Section 1060 - DefinitionsIn this article:
(a) "Average" refers to arithmetic mean.(b) "Commercial financing" has the same meaning as in Financial Code section 22800, subdivision (d).(c) "Commercial financing transaction" means a consummated commercial financing transaction for which a disclosure is provided in accordance with California Code of Regulations, title 10, section 920, subdivision (a).(d)(1) "Covered entity" means a small business, nonprofit, or family farm whose activities are principally directed or managed from California.(2) For the purpose of determining whether activities are "principally directed or managed from California," a covered provider may rely on any relevant written representation by the small business, nonprofit, or family farm, including a business address provided in any application or agreement for commercial financing or other financial product or service.(e)(1) "Covered provider" means any person engaged in the business of offering or providing commercial financing or another financial product or service to a covered entity.(2) "Covered provider" does not include any person exempted from division 24 of the Financial Code under Financial Code section 90002.(f) "Family farm" means a business operation:(1) That produces agricultural commodities for sale in sufficient quantities so that it is recognized as a farm rather than a rural residence.(2) In which a substantial amount of physical operating labor is provided by, the majority of day-to-day, operating decisions are made by, and all strategic management decisions are made by: (A) the consumer, with input and assistance allowed from relatives of the consumer, in the case of an individual consumer seeking credit, or(B) the members responsible for operating the farm, in the case of an entity seeking credit.(3) That may use full-time hired labor in amounts only to supplement family labor.(4) That may use reasonable amounts of temporary labor for seasonal-peak workload periods or intermittently for labor-intensive activities.(g) "Financial product or service" has the same meaning as in Financial Code section 90005, subdivision (k), except that "consumer" in such definition also includes corporation, business trust, partnership, proprietorship, syndicate, limited liability company, association, joint stock company, and any other organization or legal or commercial entity and "consumer financial product or service" in such definition also includes a financial product or service that is offered or provided for use primarily for other than personal, family, or household purposes.(h) "Nonprofit" means any organization not organized for profit and no part of the net earnings of which inures to the benefit of any individual or entity.(i) "Small business" means a business entity organized for profit with annual gross receipts of no more than $16,000,000 or the annual gross receipt level as biennially adjusted by the Department of General Services in accordance with Government Code section 14837, subdivision (d)(3), whichever is greater. For the purpose of determining a business entity's annual gross receipts, a covered provider may rely on any relevant written representation by the business entity, including information provided in any application or agreement for commercial financing or other financial product or service.(j) Terms defined in Financial Code section 90005 but not defined in this article shall have the meanings ascribed to them in section 90005.Cal. Code Regs. Tit. 10, § 1060
1. New subchapter 4 (article 4), article 4 (sections 1060-1062) and section filed 8-2-2023; operative 10-1-2023 (Register 2023, No. 31). For prior history of subchapter 4, see Register 97, No. 34. Note: Authority cited: Section 90009, Financial Code. Reference: Sections 90005 and 90009, Financial Code.
1. New subchapter 4 (article 4), article 4 (sections 1060-1062) and section filed 8-2-2023; operative 10/1/2023 (Register 2023, No. 31). For prior history of subchapter 4, see Register 97, No. 34.