SB 2629 Summary

• Establishes the "Commercial Financing Disclosure Law" requiring providers who consummate more than five commercial financing products annually to disclose specific terms including total funds provided, total payments, total dollar cost of financing, payment details, prepayment terms, and broker compensation.

• Applies to commercial loans, accounts receivable purchase transactions, and commercial open-end credit plans for business purposes, with disclosures required at or before consummation and within 15 days of each disbursement for open-end plans.

• Exempts depository institutions, Farm Credit Act lenders, real property-secured financing, motor vehicle dealers/rental companies receiving at least $50,000, licensed money transmitters, and providers making five or fewer commercial financing products annually.

• Imposes penalties of $500 per incident (up to $20,000 aggregate) for violations, or $1,000 per incident (up to $50,000 aggregate) for subsequent violations after written notice from the Attorney General.

• Vests exclusive enforcement authority with the Mississippi Attorney General and clarifies that violations do not create private rights of action or affect agreement enforceability; effective July 1, 2022.