Florida Senate - 2023 COMMITTEE AMENDMENT
Bill No. CS for SB 1624
Ì5992807Î599280
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/19/2023 .
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The Appropriations Committee on Criminal and Civil Justice
(Brodeur) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 54 - 171
4 and insert:
5 (5) “Commercial financing facility” means a provider’s plan
6 for purchasing multiple accounts receivable from the recipient
7 over a period of time pursuant to an agreement that sets forth
8 the terms and conditions governing the use of the facility.
9 (6) “Commercial financing transaction” means a commercial
10 loan, an accounts receivable purchase transaction, or a
11 commercial open-end credit plan to the extent the transaction is
12 also a business purpose transaction. As used in this subsection,
13 the term “business purpose transaction” means a transaction the
14 proceeds of which are provided to a business or are intended to
15 be used to carry on a business and not to be used for personal,
16 family, or household purposes. For purposes of determining
17 whether a transaction is a business purpose transaction, the
18 provider may rely on any written statement of intended purpose
19 signed by the business. The statement may be a separate
20 statement or may be contained in an application, agreement, or
21 other document signed by the business or the business owner.
22 (7) “Commercial loan” means a loan to a business, whether
23 secured or unsecured.
24 (8) “Commercial open-end credit plan” means commercial
25 financing extended by any provider under a plan in which:
26 (a) The provider reasonably contemplates repeat
27 transactions.
28 (b) The amount of financing that may be extended to the
29 business during the term of the plan, up to any limit set by the
30 provider, is generally made available to the extent that any
31 outstanding balance is repaid.
32 (9) “Depository institution” means a Florida state
33 chartered bank, savings bank, credit union, or trust company, or
34 a federal savings or thrift association, bank, credit union,
35 savings bank, or thrift.
36 (10) “Provider” means a person who consummates more than
37 five commercial financing transactions with a business located
38 in this state in any calendar year. The term also includes a
39 person who enters into a written agreement with a depository
40 institution to arrange a commercial financing transaction
41 between the depository institution and a business via an online
42 lending platform administered by the person. The fact that a
43 provider extends a specific offer for a commercial financing
44 transaction on behalf of a depository institution may not be
45 construed to mean that the provider engaged in lending or
46 financing or originated that loan or financing.
47 559.9612 Scope of this part.—This part applies to any
48 commercial financing transaction consummated on or after January
49 1, 2024. This part does not apply to:
50 (1) A provider that is:
51 (a) A federally insured depository institution or an
52 affiliate or holding company of such institution; or
53 (b) A subsidiary or service corporation that is owned and
54 controlled by a federally insured depository institution or
55 under common ownership with such institution.
56 (2) A provider that is a lender regulated under the Farm
57 Credit Act of 1971, 12 U.S.C. ss. 2001 et seq.
58 (3) A commercial financing transaction that is:
59 (a) Secured by real property;
60 (b) A lease; or
61 (c) A purchase money obligation that is incurred as all or
62 part of the price of the collateral or for value given to enable
63 the business to acquire rights in or the use of the collateral
64 if the value is in fact so used.
65 (4) A commercial financing transaction in which the
66 recipient is a motor vehicle dealer or an affiliate of such a
67 dealer, or a vehicle rental company or an affiliate of such a
68 company, pursuant to a commercial loan or commercial open-end
69 credit plan of at least $50,000 or a commercial financing
70 transaction offered by a person in connection with the sale or
71 lease of products or services that such person manufactures,
72 licenses, or distributes, or whose parent company or any of its
73 directly or indirectly owned and controlled subsidiaries
74 manufactures, licenses, or distributes.
75 (5) A provider that is licensed as a money transmitter
76 under chapter 560 or licensed as a money transmitter by any
77 other state, district, territory, or commonwealth of the United
78 States.
79 (6) A provider that consummates no more than five
80 commercial financing transactions in this state in a 12-month
81 period.
82 (7) A commercial financing transaction of more than
83 $500,000.
84 559.9613 Disclosures.—
85 (1) A provider that consummates a commercial financing
86 transaction shall provide a written disclosure of the terms of
87 the commercial financing transaction as required by this part.
88 The disclosure must be provided at or before consummation of the
89 transaction. Only one disclosure must be provided for each
90 commercial financing transaction, and a disclosure is not
91 required as result of a modification, forbearance, or change to
92 a consummated commercial financing transaction.
93 (2) A provider shall provide a written disclosure of the
94 following information in connection with each commercial
95 financing transaction:
96 (a) The total amount of funds provided to the business
97 under the terms of the agreement.
98 (b) The total amount of funds disbursed to the business if
99 less than the amount specified in paragraph (a) as a result of
100 any fees deducted or withheld at disbursement, any amount paid
101 to the provider to satisfy a prior balance, and any amount paid
102 to a third party on behalf of the business.
103 (c) The total amount to be paid to the provider under the
104 terms of the agreement.
105 (d) The total dollar cost under the terms of the agreement,
106 calculated by finding the difference between the amount
107 specified in paragraph (a) and the amount specified in paragraph
108 (c).
109 (e)1. The manner, frequency, and amount of each payment; or
110 2. If the amount of the payments may vary, the provider
111 must instead disclose the manner and frequency of the payments,
112 the estimated amount of the initial payment, a description of
113 the methodology for calculating any variable payment, and the
114 circumstances under which payments may vary.
115 (f) Whether there are any costs or discounts associated
116 with prepayment, including a reference to the provision in the
117 agreement which creates the contractual rights of the parties
118 related to prepayment.
119 (3) A provider that consummates a commercial financing
120 facility may provide disclosures required by subsection (2)
121 which are based on an example of a transaction that could occur
122 under the agreement. The example must be based on an account
123 receivable total face amount owed of $10,000. Only one
124 disclosure is required for each commercial financing facility,
125 and a disclosure is not required as result of a modification,
126 forbearance, or change to the facility. A new disclosure is not
127 required each time accounts receivable are purchased under the
128 facility.
129
130 ================= T I T L E A M E N D M E N T ================
131 And the title is amended as follows:
132 Between lines 10 and 11
133 insert:
134 authorizing providers to provide specified required
135 disclosures when consummating a commercial financing
136 facility based on an example of a transaction;
137 specifying that disclosures are not required under
138 certain circumstances;