7-27-202. Disclosures for commercial financing transactions.

271 words·~1 min read·/ut/title-7/chapter-27/7-27-202

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/1/2024

(1)Before consummating a commercial financing transaction, a provider shall disclose the terms of the commercial financing transaction in accordance with this section and rules made by the commissioner.

(2)A provider shall disclose the following information in connection with each commercial financing transaction:

(a)the total amount of funds provided to the business under the terms of the commercial financing transaction;

(b)the total amount of funds disbursed to the business under the terms of the commercial financing transaction, if less than the amount described in Subsection (2)(a);

(c)the total amount to be paid to the provider under the terms of the commercial financing transaction;

(d)the total dollar cost of the commercial financing transaction, calculated by finding the difference between:

(i)the amount described in Subsection (2)(a); and

(ii)the amount described in Subsection (2)(c);

(i)the manner, frequency, and amount of each payment; or

(ii)if the amount of each payment may vary, the manner, frequency, and estimated amount of the initial payment; and

(f)a statement of whether there are any costs or discounts associated with prepayment under the commercial financing transaction, including a reference to the paragraph in the commercial financing transaction agreement that creates each cost or discount.

(3)The commercial financing transaction agreement shall include a description of the methodology for calculating any variable payment amount and the circumstances that may cause a payment amount to vary.

(4)The provisions of this section apply to a commercial financing transaction consummated on or after January 1, 2023.

Amended by Chapter 114 , 2024 General Session