Utah Amends Definition of Commercial Finance Broker

The Utah state legislature successfully passed a bill amending some elements of its recent commercial financing disclosure law.

As part of that the definition of a broker has changed from:

a person who, for compensation or the expectation of compensation, arranges a commercial financing transaction between a third party and business in the state.

to:

a person who:
(i) for compensation or the expectation of compensation, obtains a commercial financing product or an offer for a commercial financing product from a third party that, if executed, would bind the third party; and
(ii) communicates the offer described in Subsection (2)(a)(i) to a business located in the state .
(b) “Broker” does not include:
(i) a provider; or
(ii) a person whose compensation is not based or dependent on the terms of a specific commercial financing product that the person obtains or offers.

The law will also remove the line about having to disclose “any amount of the funds described in Subsection (2)(a) that the provider pays to a broker in connection with the commercial financing transaction.”

You can read it here. The bill just needs the governor’s signature.