Section 915 - Lease Financing Disclosure Formatting and Contents(a) Disclosures for lease financing provided in accordance with section 22802 of the code shall comply with the following requirements. (1) The provider shall present the disclosures in a table consisting of eight rows and three columns.(2) The first row of the table shall include only the following information: (A) In the first column: "Funding Provided".(B) In the second column, the amount financed.(C) In the third column: "This is how much funding [name of financer] will provide."(3) The second row of the table shall include only the following information: (A) In first column: "Annual Percentage Rate (APR)".(B) In second column, the annual percentage rate calculated in accordance with section 940.(C) In the third column: "APR is the cost of your financing expressed as a yearly rate. APR incorporates the amount and timing of the funding you receive, fees you pay, the periodic payments you make, and the anticipated cost for you to acquire the property at the end of the lease term.
Your APR is not an interest rate."
(4) The third row of the table shall include only the following information: (A) In first column: "Finance Charge".(B) In second column, the total finance charge, calculated in accordance with section 943.(C) In the third column, the provider's calculation of the finance charge, with the amount and description of each expense included in the finance charge.(5) The fourth row of the table shall include only the following information:(A) In the first column: "Total Payment Amount".(B) In the second column, the total dollar amount of payments the recipient will make during the term of the contract if the recipient makes minimum required payments and exercises the purchase option under the agreement.(C) In the third column: "This is the total dollar amount of payments you will make during the term of the contract (including the cost of the purchase option)."(6) The fifth row of the table shall include only the following information: (A) In the first column: "Payment".(B) If periodic payments during the term of the transaction will not vary: (i) In the second column, the amount of each periodic payment followed by a forward slash (/) and the frequency of each periodic payment (e.g., month, day, or other period), followed by the date and amount of any irregular payments listed in chronological order, followed by the price of the purchase option.(ii) In the third column, a short explanation of the payment and purchase option. For example: "This is how much you will pay each month, the $300 maintenance fee due 12 months after you receive funding, and the purchase price you may pay at the end of the lease to acquire the property." The provider may also include a short explanation describing when each payment will become due. For example: "Your monthly payments are due on the 1st day of every month."(C) If periodic payments during the term of the transaction vary, the second and third column in the fourth row shall be combined and the provider shall list the periodic payment amounts and when each amount will become due, followed by the date and amount of any irregular payments listed in chronological order, followed by the price of the purchase option. For example: Months 1-12: $600/month
Months 13-24: $1200/month
Maintenance Fee Due 2/1/2021: $500.
Maintenance Fee Due 8/1/2022: $300.
Purchase Price: $1000.
Or
Payments 1-23: $600/month
Payment 24: $2000.
Maintenance Fee Due 2/1/2021: $500.
Maintenance Fee Due 8/1/2022: $300.
Purchase Price: $1000.
(7) The sixth row of the table shall include no information in the third column, and the remaining columns shall include only the following information: (A) In first column: "Term".(B) In second column, the term of the transaction.(8) In the first column, the seventh and eighth rows shall be combined and shall include the following language: "Prepayment".(9) In the seventh row, the second and third columns shall be combined and include only: (A) If, at any time during the term of the transaction, prepayment of the outstanding balance due will require the recipient to pay finance charges other than interest accrued since the recipient's last payment, the following statement: "If you pay off the financing before the end of the term, you will be required to pay all or a portion of the finance charge other than accrued and unpaid interest, up to $[maximum non-interest finance charge]."(B) In all other cases, the following statement: "If you pay off the financing before the end of the term, you will not be required to pay any portion of the finance charge other than unpaid interest accrued."(10) In the eighth row, the second and third columns shall be combined and shall include only:(A) If, at any time during the term of the transaction, prepayment of the outstanding balance due will require the recipient to pay additional fees and charges not included in the finance charge, the following statement: "If you pay off the financing before the end of the term, you must pay additional fees or charges, including" followed by a description of any prepayment charges.(B) In all other cases, the following statement: "If you pay off the financing before the end of the term, you will not be required to pay additional fees or charges."(11) If the contract provides for periodic payments that are not monthly, the provider shall insert one additional row below the fourth row, and the additional row shall include only the following information: (A) In the first column: "Average Monthly Cost".(B) In the second column, the average monthly cost that the recipient will pay over the term of the transaction.(C) In the third column, language explaining that the recipient will not be required to make monthly payments and explaining how the provider has calculated the monthly cost. For example: "Although you do not make payments on a monthly basis, this is our calculation of your average monthly cost based upon the payment amounts disclosed below."Cal. Code Regs. Tit. 10, § 915
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. Note: Authority cited: Sections 321 and 22804, Financial Code. Reference: Sections 22800, 22802 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). 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.