Georgia enacts commercial finance disclosure requirements
On May 1, the governor of Georgia signed SB 90 to, among other things, require disclosures in connection with trade finance transactions. The amendments modify the current Fair Business Practices Act and apply to “commercial loans” and “open-ended commercial credit plans”. The amendments define a “provider” as “a person who conducts more than five commercial finance transactions in this state in a calendar year and includes, but is not limited to, a person who, under an agreement written with a depository institution, offers one or more commercial financing products provided by the depository institution through an online platform that the person administers.The Amendments also establish parameters for qualifying commercial transactions and outline numerous exemptions. , before entering into a trade finance transaction, a provider must (i) disclose the terms of the transaction as specified in the amendments, and (ii) include a description of the methodology used to calculate any variable payment amount and the circumstances which may cause the amount of the payment to vary.The provisions apply to any trade finance transaction carried out on or after January 1, 2024. The amendments also address unfair or deceptive practices relating to brokerage engagements and come into force on January 1, 2024 .
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