United States — Utah Act or statute

United States — Utah legislation

Utah Code § 7-27-101

This section defines key terms used in the chapter, including accounts receivable purchase transaction, broker, business, business purpose transaction, commercial financing transaction, commercial loan, commercial…

Source excerpt

accounts receivable purchaseaccounts receivable purchase transactionsaccounts receivable purchasesbroker definitionbusiness definitionbusiness purpose transactionbusiness transactionscommercial financingcommercial financing productscommercial financing transactionscommercial lendingcommercial loancredit plansdefinitionsdepository institutionsintended purposemotor vehicle dealersonline platformsopen-end creditprovider definitiontransaction characterizationwritten statement

Jurisdiction: United States — Utah
Status: In force
Dates: Legal dates not recorded

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“This section defines key terms used in the chapter, including accounts receivable purchase transaction, broker, business, business purpose transaction, commercial financing transaction, commercial loan, commercial open-end credit plan, motor vehicle dealer, and provider.”

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Definitions.

Section 7-27-101

Subsection 7-27-101(2)(b)(i)

a provider; or

Section 7-27-101(2)(b)(i)

Subsection 7-27-101(4)(a)(ii)

intended to be used to carry on the business.

Section 7-27-101(4)(a)(ii)

Subsection 7-27-101(7)

Defines a “commercial open-end credit plan” as commercial financing to a business with expected repeat transactions and replenishment as repayments are made, subject to any creditor-set limit.

Section 7-27-101(7)

Subsection 7-27-101(9)(b)

Defines “provider” to include a person meeting the stated online-platform and written-agreement conditions.

Section 7-27-101(9)(b)

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Showing 27 of 27 provisions

Provision 26Interpretation

Part 7-27-1

part 7-27-1 General Provisions

§ 7-27-101Definitions.Interpretation

Source excerpt

Definitions. As used in this chapter: "Accounts receivable purchase transaction" means a transaction in which a business forwards or otherwise sells to a person all or a portion of the business's accounts, as defined in Section 70A-9a-102 , or payment intangibles, as defined in Section 70A-9a-102 , at a discount to the accounts' or payment intangibles' expected value. "Broker" means a person who: for compensation or the expectation of compensation, obtains a commercial financing product or an offer for a commercial financing product from a third party that, if executed, would bind the third party; and communicates the offer described in Subsection (2)(a)(i) to a business located in the state. "Broker" does not include: a provider; or a person whose compensation is not based or dependent on the terms of a specific commercial financing product that the person obtains or offers. "Business" means a private enterprise carried on for the purpose of gain or economic profit. "Business purpose transaction" means a transaction from which the resulting proceeds that a business receives are: provided to the business; or intended to be used to carry on the business. "Business purpose transaction" does not include a transaction from which the resulting proceeds are intended to be used for personal, family, or household purposes. For purposes of determining whether a transaction is a business purpose transaction, a provider may rely on a written statement of intended purpose, signed by an individual authorized to sign on behalf of the business. The written statement may be contained in an application, agreement, or other document signed by an individual authorized to sign on behalf of the business. "Commercial financing transaction" means a business purpose transaction: under which a person extends a business a commercial loan or a commercial open-end credit plan; or that is an accounts receivable purchase transaction. "Commercial loan" means a loan to a business, regardless of whether the loan is secured. "Commercial open-end credit plan" means commercial financing extended to a business on terms under which: the creditor reasonably contemplates repeat transactions; and subject to any limit set by the creditor, the amount of financing that the creditor may extend to the business during the term of the plan is made available to the extent that any outstanding balance is repaid. "Motor vehicle dealer" means a dealer as defined in Section 41-3-102 . "Provider" means a person who consummates more than five commercial financing transactions in the state during any calendar year. "Provider" includes a person who, under a written agreement with a depository institution, offers one or more commercial financing products provided by the depository institution via an online platform that the person administers.

Section 7-27-101Verify source

§ 7-27-101(1)Subsection 7-27-101(1)Provision

Source excerpt

This subsection defines “accounts receivable purchase transaction.”

"Accounts receivable purchase transaction" means a transaction in which a business forwards or otherwise sells to a person all or a portion of the business's accounts, as defined in Section 70A-9a-102 , or payment intangibles, as defined in Section 70A-9a-102 , at a discount to the accounts' or payment intangibles' expected value.

Section 7-27-101(1)Verify source

§ 7-27-101(2)Subsection 7-27-101(2)Provision

Source excerpt

This subsection defines “broker” for commercial financing: a person acting for compensation or expected compensation who obtains a commercial financing product or related offer from a third party and communicates the offer to a business in the state.

"Broker" means a person who: for compensation or the expectation of compensation, obtains a commercial financing product or an offer for a commercial financing product from a third party that, if executed, would bind the third party; and communicates the offer described in Subsection (2)(a)(i) to a business located in the state. "Broker" does not include: a provider; or a person whose compensation is not based or dependent on the terms of a specific commercial financing product that the person obtains or offers.

Section 7-27-101(2)Verify source

§ 7-27-101(2)(a)Subsection 7-27-101(2)(a)Provision

Source excerpt

A “broker” is a person who, for compensation or expected compensation, obtains a commercial financing product or offer from a third party and communicates that offer to a business in the state.

Section 7-27-101(2)(a)Verify source

§ 7-27-101(2)(a)(i)Subsection 7-27-101(2)(a)(i)Provision

Source excerpt

for compensation or the expectation of compensation, obtains a commercial financing product or an offer for a commercial financing product from a third party that, if executed, would bind the third party; and

Section 7-27-101(2)(a)(i)Verify source

§ 7-27-101(2)(a)(ii)Subsection 7-27-101(2)(a)(ii)Provision

Source excerpt

Communicates the offer described in Subsection (2)(a)(i) to a business located in the state.

communicates the offer described in Subsection (2)(a)(i) to a business located in the state.

Section 7-27-101(2)(a)(ii)Verify source

§ 7-27-101(2)(b)Subsection 7-27-101(2)(b)Provision

Source excerpt

“Broker” excludes a provider and a person whose compensation is not based or dependent on the terms of a specific commercial financing product they obtain or offer.

"Broker" does not include: a provider; or a person whose compensation is not based or dependent on the terms of a specific commercial financing product that the person obtains or offers.

Section 7-27-101(2)(b)Verify source

§ 7-27-101(2)(b)(i)Subsection 7-27-101(2)(b)(i)Provision

Source excerpt

a provider; or

Section 7-27-101(2)(b)(i)Verify source

§ 7-27-101(2)(b)(ii)Subsection 7-27-101(2)(b)(ii)Provision

Source excerpt

a person whose compensation is not based or dependent on the terms of a specific commercial financing product that the person obtains or offers.

Section 7-27-101(2)(b)(ii)Verify source

§ 7-27-101(3)Subsection 7-27-101(3)Provision

Source excerpt

"Business" is defined as a private enterprise carried on for gain or economic profit.

"Business" means a private enterprise carried on for the purpose of gain or economic profit.

Section 7-27-101(3)Verify source

§ 7-27-101(4)Subsection 7-27-101(4)Provision

Source excerpt

A business-purpose transaction is one whose proceeds are provided to the business or intended for the business, and it does not include proceeds intended for personal, family, or household use.

"Business purpose transaction" means a transaction from which the resulting proceeds that a business receives are: provided to the business; or intended to be used to carry on the business. "Business purpose transaction" does not include a transaction from which the resulting proceeds are intended to be used for personal, family, or household purposes. For purposes of determining whether a transaction is a business purpose transaction, a provider may rely on a written statement of intended purpose, signed by an individual authorized to sign on behalf of the business. The written statement may be contained in an application, agreement, or other document signed by an individual authorized to sign on behalf of the business.

Section 7-27-101(4)Verify source

§ 7-27-101(4)(a)Subsection 7-27-101(4)(a)Provision

Source excerpt

Defines “business purpose transaction” as a transaction whose resulting proceeds received by a business are provided to the business or intended to be used to carry on the business.

"Business purpose transaction" means a transaction from which the resulting proceeds that a business receives are: provided to the business; or intended to be used to carry on the business.

Section 7-27-101(4)(a)Verify source

§ 7-27-101(4)(a)(i)Subsection 7-27-101(4)(a)(i)Provision

Source excerpt

provided to the business; or

Section 7-27-101(4)(a)(i)Verify source

§ 7-27-101(4)(a)(ii)Subsection 7-27-101(4)(a)(ii)Provision

Source excerpt

intended to be used to carry on the business.

Section 7-27-101(4)(a)(ii)Verify source

§ 7-27-101(4)(b)Subsection 7-27-101(4)(b)Provision

Source excerpt

A transaction is not a “business purpose transaction” if the resulting proceeds are intended for personal, family, or household use.

"Business purpose transaction" does not include a transaction from which the resulting proceeds are intended to be used for personal, family, or household purposes.

Section 7-27-101(4)(b)Verify source

§ 7-27-101(4)(c)Subsection 7-27-101(4)(c)Provision

Source excerpt

A provider may rely on a signed written statement of intended purpose when deciding whether a transaction is a business purpose transaction.

For purposes of determining whether a transaction is a business purpose transaction, a provider may rely on a written statement of intended purpose, signed by an individual authorized to sign on behalf of the business. The written statement may be contained in an application, agreement, or other document signed by an individual authorized to sign on behalf of the business.

Section 7-27-101(4)(c)Verify source

§ 7-27-101(5)Subsection 7-27-101(5)Provision

Source excerpt

“Commercial financing transaction” means a business purpose transaction meeting the stated transaction types.

"Commercial financing transaction" means a business purpose transaction: under which a person extends a business a commercial loan or a commercial open-end credit plan; or that is an accounts receivable purchase transaction.

Section 7-27-101(5)Verify source

§ 7-27-101(5)(a)Subsection 7-27-101(5)(a)Provision

Source excerpt

under which a person extends a business a commercial loan or a commercial open-end credit plan; or

Section 7-27-101(5)(a)Verify source

§ 7-27-101(5)(b)Subsection 7-27-101(5)(b)Provision

Source excerpt

that is an accounts receivable purchase transaction.

Section 7-27-101(5)(b)Verify source

§ 7-27-101(6)Subsection 7-27-101(6)Provision

Source excerpt

“Commercial loan” means a loan to a business, whether or not it is secured.

"Commercial loan" means a loan to a business, regardless of whether the loan is secured.

Section 7-27-101(6)Verify source

§ 7-27-101(7)Subsection 7-27-101(7)Provision

Source excerpt

Defines a “commercial open-end credit plan” as commercial financing to a business with expected repeat transactions and replenishment as repayments are made, subject to any creditor-set limit.

"Commercial open-end credit plan" means commercial financing extended to a business on terms under which: the creditor reasonably contemplates repeat transactions; and subject to any limit set by the creditor, the amount of financing that the creditor may extend to the business during the term of the plan is made available to the extent that any outstanding balance is repaid.

Section 7-27-101(7)Verify source

§ 7-27-101(7)(a)Subsection 7-27-101(7)(a)Provision

Source excerpt

The creditor reasonably contemplates repeat transactions.

the creditor reasonably contemplates repeat transactions; and

Section 7-27-101(7)(a)Verify source

§ 7-27-101(7)(b)Subsection 7-27-101(7)(b)Provision

Source excerpt

A creditor may extend financing to a business during the plan term, subject to any limit the creditor sets and to repayment of any outstanding balance.

subject to any limit set by the creditor, the amount of financing that the creditor may extend to the business during the term of the plan is made available to the extent that any outstanding balance is repaid.

Section 7-27-101(7)(b)Verify source

§ 7-27-101(8)Subsection 7-27-101(8)Provision

Source excerpt

“Motor vehicle dealer” is defined as a dealer under Section 41-3-102.

"Motor vehicle dealer" means a dealer as defined in Section 41-3-102 .

Section 7-27-101(8)Verify source

§ 7-27-101(9)Subsection 7-27-101(9)Provision

Source excerpt

Defines “provider” as a person who does more than five commercial financing transactions in the state in a calendar year, and includes certain persons acting under written agreement with a depository institution through an online platform they administer.

"Provider" means a person who consummates more than five commercial financing transactions in the state during any calendar year. "Provider" includes a person who, under a written agreement with a depository institution, offers one or more commercial financing products provided by the depository institution via an online platform that the person administers.

Section 7-27-101(9)Verify source

§ 7-27-101(9)(a)Subsection 7-27-101(9)(a)Provision

Source excerpt

“Provider” means a person who completes more than five commercial financing transactions in the state in any calendar year.

"Provider" means a person who consummates more than five commercial financing transactions in the state during any calendar year.

Section 7-27-101(9)(a)Verify source

§ 7-27-101(9)(b)Subsection 7-27-101(9)(b)Provision

Source excerpt

Defines “provider” to include a person meeting the stated online-platform and written-agreement conditions.

"Provider" includes a person who, under a written agreement with a depository institution, offers one or more commercial financing products provided by the depository institution via an online platform that the person administers.

Section 7-27-101(9)(b)Verify source

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Utah Code § 7-27-101

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