California Civil Code

§ 1799.302

CIV § 1799.302 Effective Jan 1, 2025Div. 3 · Title 1.90 · Part 4

Statute text

A covered entity shall not charge any of the following in connection with a commercial financing transaction with a small business or small business owner:

(a)A fee for accepting or processing a payment required by the terms of the commercial financing contract as an automated clearinghouse transfer debit, except for a fee imposed for a payment by an automated clearinghouse transfer that fails because of insufficient funds in the transferor’s account.

(b)A fee for providing a small business with documentation prepared by the covered entity that contains a statement of the amount due to satisfy the remaining amount owed, including, but not limited to, interest accrued to the date the statement is prepared and a means of calculating per diem interest accruing thereafter.

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Legislative history

Amended by Stats. 2024, Ch. 194, Sec. 1. (SB 1521) Effective January 1, 2025.