HB 1027

Abstract

Financial institutions; sales-based financing providers. Requires a provider or broker of sales-based financing to register with the State Corporation Commission (the Commission) in accordance with procedures established by the Commission. The bill requires a sales-based financing provider to provide certain disclosures to a recipient at the time of extending a specific offer of sales-based financing. The bill requires that any cause of action arising under a contract or agreement for sales-based financing shall be brought in Commonwealth and any forum for any face-to-face arbitration proceedings required in such a contract or agreement are held in the jurisdiction where the recipient's principal place of business is located. The bill requires the provider to pay any arbitrators' expenses or fees or any other expenses or administrative fees incurred in the conduct of the arbitration proceedings. The bill prohibits a sales-based financing contract from containing a confession by judgment or any similar provision. The bill requires the Commission to adopt regulations to implement the provisions of the bill. The bill authorizes the Attorney General to seek to enjoin violations of the bill's provisions and to seek damages and other relief as allowed by law. The provisions of the bill apply to sales-based financing contracts or agreements entered into on or after July 1, 2022.

Financial institutions; sales-based financing providers. Requires a provider or broker of sales-based financing to register with the State Corporation Commission (the Commission) in accordance with procedures established by the Commission. The bill requires a sales-based financing provider to provide certain disclosures to a recipient at the time of extending a specific offer of sales-based financing. The bill requires that any cause of action arising under a contract or agreement for sales-based financing shall be brought in Commonwealth and any forum for any face-to-face arbitration proceedings required in such a contract or agreement are held in the jurisdiction where the recipient's principal place of business is located. The bill requires the provider to pay any arbitrators' expenses or fees or any other expenses or administrative fees incurred in the conduct of the arbitration proceedings. The bill prohibits a sales-based financing contract from containing a confession by judgment or any similar provision. The bill also prohibits a sales-based financing provider or broker from engaging in any unfair, misleading, deceptive or fraudulent acts in the conduct of its business. The bill requires the Commission to adopt regulations to implement the provisions of the bill. The bill authorizes the Attorney General to seek to enjoin violations of the bill's provisions and to seek damages and other relief as allowed by law. The provisions of the bill apply to sales-based financing contracts or agreements entered into on or after July 1, 2022.

Financial institutions; sales-based financing providers. Requires a provider of sales-based financing to register with the State Corporation Commission (the Commission) in accordance with procedures established by the Commission and, unless such provider is organized under the laws of Virginia, to obtain a certificate of authority to transact business in the Commonwealth. The bill requires a sales-based financing provider to provide certain disclosures to a recipient at the time of extending a specific offer of sales-based financing. The bill requires that any cause of action arising under a contract or agreement for sales-based financing shall be brought in the jurisdiction where the recipient's principal place of business is located and any forum for any arbitration proceedings required in such a contract or agreement are held in the jurisdiction where the recipient's principal place of business is located. The bill requires the provider to pay any arbitrators' expenses or fees or any other expenses or administrative fees incurred in the conduct of the arbitration proceedings. Any provision in the contract or agreement mandating that such action be brought outside such jurisdiction shall be unenforceable.The bill requires the Commission to adopt regulations to implement the provisions of the bill and provides that if the Commission determines that a person is in violation of or has violated the disclosure provisions, the Commission may refer the information to the Attorney General and may request that the Attorney General investigate such violations.