Conn. Gen. Stat. § 36a-863

Current with legislation from the 2024 Regular and Special Sessions.

Section 36a-863 - Disclosures required when specific offer extended

A provider shall provide to a recipient, when the provider extends a specific offer for sales-based financing, the following disclosures in a format prescribed by the Banking Commissioner:

(1) The total amount of the commercial financing.

(2) The disbursement amount, which is the amount paid to the recipient or on the recipient's behalf, excluding any finance charges that are deducted or withheld at disbursement.

(3) The finance charge.

(4) The total repayment amount, which is the disbursement amount plus the finance charge.

(5) The estimated time period required for the periodic payments to equal the total repayment amount.

(6) The payment amounts as follows:

(A) For payment amounts that are fixed, the payment amounts and frequency; or

(B) For payment amounts that are variable, a payment schedule or a description of the method used to calculate the amounts and frequency of payments, and the amount of the average projected payments per month.

(7) A description of all other potential fees and charges not included in the finance charge, including, but not limited to, draw fees, late payment fees and returned payment fees.

(8)

(A) Any finance charge the recipient will be required to pay if the recipient elects to pay off or refinance the commercial financing prior to full repayment, other than interest accrued since the recipient's last payment, and the percentage of any unpaid portion of such finance charge and the maximum dollar amount of such finance charge the recipient will be required to pay; and

(B) Any additional fees, not already included in the finance charge, the recipient will be required to pay if the recipient elects to pay off or refinance the commercial financing prior to full repayment.

(9) A description of collateral requirements or security interests, if any.

(10) Whether, in connection with the specific offer of sales-based financing, the provider will pay compensation directly to a commercial financing broker out of the financed amount and, if so, the amount of such compensation.

Conn. Gen. Stat. § 36a-863

Added by P.A. 23-0201,S. 3 of the Connecticut Acts of the 2023 Regular Session, eff. 7/1/2024.