Connecticut Passes Commercial Financing Disclosure Bill

Connecticut has passed a commercial financing disclosure bill. See: SB1032. The bill now just needs to be signed by the governor. The planned effective date is July 1, 2024.

Connecticut’s bill has several unique rules in addition to standard disclosures already seen in other states. They include:

1. A provider shall not revoke, withdraw or modify a specific offer until midnight of the third calendar day after the date of the specific offer.

2. Providers and brokers must register with the Banking Commissioner.

3. No commercial financing contract shall contain any provision waiving a recipient’s right to notice, judicial hearing or prior court order in connection with the provider obtaining any prejudgment remedy, including, but not limited to, attachment, execution, garnishment or replevin, upon commencing any litigation against the recipient.

The bill has been added to deBanked’s state regulation map.