News & Analysis as of

Financing Department of Financial Protection and Innovation (DFPI)

Manatt, Phelps & Phillips, LLP

California Commercial Financing Registration Requirement Passes Senate

Increased regulation of commercial financing shows no signs of stopping. California SB 1482, which would require commercial financing providers and brokers to register with the California Department of Financial Protection...more

Orrick, Herrington & Sutcliffe LLP

Federal court grants California DFPI motion for summary judgment on commercial financing disclosure requirements

Recently, the California DFPI announced it was granted a summary judgment by a federal court to uphold the DFPI’s commercial financing disclosure requirements applicable to small businesses as implemented by SB 1235,...more

Orrick, Herrington & Sutcliffe LLP

District Court grants motion for summary judgment to DFPI in commercial financing disclosure case

On December 4, the U.S. District Court for the Central District of California granted the California DFPI’s motion for summary judgment in Small Business Finance Association v. Clothilde Hewlett, which challenged the DFPI’s...more

Kilpatrick

New California Regulation Extends UDAAP Prohibitions to Commercial Financing

Kilpatrick on

While federal and state laws have long prohibited providers of financial services from engaging in unfair, deceptive, and abusive acts and practices (“UDAAP”), such prohibitions typically apply only to consumer-purpose...more

Shipkevich PLLC

California DFPI Proposes Regulation to Implement Registration Requirements for Entities Covered Under California Consumer...

Shipkevich PLLC on

The California Consumer Financial Protection Law (“CCFPL”), established in September of 2020 under Governor Newsom, augmented the Department of Financial Protection & Innovation’s (“DFPI”) authoritative ability by increasing...more

Allen Matkins

The DFPI's Subterranean "True Lender" Doctrine

Allen Matkins on

Some readers may recall that two years ago the Office of the Comptroller of the Currency adopted a "true lender" rule.  That rule  The rule specified that a bank makes a loan and is the true lender if, as of the date of...more

Morrison & Foerster LLP

Square Peg, Round Hole: MCA Disclosures Under the California Commercial Financing Disclosure Regulations

In the third in our series on the California Commercial Financing Disclosure Regulations, we focus on the disclosure requirements for merchant cash advances (MCAs)....more

Morrison & Foerster LLP

Look Inside: California Commercial Financing Disclosure Regulations

On June 9, 2022, the California Office of Administrative Law approved the Department of Financial Protection and Innovation’s final regulations implementing California’s first-of-its-kind commercial financing disclosure law....more

Troutman Pepper

California Approves Final Commercial Financing Disclosure Regulations and Sets Compliance Deadline

Troutman Pepper on

On June 9, California’s Office of Administrative Law approved commercial financing disclosure regulations (Regulations) which require consumer-like disclosures for certain commercial financing products such as small business...more

Allen Matkins

DFPI Issues Report On California Finance Lenders

Allen Matkins on

As 2021 begins drawing to close, the Department of Financial Protection & Innovation has released its 2020 Annual Report of Finance Lenders, Brokers, and PACE Administrators Licensed Under the California Financing Law. ...more

Goodwin

SEC Issues No-Action Relief On Registered Funds’ Custody Of Loan Interests

Goodwin on

In this Issue. The U.S. Securities and Exchange Commission (SEC) was very active this week, having (i) issued no-action relief allowing registered funds to engage in self-custody of interests in loans that are originated,...more

Allen Matkins

DFPI To Hold Public Hearing Today On Proposed Commercial Loan Disclosures

Allen Matkins on

Two years ago, California enacted SB 1235 (2018 Cal. Stats. ch. 1011) requiring providers of commercial financing to disclose certain information to the businesses seeking financing.  The Department of Financial Protection...more

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