For purposes of this title, the following definitions apply:
(a)CA Civil Law Code § 1799.300(a) “Automated clearinghouse” means any federal reserve bank, or an organization established in agreement with the National Automated Clearing House Association, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and authorizes an electronic transfer of funds between these banks or bank accounts.
(b)Copy CA Civil Law Code § 1799.300(b)
(1)Copy CA Civil Law Code § 1799.300(b)(1) “Broker” means a person who is engaged in the business of performing any of the following acts in connection with commercial financing made by a provider:
(A)CA Civil Law Code § 1799.300(b)(1)(A) Transmitting confidential data about a prospective recipient to a provider with the expectation of compensation in connection with making a referral.
(B)CA Civil Law Code § 1799.300(b)(1)(B) Making a referral to a provider under an agreement with the provider that a prospective recipient referred by the person to the provider meet certain criteria involving confidential data.
(C)CA Civil Law Code § 1799.300(b)(1)(C) Participating in a negotiation of commercial financing between a provider and prospective recipient.
(D)CA Civil Law Code § 1799.300(b)(1)(D) Counseling, advising, or making recommendations to a prospective recipient about a commercial financing transaction based on the prospective recipient’s confidential data.
(E)Copy CA Civil Law Code § 1799.300(b)(1)(E)
(i)Copy CA Civil Law Code § 1799.300(b)(1)(E)(i) Participating in the preparation of any commercial financing documents, including, but not limited to, commercial financing applications, other than providing a prospective recipient blank copies of commercial financing documents.
(ii)CA Civil Law Code § 1799.300(b)(1)(E)(i)(ii) Notwithstanding clause (i), transmitting information that is not confidential data to a provider at the request of a prospective recipient shall not, by itself, constitute participation in the preparation of commercial financing documents.
(F)CA Civil Law Code § 1799.300(b)(1)(F) Communicating to a prospective recipient a provider’s approval decisions related to a commercial financing transaction.
(G)CA Civil Law Code § 1799.300(b)(1)(G) Charging a fee to a prospective recipient for any services related to a prospective recipient’s
application for a commercial financing transaction from a provider.
(2)CA Civil Law Code § 1799.300(b)(2) Notwithstanding paragraph (1), a person is not a “broker” under this title solely because they take any of the following acts:
(A)CA Civil Law Code § 1799.300(b)(2)(A) Performing support tasks, including, but not limited to, typing, word processing, data entry, filing, billing, answering phone calls, taking and receiving messages, and scheduling, in support of the performance by a broker of any of the activities described in subparagraphs (E) to (G), inclusive, of paragraph (1).
(B)CA Civil Law Code § 1799.300(b)(2)(B) Furnishing a consumer report to a covered entity by a consumer reporting agency in accordance with subsection (a) or (c) of Section 1681b of Title 15 of the United States Code.
(C)CA Civil Law Code § 1799.300(b)(2)(C) Furnishing a consumer credit report, as defined in Section 1785.3, to a covered entity by a consumer credit reporting agency in accordance with subdivision (a) or paragraph (1) of subdivision (b) of Section 1785.11.
(D)CA Civil Law Code § 1799.300(b)(2)(D) Furnishing a prequalifying report, as defined in Section 1785.3, to a covered entity by a consumer credit reporting agency in accordance with paragraph (2) of subdivision (b) of Section 1785.11.
(E)CA Civil Law Code § 1799.300(b)(2)(E) Distributing or disseminating to a prospective recipient of a provider’s marketing materials or factual information about the provider, its lending activities, or its loan products, including, but not limited to, the provider’s interest rates, the provider’s minimum or maximum loan amounts or loan
periods, or a general description of the provider’s underwriting criteria.
(c)CA Civil Law Code § 1799.300(c) “Commercial financing” has the same meaning as defined in Section 22800 of the Financial Code.
(d)CA Civil Law Code § 1799.300(d) “Confidential data” means any of the following:
(1)CA Civil Law Code § 1799.300(d)(1) A bank account number.
(2)CA Civil Law Code § 1799.300(d)(2) A bank statement.
(3)CA Civil Law Code § 1799.300(d)(3) A credit or debit card account number.
(4)CA Civil Law Code § 1799.300(d)(4) A credit score, as defined in Section 1785.15.1.
(5)CA Civil Law Code § 1799.300(d)(5) All or a portion of a social security number.
(6)CA Civil Law Code § 1799.300(d)(6) Personal or business income information, including information self-reported by the person.
(7)CA Civil Law Code § 1799.300(d)(7) A taxpayer or employer identification number.
(e)CA Civil Law Code § 1799.300(e) “Covered entity” means either of the following:
(1)CA Civil Law Code § 1799.300(e)(1) A provider.
(2)CA Civil Law Code § 1799.300(e)(2) A broker.
(f)CA Civil Law Code § 1799.300(f) “Depository institution” means any of the following:
(1)CA Civil Law Code § 1799.300(f)(1) A bank, trust company, or industrial loan company doing business under the authority of, or in accordance with, a license, certificate, or charter issued by the United States, this state, or any other state,
district, territory, or commonwealth of the United States that is authorized to transact business in this state.
(2)CA Civil Law Code § 1799.300(f)(2) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this state.
(3)CA Civil Law Code § 1799.300(f)(3) A savings and loan association, savings bank, or credit union organized under the laws of this or any other state that is authorized to transact business in this state.
(g)CA Civil Law Code § 1799.300(g) “Provider” means a person who extends a specific offer of commercial
financing to a recipient, including, but not limited to, a nondepository institution that enters into a written agreement with a depository institution to arrange for the extension of commercial financing by the depository institution to a recipient via an online lending platform administered by the nondepository institution. The fact that a provider extends a specific offer of commercial financing or lending on behalf of a depository institution shall not be construed to mean that the provider engaged in lending or originated that loan or financing.
(h)CA Civil Law Code § 1799.300(h) “Recipient” means a person who is
presented a specific commercial financing offer by a provider that is equal to or less than five hundred thousand dollars ($500,000).
(i)CA Civil Law Code § 1799.300(i) “Referral” means the introduction of a prospective recipient to a provider or the delivery of a prospective recipient’s contact information to a provider for the purpose of making an introduction.
(j)CA Civil Law Code § 1799.300(j) “Small business” means an independently owned and operated business that is not dominant in its field of operation, the principal office of which is located in California, the officers of which are domiciled in California, and that, together with affiliates, has 100 or fewer employees and average annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three years.
