amount exceeding $500,000.
(B) If the asset-based lending transaction does not meet all of the requirements listed in subdivision (a)(2)(A) above, the commercial financing offer shall be considered less than or equal to $500,000.
(3) For a factoring transaction,
(A) Use the approved advance limit if the transaction meets all of the following requirements:
(i) The provider offers the recipient an agreement that describes the general terms and conditions of the commercial financing transaction that will occur under the agreement;
(ii) The approved advance limit exceeds $500,000; and
(iii) The parties to the factoring transaction agree in writing that an amount exceeding $500,000 is reasonably expected to be advanced to the recipient and outstanding for legally enforceable claims that have not yet been paid at some point during the agreement and such agreement is made in writing before the execution of the financing agreement, before any amendment to an agreement entered into before the effective date of these regulations, or before any amendment increasing the approved advance limit for a consummated agreement to an amount exceeding $500,000.
(B) If the factoring transaction does not meet all of the requirements listed in subdivision (a)(3)(A) above, the commercial financing offer shall be considered less than or equal to $500,000.
(4) In all other transactions, use the amount financed.

Credits

Note: Authority cited: Sections 321 and 22804, Financial Code. Reference: Sections 22800 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 4/12/24 Register 2024, No. 15.
Cal. Admin. Code tit. 10, § 921, 10 CA ADC § 921
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