Truth in Lending Act (TILA): Federal law that requires lenders to provide standardized disclosures about credit terms and costs. Essential for vendor finance agreements involving consumer credit.
Equal Credit Opportunity Act (ECOA): Prohibits discrimination in credit transactions based on race, color, religion, national origin, sex, marital status, age, or whether the applicant receives public assistance.
Fair Credit Reporting Act (FCRA): Regulates the collection, dissemination, and use of consumer credit information. Relevant when conducting credit checks on potential vendors or customers.
Uniform Commercial Code (UCC): Particularly Articles 2 (Sales) and 9 (Secured Transactions), governs commercial transactions including sales of goods and secured financing arrangements.
State Usury Laws: State-specific regulations that set maximum interest rates that can be charged on loans. Vary by jurisdiction and must be considered in financing terms.
State Lending License Requirements: State-specific requirements for obtaining and maintaining lending licenses, which may be necessary for vendor financing activities.
Securities Laws: Including Securities Act of 1933 and Securities Exchange Act of 1934, may apply if the financing arrangement could be classified as a security.
Bank Secrecy Act: Requires financial institutions to assist government agencies in detecting and preventing money laundering, including reporting requirements for certain transactions.
Consumer Financial Protection Bureau Regulations: Federal regulations designed to ensure fairness and transparency in consumer financial products and services, including vendor financing arrangements.
Dodd-Frank Wall Street Reform: Comprehensive financial reform legislation that impacts financial institutions and their lending practices, including vendor finance arrangements.
Federal Bankruptcy Laws: Governs the rights and obligations of creditors and debtors in bankruptcy proceedings, crucial for protecting interests in vendor finance agreements.
State Commercial Finance Disclosure Requirements: State-specific requirements for disclosure of financing terms and conditions to commercial borrowers, becoming increasingly common across states.
