SFNet Legislative Alert - SFNet Submits Comment Letter to California DBO
In September 2018, Secured Finance Network (SFNet) published a notice informing members that, despite months of lobbying against the bill, Governor Brown of California had signed CA SB1235 into law. This law imposes new and potentially challenging disclosure requirements on certain commercial financing transactions (loans of $500,000 and below) in California, regardless of where the lender is located.
While our discussions with the sponsoring Senator’s chief of staff were successful in amending the bill to distinguish ABL and factoring from other commercial transactions that should require differentiated treatment, our proposed amendments outlining such differentiated treatment were not included in the final legislation and instead the work of creating specific regulations and compliance requirements for our industry was deferred to the CA Department of Business Oversight. The first draft of those regulations can be found here: https://dbo.ca.gov/regulations-legislation-opinions-releases/
SFNet has been working with the DBO as well as with other associations to obtain the best outcome for our members. SFNet submitted a comment letter to the DBO concerning the first draft. You can read that letter here.