Caveat Lender: A User's Guide to the California Financing Law

California is known for thinking outside of the box and being ahead of the curve in many ways, and that includes the regulation of non-traditional lenders. The California Financing Law (CFL) is remarkably and surprisingly broad in scope, potentially regulating virtually any party making loans that is not otherwise licensed as a lender. It covers a wide range of loans in large and small amounts, from multimillion dollar strategic loans, to small dollar loans among family members, to loans among affiliated companies, among other categories.

This program, taught by Teresa Johnson and Catrine Brown from Arnold & Porter, will delve into the CFL and its regulation of consumer and commercial loans. The course will describe the exemptions, the application process, reporting requirements and regulations. It will also discuss potential pitfalls under the CFL. Finally, the program will also address recent developments, including the Commercial Financing Disclosure law enacted in September 2018, which requires "truth in lending" disclosures to small-scale commercial loans.


Learning Objectives:

1. Discuss the scope of the CFL
2. Identify the common exemptions under the CFL
3. Explain the application process
4. Describe the ongoing obligations of being a CFL lender
5. Review the new Commercial Financing Disclosure law