UTA LEG Consumer Financing Code

On Feb. 20, UTA LEG passed bill re protections and lender obligations.

  • UTA LEG passed Senate bill SB 25, Financial institution and consumer notification act.
  • Modifies provisions of Financial institution act and Consumer credit code re commercial financing transactions, consumer lender notifications; repeals certain disclosure terms.
  • Amends UTA FIN 7-27-101 (definitions), UTA FIN 7-27-202 (disclosures) UTA FIN 70C-1-302 (definitions), UTA FIN 70C-8-202 (notification), UTA FIN 70C-8-203 (exam fee).
  • Bill Provisions
  • Revise broker definition to specify executed transaction would bind the IB to 3rd party.
  • Offering or holding the commercial financing product does not constitute a broker.
  • Remove requirement for provider to disclose terms after disbursement of funds occur.
  • Revise Consumer credit code, any party subject to code is required to notify the State by Dec. 31 per year and pay $100 fee, prior requirement was Jan. 31 of a given year.
  • Must evidence registration in Nationwide Multistate Licensing System, (12 USC 5101).
  • Legislative History
  • On Jan. 16, 2024, bill introduced in Senate; on Feb. 5, 2024, bill passed in the Senate.
  • On Feb. 5, 2024, bill introduced in House; on Feb. 20, 2024, bill passed in the House.
  • Effectiveness
  • SB 25 comes into effect on May 1, 2024 if enacted.
  • Mar. 2024 UTA LEG Governor Approval
  • On Mar. 13, 2024, UTA LEG reported bill SB 25 signed by governor, effective May 1.

Regulators UTA LEG
Entity Types Bank; CNSM; IB; Ins; MG Orig; Servicer
Reference Bill, 3/13/2024; Bill, SB0025, 2/20/2024; Citation: *UTA FIN* 7-27-101, 7-27-202, 70C-1-302, 70C-8-202, 70C-8-203; 12 USC 5101;
Functions Advertising; Market Conduct; Product Administration; Registration/Licensing; Sales Practices; Suitability; Underwriting
Countries United States of America
Products Banking; Cards; Insurance; Loan; Mortgage
Regions Am
Rule Type Final
Rule Date 2/20/2024
Effective Date 5/1/2024
Rule Id 201699
Linked to N/A
Reg. Last Update 3/13/2024
Report Section US Banking

Last substantive update on 03/20/2024