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Course Details

This CLE webinar will provide a survey and comparison of state commercial finance disclosure requirements. The panel will review the similarities and differences of current state disclosure laws, highlight laws with high risk areas of enforcement, recommend strategies for revising loan documents and closing procedures to comply with these evolving state laws, and outline the applicability of these new laws to commercial finance companies nationwide.

Faculty

Description

Eleven states (California, Connecticut, Florida, Georgia, Kansas, Louisiana, Missouri, New York, Texas, Utah, and Virginia) have recently enacted disclosure laws for certain non-real property secured commercial financing transactions, and it is expected that other states will enact similar laws in the future. The growing patchwork of state disclosure laws requires defined commercial financing providers to furnish consumer-like disclosures as part of the transaction. Some states also require registration or annual reporting.

The new state disclosure laws are complex and the requirements in some states cover not only traditional business-purpose loans and lines of credit, but also other types of commercial financing, such as merchant cash advances, factoring, and lease financing. While there are some common themes in these state disclosure laws, there are also notable differences that finance companies must be aware of. 

For lenders that have multistate operations, navigating the patchwork of state disclosure laws presents compliance challenges as well as the risk of enforcement actions by state regulators. Revising and developing sound compliance and documentation policies to meet these ever-changing state requirements is essential.

Listen as our authoritative panel discusses the nuances and requirements of state commercial finance disclosure laws and their applicability to lenders nationwide.

Outline

I. Overview: how commercial finance disclosure laws are developing on the state level

II. Applicability of state commercial finance disclosure laws: types of lenders and transactions covered

III. CFPB's position on whether the Truth in Lending Act preempts state disclosure laws

IV. Common themes in state disclosure requirements

V. Comparing current state disclosure laws: similarities and differences

VI. High risk states and penalties for noncompliance

VII. Recommendations and strategies for revising documents, onboarding flows, and compliance practices to comply with the evolving patchwork of state laws

Benefits

The panel will discuss these and other key considerations:

  • How are commercial finance disclosure laws developing on the state level?
  • What types of commercial finance companies are exempt from the current state laws in place? Do the statutes apply to lenders located outside of states with disclosure laws?
  • What are the particular disclosures required under the rules in each state, and when must they be made to the borrower?
  • How should lenders adapt or revise their documents, onboarding flows, and compliance practices to comply with the evolving patchwork of state laws?