Characterization Of Litigation Funding Loan Proves Costly To Litigation Finance Lender

Yesterday, the California Supreme Court issued its opinion in Law Finance Group, LLC v. Key, 2023 WL 4168752.  The Court's opinion answers the question of whether the deadline for seeking vacatur of an arbitral award set forth in Section 1288.2 of...

Bill Would Prohibit Charging Certain Commercial Loan Fees To Small Businesses

California Senator Dave Min has authored an unfortunately numbered bill, SB 666, that would prohibit a "covered entity"  from charging the following fees to a small business in connection with a commercial financing transaction: 

California's Commercial Loan Disclosure Requirements May Be Unconstitutional And/Or Preempted

I have devoted several posts to a California commercial loan disclosure law that was enacted in 2018 - SB 1235 (Glazer). Although the bill became effective on January 1, 2019, lenders were not obligated to comply until the Department of Financial...

CFL Licensees Beware The Ides Of March

Lenders and brokers licensed under the California Finance Lenders Law must file an annual report by the Ides of March (i.e.,March 15) of each year.  Cal. Fin. Code § 22159.  This is a hard deadline and the Department of Financial Protection &...

Legislator Proposes To Expand CFL To Encompass "Commercial Brokers"

The California Financing Law currently requires the licensing of "finance lenders" and "brokers".   Cal. Fin. Code § 22100.  A "finance lender" is defined to include "any person who is engaged in the business of making consumer loans or making...

The DFPI's Subterranean "True Lender" Doctrine

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 origination, it (1) is named...

Judge Rules CFL Applies To Cryptocurrency Lending

The California Financing Law prohibits any person from engaging in the business of a "finance lender" without a license from the Department of Financial Protection & Innovation.  Cal. Fin. Code § 22100(a).  The CFL provides that a "'finance lender' ...

DFPI Reports $214.2 Billion In Commercial Loan Originations In 2021

The California Department of Financial Protection & Innovation recently issued is 2021 Annual Report of Operation of Finance Lenders, Brokers, and PACE Administrators Licensed Under the California Financing Law. The DFPI reports a nearly 12%...

What Is A Church? The CFL Tells How To Tell

The word "church" has an interesting ancestry.  It most likely began as a Germanic word that entered the Greek language and then moved on to English.  The Greek word, κυριακός, means for or of an owner, master or lord (κύριος means master or lord, as...

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