7-27-202. Disclosures for commercial financing transactions.
(1) Before consummating a commercial financing transaction, a provider shall disclose the terms of the commercial financing transaction in accordance with this section and rules made by the commissioner.
(2) A provider shall disclose the following information in connection with each commercial financing transaction: the total amount of funds provided to the business under the terms of the commercial financing transaction; the total amount of funds disbursed to the business under the terms of the commercial financing transaction, if less than the amount described in Subsection (2)(a); the total amount to be paid to the provider under the terms of the commercial financing transaction; the total dollar cost of the commercial financing transaction, calculated by finding the difference between: the amount described in Subsection (2)(a); and the amount described in Subsection (2)(c); the manner, frequency, and amount of each payment; or if the amount of each payment may vary, the manner, frequency, and estimated amount of the initial payment; and a statement of whether there are any costs or discounts associated with prepayment under the commercial financing transaction, including a reference to the paragraph in the commercial financing transaction agreement that creates each cost or discount.
(3) The commercial financing transaction agreement shall include a description of the methodology for calculating any variable payment amount and the circumstances that may cause a payment amount to vary.
(4) The provisions of this section apply to a commercial financing transaction consummated on or after January 1, 2023.