                                 CODE OF VIRGINIA

DISCLOSURE REQUIREMENTS (§ 6.2-2231)

Each provider shall provide the following disclosures to a recipient at the time
of extending a specific offer of sales-based financing, according to formatting
prescribed by the Commission:

1. The total amount of the sales-based financing, and the disbursement amount,
if different from the financing amount, after any fees deducted or withheld at
disbursement.

2. The finance charge.

3. The total repayment amount, which is the disbursement amount plus the finance
charge.

4. The estimated number of payments, which is the number of payments expected,
based on the projected sales volume, to equal the total repayment amount.

5. The payment amounts, based on the projected sales volume (i) for payment
amounts that are fixed, the payment amounts, frequency, and method or (ii) for
payment amounts that are variable, a payment schedule or a description of the
method used to calculate the amounts and frequency of payments and payment
method.

6. A description of all other potential fees and charges not included in the
finance charge, including draw fees, late payment fees, returned payment fees,
and prepayment fees or penalties.

7. If the recipient elects to pay off or refinance the sales-based financing
prior to full repayment, an updated disclosure of:
			a. The information required by subdivisions 1 through 6 as of the day of
prepayment or refinance; and
			b. A description of prepayment policies including whether the recipient will
be required to pay any additional fees, penalties, or other amounts not already
included in the finance charge, or if the recipient will receive any discount to
the finance charge.

8. A description of collateral requirements or security interests, if any.

9. A statement of whether the provider will pay compensation directly to a
broker in connection with the specific offer of sales-based financing and the
amount of compensation.

HISTORY: 2022, c. 516.