Section 917 - Disclosure Formatting and Contents for All Other Transactions(a) Disclosures for commercial financing that does not meet the definition of a closed-end transaction, sales-based financing, commercial open-end credit plan, factoring transaction, lease financing, or asset-based lending transaction shall comply with the following formatting requirements. (1) The provider shall present the required 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, the following in the order listed and in one paragraph: (i) "This is how much funding [name of financer] will provide."(ii) If the amount financed is greater than the recipient funds: "Due to deductions or payments to others, the total funds that will be provided to you directly is [recipient funds]. For more information on what amounts will be deducted, please review the attached document "Itemization of Amount Financed.""(iii) If any portion of the amount financed will be used to pay down or pay off other amounts owed by the recipient that may change over time, and the amounts owed are known to the provider, the provider shall include a short explanation that the amount paid directly to the recipient may change if the amount owed for the recipient's other obligations changes.(iv) If, as a condition of the financing, a recipient's amounts owed to third parties must be paid down or off using funds from the amount financed, and an amount owed is not known to the provider, the provider shall also include a short explanation that the amount paid directly to the recipient may change based upon the required disbursements to satisfy other obligations.(3) The second row of the table shall include only the following information: (A) In the first column: "Annual Percentage Rate (APR)".(B) In the second column, the annual percentage rate calculated in accordance with section 940.(C) In the third column, the following in order:(i) "APR is the cost of your financing expressed as a yearly rate. APR incorporates the amount and timing of the funding you receive, and payments paid by you or on your behalf to [financer]. APR is not an interest rate."(ii) A short explanation of any assumptions made by the provider to calculate APR.(4) The third row of the table shall include only the following information: (A) In the first column: "Finance Charge".(B) In the second column, the 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 that is included in the finance charge.(5) The fourth row of the table shall include only the following information: (A) In the first column:(i) If, assuming the recipient makes minimum required payments under the contract, it is possible to calculate with certainty the total payments the recipient will make during the contract's term: "Total Payment Amount".(ii) If, assuming the recipient makes minimum required payments under the contract, it is not possible to calculate with certainty the total payments the recipient will make during the contract's term: "Total Estimated Payment Amount".(B) In the second column, the total dollar amount of payments or total dollar amount of estimated payments the recipient will make during the term of the contract if the recipient makes minimum required payments.(C) In the third column: (i) If, assuming the recipient makes minimum required payments under the contract, it is possible to calculate with certainty the total dollar amount of payments the recipient will make during the term of the contract: "This is the total dollar amount of payments you will make during the term of the contract."(ii) If, assuming the recipient makes minimum required payments under the contract, it is not possible to calculate with certainty the total dollar amount of payments the recipient will make during the term of the contract: "This is our estimate of the total dollar amount of payments you will make during the term of the contract."(6) The fifth row of the table shall include only the following information: (A) In the first column: "Payment".(B) The second and third columns shall be combined, and shall contain the following information in order: (i) The amount of each periodic payment, followed by a forward slash (/) and the frequency of each periodic payment. If the provider anticipates that the periodic payment amount will vary over the term of the transaction, the provider shall list all periodic payment amounts and the time periods when those payments apply. For example: Months 1-2:
$20/day
Months 3-7:
$40/day
(ii) The date and amount of any irregular payments listed in chronological order.(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 the first column: "Term".(B) In the 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 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 finance charges other than interest accrued since the recipient's last payment, the following statement, "If you pay off the financing faster than required, you still must pay all or a portion of the finance charge, up to $[maximum non-interest finance charge]."(B) In all other cases, the following statement: "If you pay off the financing faster than required, 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: (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 faster than required, you must pay additional fees of [amount and description of fees]."(B) In all other cases, the following statement: "If you pay off the financing faster than required, you will not be required to pay additional fees."(11) If the contract provides for periodic payments that are not monthly, the provider shall insert one additional row below the third row, and the additional row shall include only the following information: (A) In the first column: "Monthly Cost".(B) In the second column, the monthly cost that the recipient will pay over the term of the transaction. If the provider anticipates that the estimated monthly cost will vary over the term of the transaction, the provider shall list the estimated monthly costs and the time periods when those estimates apply. For example: Months 1-2:
$600/month
Months 3-6:
$1200/month
Month 7:
$1000/month
(C) In the third column, a short explanation of how the provider 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."(12) If the contract provides for multiple payment options, the provider shall insert one additional row above the first row, and in that row, all three columns shall be combined, resulting in a single cell. In that cell, the provider shall include a short explanation of how the provider has based the disclosure on the minimum payment permitted under the contract.Cal. Code Regs. Tit. 10, § 917
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, 22803 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.