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Financial Services Law Insights and Observations

Utah amends provisions on notifications and definitions of commercial financing transactions

State Issues State Legislation Utah Commercial Finance NMLS

State Issues

On March 13, the Governor of Utah signed into law SB 25, a bill that amended certain provisions related to commercial financing transactions, specifically repealing provisions related to disclosing commercial financing transactions and adding the requirement that a party subject to the notification requirement must submit evidence of registration with the NMLS. The bill also amended Section 7-27-101 of the Laws of Utah, to update the definition of the term “broker” and separate it from the term “provider.” Under Section 7-27-202, the bill removed certain disclosures for commercial financing transactions, including disclosures previously required for open-end credit plans after disbursing funds. Additionally, under Section 70C-1-302, the bill updated two more defined terms: “Commissioner” and “Nationwide database.” Lastly, under Section 70C-8-202, the bill amended certain notification requirements, specifically indicating the party shall file a notification via the NMLS, and such notification will be required annually on or before December 31. The bill will go into effect on May 1.