CA SB1521

Prohibits covered entities from charging fees for monitoring a small business's collateral in commercial financing transactions, with limited exceptions.

Allows collateral monitoring fees if the transaction is an asset-based loan or factoring and the fee compensates for validating collateral to maximize financing provided to the small business.

Permits collateral monitoring fees if expressed as a dollar amount or percentage of an identifiable base and deemed a finance charge under California Code of Regulations Section 943.

Allows collateral monitoring fees if the commercial financing transaction is delinquent for more than 60 days.

Prohibits fees for payment processing via automated clearinghouse transfers, payoff statements, and unclear fees beyond origination fees; caps lien filing and termination fees at 150 percent of actual filing costs.