Section 951 - Factoring; Example Transaction(a) For factoring transactions where the finance charge, annual percentage rate, or term varies based upon the type of the legally enforceable claim assigned, where the provider offers the recipient an agreement that describes the general terms and conditions of the commercial financing transactions that will occur under the agreement, and where the financer provides disclosures based upon an example of a transaction that could occur under the agreement under section 22803 of the code, the provider shall give the recipient a separate disclosure table under section 913 for each type of legally enforceable claim.(b) Maximum draw amount. If the agreement between a financer and recipient permits an advance of funds to the recipient up to and including an approved advance limit for legally enforceable claims that have not yet been paid by the account debtor, the example transaction used in making the disclosures shall be equal to the approved advance limit.(c) No maximum draw amount. If the agreement between a provider and recipient does not specify an approved advance limit for legally enforceable claims that have not yet been paid by the account debtor, the example transaction used in making the disclosures shall assume the recipient has drawn $10,000.Cal. Code Regs. Tit. 10, § 951
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.