22601.1.
(a) For purposes of this section, the following definitions apply:(1) “Automated clearinghouse” means any federal reserve bank, or an organization established in agreement with the National Automated Clearing House Association, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and authorizes an electronic transfer of funds between these banks or bank accounts.
(2) “Small business” means an independently owned and operated business that is not dominant in its field of operation, the principal office of which is located in California, the officers of which are domiciled in California, and that, together with affiliates, has
100 or fewer employees and average annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three years.
(b) A licensee shall not charge any of the following in connection with a financing transaction with a small business:
(1) A fee for accepting or processing a payment required by the terms of the financing contract as an automated clearinghouse transfer debit.
(2) A fee for providing a small business with documentation prepared by the licensee that contains a statement of the amount due to satisfy the remaining debt, including, but not limited to, interest accrued to the date the statement is prepared and a means of calculating per diem interest accruing thereafter.
(3) A fee in addition to a loan origination fee that
does not have a clear corresponding service provided for the fee, including, but not limited to, a risk assessment, due diligence, or platform fee.
(4) A fee for monitoring the small business’s collateral, unless the underlying loan is delinquent for more than 90 days.
(5) A fee for filing or terminating a lien filed in accordance with the provisions of the Uniform Commercial Code against the business’s assets that exceeds 150 percent of the cost of the filing or termination.