EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0509*
SENATE BILL 509
I1 4lr1804
SB 496/23 – FIN CF HB 574
By: Senator Kramer
Introduced and read first time: January 24, 2024
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 17, 2024
CHAPTER ______
AN ACT concerning 1
Commercial Financing – Small Business Truth in Lending Act 2
FOR the purpose of regulating commercial financing transactions, including by 3
establishing requirements related to disclosures, calculations of annual percentage 4
rates, terms of repayments, and other related items, and the extension of specific 5
offers; and generally relating to commercial financing transactions. 6
BY adding to 7
Article – Financial Institutions 8
Section 12–1201 through 12–1214 to be under the new subtitle “Subtitle 12. 9
Commercial Financing” 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2023 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Financial Institutions 15
SUBTITLE 12. COMMERCIAL FINANCING. 16
12–1201. 17
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19 2 SENATE BILL 509
(B) (1) “CLOSED–END FINANCING” MEANS A CLOSED –END EXTENSION OF 1
CREDIT, SECURED OR UNSECURED , INCLUDING EQUIPMENT FINANCING, THAT: 2
(I) DOES NOT MEET THE DEF INITION OF A LEASE U NDER 3
ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE; AND 4
(II) THE PROCEEDS OF WHICH A RECIPIENT DO ES NOT INTEND 5
TO USE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSE S. 6
(2) “CLOSED–END FINANCING ” INCLUDES FINANCING T HAT HAS AN 7
ESTABLISHED PRINCIPA L AMOUNT AND DURATIO N. 8
(C) “COMMERCIAL FINANCING ” MEANS OPEN –END FINANCING , 9
CLOSED–END FINANCING , SALES–BASED FINANCING , A FACTORING TRANSACT ION, 10
OR ANOTHER FORM OF F INANCING, THE PROCEEDS OF WHIC H THE RECIPIENT DOES 11
NOT INTEND TO USE PR IMARILY FOR PERSONAL , FAMILY, OR HOUSEHOLD 12
PURPOSES. 13
(D) “FACTORING TRANSACTION ” MEANS AN ACCOUNTS RE CEIVABLE 14
PURCHASE TRANSACTION : 15
(1) THAT INCLUDES AN AGRE EMENT TO PURCHASE , TRANSFER, OR 16
SELL A LEGALLY ENFOR CEABLE CLAIM FOR PAY MENT HELD BY A RECIP IENT FOR 17
GOODS THE RECIPIENT HAS SUPPLIED OR SERV ICES THE RECIPIENT H AS RENDERED 18
THAT HAVE BEEN ORDER ED BUT FOR WHIC H PAYMENT HAS NOT BE EN MADE; AND 19
(2) THE PROCEEDS OF WHICH THE RECIPIENT DOES N OT INTEND TO 20
USE PRIMARILY FOR PE RSONAL, FAMILY, OR HOUSEHOLD PURPOSE S. 21
(E) (1) “FINANCE CHARGE ” MEANS THE COST OF CO MMERCIAL 22
FINANCING REPRESENTE D AS A DOLLAR AMOUNT . 23
(2) “FINANCE CHARGE ” INCLUDES: 24
(I) A CHARGE PAYABLE DIREC TLY OR INDIRECTLY BY A 25
RECIPIENT AND IMPOSE D DIRECTLY OR INDIRE CTLY BY A PROVIDER A S AN 26
INCIDENT TO OR A CON DITION OF THE EXTENS ION OF COMMERCIAL FI NANCING; 27
(II) A CHARGE THAT WOULD BE INCLUDED UNDER 12 C.F.R. § 28
1026.4 IF A TRANSACTION WER E SUBJECT TO 12 C.F.R. § 1026.4; AND 29
(III) ANY ADDITIONAL CHARGE S DETERMINED BY THE 30
COMMISSIONER . 31 SENATE BILL 509 3
(F) (1) “OPEN–END FINANCING ” MEANS AN AGREEMENT F OR ONE OR 1
MORE EXTENSIONS OF SECURED OR UNSECU RED OPEN –END CREDIT , THE 2
PROCEEDS OF WHICH A RECIPIENT DOES NOT I NTEND TO USE PRIMARI LY FOR 3
PERSONAL, FAMILY, OR HOUSEHOLD PURPOSE S. 4
(2) “OPEN–END FINANCING ” INCLUDES CREDIT EXTE NDED BY A 5
PROVIDER UNDER A PLA N IN WHICH: 6
(I) THE PROVIDER REASONABLY CONTEMPLATES REPEATE D 7
TRANSACTIONS ; 8
(II) THE PROVIDER MAY IMPO SE A FINANCE CHARGE ON AN 9
OUTSTANDING UNPAID B ALANCE; AND 10
(III) THE AMOUNT OF CREDIT THAT MAY BE EXTENDED TO A 11
RECIPIENT DURING THE TERM OF THE PLAN , UP TO A LIMIT THAT THE PROVIDER 12
SETS, IS GENERALLY MADE AV AILABLE TO THE EXTEN T THAT ANY OUTSTANDI NG 13
BALANCE IS REPAID . 14
(G) (1) “PROVIDER” MEANS A PERSON THAT EXTENDS A SPECIFIC O FFER 15
OF COMMERCIAL FINANC ING TO A RECIPIENT . 16
(2) “PROVIDER” INCLUDES A PERSON TH AT SOLICITS AND PRESENTS 17
A SPECIFIC OFFER OF COMMERCIAL FINANCING ON BEHALF OF A THIRD PARTY. 18
(H) (1) “RECIPIENT” MEANS A PERSON , OR THE PERSON ’S AUTHORIZED 19
REPRESENTATIVE , THAT APPLIES FOR COM MERCIAL FINANCING AN D IS MADE A 20
SPECIFIC OFFER OF CO MMERCIAL FINANC ING BY A PROVIDER . 21
(2) “RECIPIENT” DOES NOT INCLUDE A P ERSON ACTING AS A 22
BROKER. 23
(I) (1) “SALES–BASED FINANCING ” MEANS A TRANSACTION : 24
(I) THAT IS REPAID BY A RECIPIENT TO A PROVID ER OVER TIME 25
AS A PERCENTAGE OF S ALES OR REVENUE , IN WHICH THE PAYME NT AMOUNT MAY 26
INCREASE OR DECREASE ACCORDING TO THE VOL UME OF SALES MADE OR REVENUE 27
RECEIVED BY THE RECI PIENT; AND 28
(II) THE PROCEEDS OF WHICH THE RECIPIENT DOES N OT 29
INTEND TO USE PRIMAR ILY FOR PERSONAL , FAMILY, OR HOUSEHOLD PURPOSE S. 30
4 SENATE BILL 509
(2) “SALES–BASED FINANCING ” INCLUDES A TRANSACTI ON 1
CONTAINING A TRUE –UP MECHANISM UNDER W HICH THE FINANCING I S REPAID AS 2
A FIXED PAYMENT BUT PROVIDES FOR A RECON CILIATION PROCESS TH AT ADJUSTS 3
THE PAYMENT TO AN AM OUNT THAT IS A PERCE NTAGE OF SALES OR RE VENUE. 4
(J) “SPECIFIC OFFER ” MEANS THE TERMS OF C OMMERCIAL FINANCING 5
THAT ARE QUOTED TO A RECIPIENT, BASED ON INFORMATION OBTAINED FROM OR 6
ABOUT THE RECIPIENT , WHICH IF ACCEPTED BY THE RECIPIENT ARE BI NDING ON A 7
PROVIDER, AS APPLICABLE, SUBJECT TO REQUIREME NTS STATED IN THE TERMS OF 8
THE COMMERCIAL FINAN CING. 9
12–1202. 10
THIS SUBTITLE DOES NO T APPLY TO: 11
(1) (I) A FEDERAL OR STATE BANK, CREDIT UNION , OR SAVINGS 12
ASSOCIATION; OR 13
(II) A SUBSIDIARY OR AFFILI ATE OF AN ORGANIZATI ON LISTED 14
IN ITEM (I) OF THIS ITEM; 15
(2) A PERSON ACTING AS A T ECHNOLOGY SERVICES P ROVIDER TO AN 16
ENTITY EXEMPT UNDER THIS SECTION FOR USE AS PART OF THE ENTIT Y’S 17
COMMERCIAL FINANCING PROGRAM IF THE PERSO N DOES NOT HAVE AN I NTEREST, 18
ARRANGEMENT , OR AGREEMENT TO PURC HASE ANY INTEREST IN THE COMMERCIAL 19
FINANCING EXTENDED B Y THE ENTITY IN CONN ECTION WITH THE COMM ERCIAL 20
FINANCING PROGRAM ; 21
(3) A LENDER REGULATED UND ER THE FEDERAL FARM CREDIT ACT; 22
(4) A COMMERCIAL FINANCING TRANSACTION SECURED BY REAL 23
PROPERTY; 24
(5) A LEASE AS DEFINED IN ARTICLE 2A OF THE UNIFORM 25
COMMERCIAL CODE; 26
(6) A PROVIDER OR OTHER PE RSON WHO MAKES NOT M ORE THAN 27
FIVE COMMERCIAL FINA NCING TRANSACTIONS I N THE STATE IN A 12–MONTH 28
PERIOD; 29
(7) A COMMERCIAL FINANCING TRANSACTION MORE THA N 30
$2,500,000; 31
(8) A COMMERCIAL FINANCING TRANSACTION : 32 SENATE BILL 509 5
(I) IN WHICH THE RECIPIEN T IS: 1
1. A DEALER, OR AN AFFILIATE OF A DEALER, AS 2
DEFINED IN § 11–111 OF THE TRANSPORTATION ARTICLE; OR 3
2. A RENTAL VEHICLE COMPA NY, OR AN AFFILIATE OF A 4
RENTAL VEHICLE COMPA NY, AS DEFINED IN § 18–108 OF THE TRANSPORTATION 5
ARTICLE; AND 6
(II) MADE UNDER A COMMERCI AL FINANCING AGREEME NT OR 7
COMMERCIAL OPEN –END CREDIT PLAN OF A T LEAST $50,000, INCLUDING A 8
COMMERCIAL LOAN MADE IN ACCORDANCE WITH T HE COMMERCIAL FINANC ING 9
TRANSACTION ; OR 10
(9) A COMMERCIAL FINANCING TRANSACTION THAT IS A FACTORING 11
TRANSACTION , AN ADVANCE , OR A SIMILAR TRANSAC TION OF ACCOUNTS 12
RECEIVABLE OWED TO A HEALTH CARE PROVIDER BECAUSE OF A PATIENT ’S 13
PERSONAL INJURY TREA TED BY THE HEALTH CA RE PROVIDER; OR 14
(10) A PREMIUM FINANCE AGRE EMENT AS DEFINED IN § 23–101 OF 15
THE INSURANCE ARTICLE. 16
12–1203. 17
(A) EXCEPT AS PROVIDED IN § 12–1207 OF THIS SUBTITLE , FOR PURPOSES 18
OF THIS SUBTITLE, AN ANNUAL PERCENTAGE RATE SHALL BE: 19
(1) EXPRESSED AS A YEARLY RATE, INCLUDING ALL FEES AND 20
FINANCE CHARGES ; AND 21
(2) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH IN 22
LENDING ACT. 23
(B) IN ADDITION TO THE RE QUIREMENTS OF SUBSEC TION (A)(2) OF THIS 24
SECTION, AN ANNUAL PERCENTAGE RATE SHALL BE CALCUL ATED BASED ON THE 25
ESTIMATED TERM OF R EPAYMENT AND THE PRO JECTED PERIODIC PAYM ENT 26
AMOUNTS OF A COMMERC IAL FINANCING TRANSA CTION, REGARDLESS OF WHETHE R 27
FEDERAL LAW OR REGUL ATION WOULD REQUIRE AN ANNUAL PERCENTAGE RATE TO 28
BE CALCULATED FOR A CERTAIN TRANSACTION . 29
(C) THIS SECTION MAY NOT BE CONSTRUED TO IMPOSE ANY LIABILITY ON A 30
PROVIDER THAT CHARGE S AN ANNUAL PERCENTA GE RATE THAT DIFFERS FROM THE 31
ESTIMATED ANNUAL PER CENTAGE RATE DISCLOS ED BY THE PROVIDER I N 32 6 SENATE BILL 509
ACCORDANCE WITH THIS SUBTITLE OR ANY REGU LATION ADOPTED UNDER THIS 1
SUBTITLE. 2
12–1204. 3
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 4
INDICATED. 5
(2) “ESTIMATED TERM OF REP AYMENT” MEANS THE AMOUNT OF 6
TIME REQUIRED FOR TH E PERIODIC PAYMENTS MADE BY A RECIPIENT IN A 7
SALES–BASED FINANCING TRAN SACTION TO EQUAL THE TOTAL AMOUN T REQUIRED 8
TO BE REPAID. 9
(3) “TOTAL REPAYMENT AMOUN T” MEANS THE DISBURSEME NT 10
AMOUNT OF A SALES –BASED FINANCING TRAN SACTION PLUS THE FIN ANCE CHARGE . 11
(B) (1) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO 12
A RECIPIENT WHEN EXT ENDING A SPECIFIC OFFER OF SALES –BASED FINANCING : 13
(I) THE TOTAL AMOUNT OF T HE SALES–BASED FINANCING AND 14
THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 15
MINUS ANY FEES DEDUC TED OR WITHHELD AT D ISBURSEMENT ; 16
(II) THE FINANCE CHARGE ; 17
(III) THE ESTIM ATED ANNUAL PERCENTA GE RATE OF THE 18
SALES–BASED FINANCING , USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 19
ABBREVIATION “APR”; 20
(IV) THE TOTAL REPAYMENT A MOUNT; 21
(V) THE ESTIMATED TERM OF REPAYMENT ; 22
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 23
PROJECTED PERIODIC P AYMENT AMOUNTS ; 24
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 25
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 26
PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 27
(VIII) IF APPLICABLE , A DESCRIPTION OF COLLATERAL 28
REQUIREMENTS OR SECU RITY INTERESTS. 29
SENATE BILL 509 7
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 1
SHALL DISCLOSE : 2
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 3
2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 4
MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYMENTS P ER MONTH. 5
(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 6
SHALL DISCLOSE : 7
1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 8
METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 9
2. THE AMOUNT OF THE AVE RAGE PROJECTED 10
PAYMENTS PER MONTH . 11
(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE SALES–BASED 12
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 13
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 14
PAY: 15
(I) ANY FINANCE CHAR GES OTHER THAN THE I NTEREST 16
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 17
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 18
CHARGE. 19
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 20
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RECIPIENT’S 21
LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 22
PORTION OF THE FINAN CE CHARGE AND THE MA XIMUM DOLLAR AMOUNT THE 23
RECIPIENT COULD BE R EQUIRED TO PAY . 24
12–1205. 25
(A) (1) A PROVIDER SHALL USE T HE PROJECTED SALES V OLUME OF A 26
RECIPIENT TO CALCULA TE THE FOLLOWING INF ORMATION RELATED TO A 27
SALES–BASED FINANCING TRAN SACTION: 28
(I) THE ESTIMATED TERM OF REPAYMENT AND THE 29
PROJECTED PAYMENT AM OUNTS OF A SALES–BASED FINANCING TRAN SACTION; AND 30
8 SENATE BILL 509
(II) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A 1
SALES–BASED FINANCING TRAN SACTION. 2
(2) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A SALES–BASED 3
FINANCING TRANSACTIO N SHALL BE CALCULATE D: 4
(I) IN ACCORDANCE WITH TH E FEDERAL TRUTH IN LENDING 5
ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 6
(II) BASED ON THE ESTIMATE D TERM OF REPAYMENT AND 7
PROJECTED SALES VOLU ME OF A RECIPIENT . 8
(B) (1) A PROVIDER MAY CALCULA TE THE PROJECTED SAL ES VOLUME OF 9
A RECIPIENT USING EITHE R THE HISTORICAL MET HOD OR THE OPT –IN METHOD. 10
(2) (I) A PROVIDER THAT USES T HE HISTORICAL METHOD TO 11
CALCULATE THE PROJEC TED SALES VOLUME OF A RECIPIENT SHALL US E AN 12
AVERAGE HISTORICAL V OLUME OF SALES OR RE VENUE. 13
(II) A PROVIDER S HALL FIX THE HISTORI CAL TIME PERIOD 14
USED TO CALCULATE TH E AVERAGE HISTORICAL VOLUME AND USE THE S AME TIME 15
PERIOD FOR ALL DISCL OSURE PURPOSES FOR A NY SALES–BASED FINANCING 16
TRANSACTION PRODUCTS OFFERED. 17
(III) EXCEPT AS PROVIDED IN SUBPARAGRAPH (IV) OF THIS 18
PARAGRAPH , THE FIXED HISTORICAL TIME PERIOD: 19
1. MAY NOT BE LESS THAN 1 MONTH AND MAY NOT 20
EXCEED 12 MONTHS; AND 21
2. SHALL BE THE TIME PER IOD DIRECTLY BEFORE THE 22
SPECIFIC OFFER WAS M ADE. 23
(IV) A PROVIDER MAY CHOOSE TO USE THE AVERAGE S ALES FOR 24
THE SAME NUMBER OF M ONTHS AS THE PROVIDE R WOULD HAVE USED UN DER 25
SUBPARAGRAPH (III) OF THIS PARAGRAPH WI TH THE HIGHEST SALES VOLUME 26
WITHIN THE PAST 12 MONTHS. 27
(3) A PROVIDER MAY USE THE OPT–IN METHOD TO DETERMI NE THE 28
INFORMATION LISTED U NDER SUBSECTION (A)(1) OF THIS SECTION BY U SING A 29
PROJECTED SALES VOLU ME THAT THE PROVIDER CHOOSES FOR EACH DIS CLOSURE 30
IF THE RECIPIENT PAR TICIPATES IN A REVIE W PROCESS ESTABLISHE D BY THE 31
COMMISSIONER . 32
SENATE BILL 509 9
(C) A PROVIDER SHALL NOTIF Y THE COMMISSIONER WHICH OF THE TWO 1
METHODS THE PROVIDER INTEN DS TO USE WHEN CALCU LATING THE ESTIMATED 2
ANNUAL PERCENTAGE RATE OF EACH SALES–BASED FINANCING TRAN SACTION. 3
(D) (1) ON OR BEFORE JANUARY 1 EACH YEAR, A PROVIDER THAT 4
ELECTS TO USE THE OP T–IN METHOD UNDER SUBS ECTION (B)(3) OF THIS SECTION 5
SHALL REPORT TO THE COMMISSIONER ON : 6
(I) THE ESTIMATED ANNUAL PERCENTAGE RATES GIV EN TO 7
EACH RECIPIENT ; AND 8
(II) THE ACTUAL ANNUAL PER CENTAGE RATES OF EAC H 9
COMPLETED SALES –BASED FINANCING TRAN SACTION. 10
(2) (I) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 11
SUBSECTION SHALL CON TAIN ANY INFORMATION THE COMMISSIONER CONSIDER S 12
NECESSARY TO DETERMI NE WHETHER THE DEVIA TION BETWEEN THE EST IMATED 13
ANNUAL PERCENTAGE RA TES AND ACTUAL ANNUA L PERCENTAGE RATES O F 14
COMPLETED SALES –BASED FINANCING TRAN SACTIONS IS REASONABL E. 15
(II) THE COMMISSIONER MAY CONS IDER EXTRAORDINARY 16
CIRCUMSTANCES WHEN D ETERMINING WHETHER T HE PROVIDER ’S DEVIATION 17
BETWEEN THE ESTIMATE D ANNUAL PERCENTAGE RATE AND ACTUAL ANNU AL 18
PERCENTAGE RATE OF A SALES–BASED FINANCING TRAN SACTION IS REASONABLE . 19
(III) IF THE COMMISSIONER FINDS TH AT THERE WAS AN 20
UNREASONABLE DEVIATI ON BETWEEN ESTIMATED AND ACTUAL ANNUAL 21
PERCENTAGE RATES OF SALES–BASED FINANCING TRAN SACTIONS, THE 22
COMMISSIONER MAY REQU IRE THE PROVIDER TO USE THE HISTORICAL M ETHOD 23
INSTEAD OF THE OPT –IN METHOD IN DETERMI NING THE PROJECTED S ALES VOLUME 24
OF THE RECIPIENT . 25
12–1206. 26
(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 27
DISBURSEMENT AMOUNT OF A CLOSED–END FINANCING TRANSA CTION PLUS THE 28
FINANCE CHARGE . 29
(B) (1) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORM ATION TO 30
A RECIPIENT WHEN EXT ENDING A SPECIFIC OF FER FOR CLOSED –END FINANCING : 31
(I) THE TOTAL AMOUNT OF T HE CLOSED–END FINANCING AND 32
THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 33
MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBURSEMENT ; 34 10 SENATE BILL 509
(II) THE TOTAL REPAYMENT A MOUNT; 1
(III) THE FINANCE CHARGE ; 2
(IV) THE ANNUAL PERCENTAGE RATE OF THE CLOSED –END 3
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 4
ABBREVIATION “APR”; 5
(V) THE TERM OF THE FINANCING ; 6
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 7
PROJECTED PERIODIC P AYMENT AMOUNTS ; 8
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 9
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 10
PAYMENT FEES , AND RETURNED PAYMENT FEE S; AND 11
(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 12
REQUIREMENTS OR SECU RITY INTERESTS. 13
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 14
SHALL DISCLOSE : 15
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 16
2. IF THE PAYMENT FREQUENCY IS OTHER THAN 17
MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 18
(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 19
SHALL DISCLOSE : 20
1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 21
METHOD USED TO CALCU LATE THE AM OUNTS AND FREQUENCY OF PAYMENTS ; AND 22
2. THE AMOUNT OF THE AVE RAGE PROJECTED 23
PAYMENTS PER MONTH . 24
(3) THE ANNUAL PERCENTAGE RATE REQUIRED TO BE DISCLOSED 25
UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION S HALL BE: 26
(I) EXPRESSED AS A YEARLY RATE, INCLUSIVE OF ANY FEES 27
AND FINANCE CHARGES THAT CANNOT BE AVOID ED BY A RECIPIENT ; AND 28
SENATE BILL 509 11
(II) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH 1
IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22, REGARDLESS OF 2
WHETHER FEDERAL LAW OR REGULATION WOULD REQUIRE THE C ALCULATION. 3
(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE CLOSED–END 4
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 5
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 6
PAY: 7
(I) ANY FINANCE CHARGES O THER THAN THE INTE REST 8
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 9
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 10
CHARGE. 11
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 12
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 13
LAST PAYMENT, A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 14
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 15
RECIPIENT COULD BE R EQUIRED TO PAY . 16
12–1207. 17
(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE DRAW 18
AMOUNT OF THE OPEN –END FINANCING TRANSACTIO N, MINUS ANY FEES DEDUC TED 19
OR WITHHELD AT DISBU RSEMENT, PLUS THE FINANCE CHA RGE. 20
(B) (1) WHEN CALCULATING THE TOTAL REPAYMENT AMOU NT IN 21
ACCORDANCE WITH THIS SECTION, A PROVIDER SHALL ASS UME A DRAW AMOUNT 22
EQUAL TO THE MAXIMUM AMOUNT OF CREDIT AVAILABLE TO THE RECIPIENT IF 23
DRAWN AND HELD FOR T HE DURATION OF THE T ERM OR DRAW PERIOD . 24
(2) WHEN CALCULATING A FI NANCE CHARGE IN ACCO RDANCE WITH 25
THIS SECTION, A PROVIDER SHALL ASS UME THE MAXIMUM AMOU NT OF CREDIT 26
AVAILABLE TO THE REC IPIENT, IN EACH CASE, IS DRAWN AND HELD FO R THE 27
DURATION OF THE TERM OF THE DRAW PERIOD . 28
(C) (1) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO 29
A RECIPIENT WHEN EXT ENDING A SPECIFIC OF FER FOR OPEN–END FINANCING : 30
(I) THE MAXIMUM AMOUNT OF CREDIT AVAILABL E TO THE 31
RECIPIENT AND THE AM OUNT SCHEDULED TO BE DRAWN BY THE RECIPIE NT AT THE 32
TIME THE OFFER IS EX TENDED, IF ANY, MINUS ANY FEES DEDUC TED OR WITHHELD 33
AT DISBURSEMENT ; 34 12 SENATE BILL 509
(II) THE FINANCE CHARGE ; 1
(III) THE TOTAL REPAYMENT A MOUNT; 2
(IV) THE ANNUAL PERCENTAGE RATE OF T HE COMMERCIAL 3
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 4
ABBREVIATION “APR”; 5
(V) THE TERM OF THE PLAN , IF APPLICABLE, OR THE PERIOD 6
OVER WHICH A DRAW IS AMORTIZED; 7
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 8
PAYMENT FREQUENCY AN D AMOUNTS; 9
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 10
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 11
PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 12
(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 13
REQUIREMENTS OR SECU RITY INTERESTS. 14
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 15
SHALL DISCLOSE : 16
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 17
2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 18
MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYMENTS PER MONTH . 19
(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 20
SHALL DISCLOSE : 21
1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 22
METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 23
2. THE AMOUNT OF THE AVE RAGE PROJEC TED 24
PAYMENTS PER MONTH . 25
(3) THE ANNUAL PERCENTAGE RATE REQUIRED TO BE DISCLOSED 26
UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION S HALL BE: 27
(I) EXPRESSED AS A NOMINA L YEARLY RATE , INCLUSIVE OF 28
ANY FEES AND FINANCE CHARGES THAT CANNOT BE AVOIDED BY A RECI PIENT; 29
SENATE BILL 509 13
(II) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH 1
IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 2
(III) BASED ON THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE 3
TO THE RECIPIENT AND THE TERM RESULTING F ROM MAKING THE MINIM UM 4
REQUIRED PAYMENTS AS DISCLOSE D, REGARDLESS OF WHETHE R FEDERAL LAW OR 5
REGULATION WOULD REQ UIRE THE CALCULATION . 6
(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE OPEN–END 7
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 8
PROVIDER SHALL DISCL OSE WHETHER THE RECIPIENT WOULD BE REQUIRED TO 9
PAY: 10
(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 11
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 12
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 13
CHARGE. 14
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY ADDITIONAL 15
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 16
LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 17
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 18
RECIPIENT COULD BE R EQUIRED TO PAY . 19
12–1208. 20
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 21
INDICATED. 22
(2) “FINANCE CHARGE ” INCLUDES A DISCOUNT TAKEN ON THE FACE 23
VALUE OF THE ACCOUNT S RECEIVABLE. 24
(3) “TOTAL PAYMENT AMOUNT ” MEANS THE PURCHASE A MOUNT OF 25
THE FACTORING TRANSA CTION PLUS THE FINANCE CHA RGE. 26
(B) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO A 27
RECIPIENT WHEN EXTEN DING A SPECIFIC OFFE R FOR A FACTORING TR ANSACTION: 28
(1) THE AMOUNT OF THE REC EIVABLES PURCHASE PR ICE PAID TO 29
THE RECIPIENT AND , IF DIFFERENT FROM THE PURCHASE PRICE , THE 30
DISBURSEMENT AMOUNT AFTER ANY FEES DEDUC TED OR WITHHELD AT 31
DISBURSEMENT ; 32
14 SENATE BILL 509
(2) THE TOTAL PAYMENT AMO UNT; 1
(3) THE FINANCE CHARGE ; 2
(4) THE ANNUAL PERCENTAGE RATE OF THE FACTORIN G 3
TRANSACTION , USING THE WORDS “ANNUAL PERCENTAGE RATE” OR THE 4
ABBREVIATION “APR”, CALCULATED ACCORDING TO THE FEDERAL TRUTH IN 5
LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE 6
ADVANCE, SINGLE PAYMENT TRANS ACTION”; 7
(5) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND CHARGES 8
THAT CAN BE AVOIDED BY THE RECIPIENT; AND 9
(6) A DESCRIPTION OF THE R ECEIVABLES PURCHASED AND, IF 10
APPLICABLE, ANY ADDITIONAL COLLA TERAL REQUIREMENTS O R SECURITY 11
INTERESTS. 12
(C) (1) FOR PURPOSES OF THIS SUBSECTION, THE ANNUAL PERCENTAG E 13
RATE SHALL BE CALCUL ATED ACCORDING TO THE FEDERAL TRUTH IN LENDING 14
ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE ADVANCE , 15
SINGLE PAYMENT TRANS ACTION”, REGARDLESS OF WHETHE R FEDERAL LAW OR 16
REGULATION WOULD REQ UIRE AN ANNUAL PERCE NTAGE RATE TO BE CAL CULATED 17
FOR A CERTAIN TRANSACTIO N. 18
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 19
PROVIDER SHALL USE T HE FOLLOWING INFORMA TION TO CALCULATE TH E 20
ESTIMATED ANNUAL PER CENTAGE RATE IN ACCO RDANCE WITH THIS SEC TION: 21
1. THE PURCHASE AMOUNT I S THE FINANCING AMOUNT ; 22
2. THE PAYMENT AMOUNT IS THE PURCHASE AMOUNT 23
MINUS THE FINANCE CH ARGE; AND 24
3. THE TERM OF THE FACTO RING TRANSACTION IS 25
DETERMINED BY THE PA YMENT DUE DATE OF TH E RECEIVABLES . 26
(II) A PROVIDER MAY ESTIMAT E THE TERM FOR A FAC TORING 27
TRANSACTION AS THE A VERAGE PAYMENT PERIO D, USING HISTORICAL DAT A OVER 28
A PERIOD NOT TO EXCE ED THE PREVIOUS 12 MONTHS, CONCERNING PAYMENT 29
INVOICES PAID BY THE PARTY OWING THE ACCO UNTS RECEIVABLE IN Q UESTION. 30
12–1209. 31
SENATE BILL 509 15
(A) IN THIS SECTION , “TOTAL REPAYM ENT AMOUNT ” MEANS THE 1
DISBURSEMENT AMOUNT OF A COMMERCIAL FINA NCING TRANSACTION PL US THE 2
FINANCE CHARGE . 3
(B) A PROVIDER MAY EXTEND A SPECIFIC OFFER OF COMMERCIAL 4
FINANCING THAT IS NO T AN OPEN–END FINANCING , A CLOSED–END FINANCING , A 5
SALES–BASED FINANCING , OR A FACTORING TRANS ACTION BUT OTHERWISE MEETS 6
THE DEFINITION OF CO MMERCIAL FINANCING U NDER THIS SUBTITLE . 7
(C) (1) IF A PROVIDER EXTENDS A SPECIFIC OFFER THA T IS NOT AN 8
OPEN–END FINANCING , A CLOSED–END FINANCING , A SALES–BASED FINANCING , OR 9
A FACTORIN G TRANSACTION BUT OT HERWISE MEETS THE DE FINITION OF 10
COMMERCIAL FINANCING UNDER THIS SUBTITLE , THE PROVIDER SHALL D ISCLOSE: 11
(I) THE TOTAL AMOUNT OF T HE COMMERCIAL FINANC ING 12
INCLUDING THE DISBUR SEMENT AMOUNT , IF DIFFERENT FROM TH E FINANCING 13
AMOUNT, MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBURSE MENT; 14
(II) THE TOTAL REPAYMENT A MOUNT; 15
(III) THE FINANCE CHARGE ; 16
(IV) THE ANNUAL PERCENTAGE RATE OF THE COMMERCI AL 17
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 18
ABBREVIATION “APR”, EXPRESSED AS A YEARLY RATE , INCLUSIVE OF ANY FEE S 19
AND FINANCE CHARGES , AND CALCULATED IN AC CORDANCE WITH THE RE LEVANT 20
SECTIONS OF THE FEDE RAL TRUTH IN LENDING ACT, REGULATION Z, 12 C.F.R. § 21
1026.22, OR THIS ARTICLE , REGARDLESS OF WHETHE R FEDERAL LAW , THE 22
REGULATIO N, OR THIS ARTICLE WOUL D REQUIRE THE CALCUL ATION; 23
(V) THE TERM OF THE COMME RCIAL FINANCING ; 24
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 25
PAYMENT FREQUENCY AN D AMOUNTS; 26
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 27
CHARGES NOT INCLUDED IN THE FINA NCE CHARGE , INCLUDING LATE PAYME NT 28
FEES AND RETURNED PA YMENT FEES; AND 29
(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 30
REQUIREMENTS OR SECU RITY INTERESTS. 31
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 32
SHALL DISCLOSE : 33 16 SENATE BILL 509
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 1
2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 2
MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 3
(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 4
SHALL DISCLOSE : 5
1. THE PAYMENT SCHEDULE OR A DESCRI PTION OF THE 6
METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 7
2. THE AMOUNT OF THE AVE RAGE PROJECTED 8
PAYMENTS PER MONTH . 9
(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE COMMERCIAL 10
FINANCING BEFORE THE END OF THE SCHEDULED REPAYM ENT PERIOD , A 11
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 12
PAY: 13
(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 14
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 15
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 16
CHARGE. 17
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 18
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 19
LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 20
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 21
RECIPIENT COULD BE R EQUIRED TO PAY . 22
12–1210. 23
(A) A PROVIDER MAY REQUIRE A RECIPIENT TO PAY O FF THE BALANCE OF 24
AN EXISTING COMMERCI AL FINANCING TRANSAC TION FROM THE SAME P ROVIDER 25
AS A CONDITION OF OB TAINING A NEW OR REN EWAL COMMERCIAL FINANCING 26
TRANSACTION . 27
(B) IF A PROVIDER REQUIRE S A RECIPIENT TO PAY OFF A COMMERCIAL 28
FINANCING TRANSACTIO N BEFORE OBTAINING A NEW OR RENEWAL COMME RCIAL 29
FINANCING TRANSACTIO N, THE PROVIDER SHALL D ISCLOSE: 30
SENATE BILL 509 17
(1) THE AMOUNT OF THE NEW OR RENEWAL COMMERCIA L FINANCING 1
THAT WILL BE USED TO PAY OFF THE PORTION OF THE EXISTING COMM ERCIAL 2
FINANCING THAT CONSI STS OF ANY REQUIRED PREPAYMENT CHARGES ; AND 3
(2) ANY UNPAID INTEREST T HAT WAS NOT FORGIVEN AT THE TIME 4
THE NEW OR RENEWAL C OMMERCIAL FINANCING WAS ENTERED INTO. 5
(C) (1) FOR FINANCING FOR WHI CH THE TOTAL REPAYME NT AMOUNT IS 6
CALCULATED AS A FIXE D AMOUNT, THE PREPAYMENT CHARG E IS EQUAL TO THE 7
ORIGINAL FINANCE CHA RGE MULTIPLIED BY TH E AMOUNT OF THE NEW OR 8
RENEWAL COMMERCIAL F INANCING USED TO PAY OFF THE EXIST ING COMMERCIAL 9
FINANCING TRANSACTIO N AS A PERCENTAGE OF THE TOTAL REPAYMENT AMOUNT, 10
MINUS ANY PORTION OF THE TOTAL REPAYMENT AMOUNT FORGIVEN BY T HE 11
PROVIDER AT THE TIME OF PREPAYMENT . 12
(2) IF THE PREPAYMENT CHA RGE IS MORE THAN ZER O, THE 13
PROVIDER SHALL RE CORD THE AMOUNT AS T HE ANSWER TO THE FOL LOWING 14
QUESTION: 15
“DOES THE NEW OR RENEW AL COMMERCIAL FINANC ING TRANSACTION INCL UDE 16
ANY AMOUNT THAT IS U SED TO PAY UNPAID FI NANCE CHARGES OR FEE S, ALSO 17
KNOWN AS DOUBLE DIPP ING? YES, (ENTER AMOUNT )”. 18
(D) IF THE DISB URSEMENT AMOUNT OF T HE NEW OR RENEWAL 19
COMMERCIAL FINANCING TRANSACTION WILL BE REDUCED TO PAY DOWN ANY 20
UNPAID PORTION OF TH E OUTSTANDING BALANC E OF THE EXISTING CO MMERCIAL 21
FINANCING, THE PROVIDER SHALL D ISCLOSE THE ACTUAL D OLLAR AMOUNT BY 22
WHICH THE DISBURS EMENT AMOUNT WILL BE REDUCED. 23
12–1211. 24
A RECIPIENT SHALL SIGN , MANUALLY OR ELECTRON ICALLY, EACH 25
APPLICABLE DISCLOSUR E REQUIRED UNDER THI S SUBTITLE BEFORE A PROVIDER 26
MAY ALLOW THE RECIPI ENT TO PROCEED WITH THE COMMERCIAL FINAN CING 27
APPLICATION. 28
12–1212. 29
(A) (1) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PREVENT A 30
PROVIDER FROM DISCLO SING ADDITIONAL INFO RMATION TO A RECIPIE NT 31
REGARDING A COMMERCI AL FINANCING TRANSAC TION. 32
18 SENATE BILL 509
(2) IF A PROVIDER PROVIDE S AN ADDITIONAL DISC LOSURE TO A 1
RECIPIENT OTHER THAN WHAT IS REQUIRED BY THIS SUBTITLE, THE ADDITIONAL 2
DISCLOSURE IS NOT CO NSIDERED A REQUIRED DISCLOSURE UNDER THI S SUBTITLE. 3
(B) (1) IF ADDITIONAL METRICS OF FINANCING COSTS A RE DISCLOSED 4
OR USED IN THE APPLI CATION PROCESS FOR C OMMERCIAL FINANCING , THE 5
ADDITIONAL METRICS M AY NOT BE PRESENTED AS A RATE IF THEY AR E NOT THE 6
ANNUAL INTEREST RATE OR THE ANNUAL PERCEN TAGE RATE. 7
(2) THE TERM “INTEREST”, WHEN USED TO DESCRIB E A PERCENTAGE 8
RATE, MAY BE USED ONLY TO DESCRIBE ANNUAL PERC ENTAGE RATES , INCLUDING 9
THE ANNUAL INTEREST R ATE. 10
(C) IF A PROVIDER STATES A RATE OF FINANCE CH ARGE OR A FINANCING 11
AMOUNT TO A RECIPIEN T DURING THE APPLICA TION PROCESS FOR COM MERCIAL 12
FINANCING, THE PROVIDER SHALL A LSO STATE THE RATE A S AN “ANNUAL 13
PERCENTAGE RATE ”, USING THAT TER M OR THE ABBREVIATIO N “APR”. 14
12–1213. 15
(A) TO CARRY OUT THIS SUB TITLE, THE COMMISSIONER SHALL AD OPT 16
REGULATIONS SUBSTANT IALLY THE SAME AS RE GULATIONS ADOPTED BY THE NEW 17
YORK STATE DEPARTMENT OF FINANCIAL SERVICES REGARDING CO MMERCIAL 18
FINANCING. 19
(B) THE COMMISSIONER SHALL AP PROVE THE USE OF COM MERCIAL 20
FINANCING DISCLOSURE FORMS APPROVED FOR U SE IN OTHER STATES W ITH 21
COMMERCIAL FINANCING DISCLOSURE REQUIREME NTS THAT ARE SUBSTAN TIALLY 22
SIMILAR TO OR EXCEED THE REQUIREMENTS OF THIS SUBTITLE. 23
12–1214. 24
(A) (1) THE COMMISSIONER SHALL IM POSE A CIVIL PENALTY NOT 25
EXCEEDING: 26
(I) $2,000 FOR EACH VIOLATION O F THIS SUBTITLE; AND 27
(II) $10,000 FOR EACH WILLFUL VIO LATION OF THIS SUBTI TLE. 28
(2) THE COMMISSIONER MAY ORDE R ADDITIONAL RELIEF , 29
INCLUDING RESTITUTIO N OR A PERMANENT OR PRELIMINARY INJUNCTI ON ON 30
BEHALF OF A RECIPIEN T AFFECTED BY A VIOL ATION OF THIS SUBTIT LE. 31
SENATE BILL 509 19
(B) IF A COMPLAINT ABOUT A VIOLATION OF THIS SUBTITLE IS FILED WI TH 1
THE COMMISSIONER , THE COMMISSIONER MAY INVE STIGATE THE COMPLAIN T AND 2
USE ANY OF THE INVESTIGATIVE AND ENFORCEMENT POWE RS PROVIDED UNDER 3
TITLE 2, SUBTITLE 1 OF THIS ARTICLE. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2024. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.