Section 956 - Funding Recipient Will Receive(a) When a provider provides a disclosure (either directly to the recipient or to a broker) under sections 910 through 917, and the amount financed is greater than the recipient funds, the provider shall also provide a disclosure entitled "Itemization of Amount Financed". The disclosure shall be substantially similar in form to the example disclosure provided in subdivision (b) below, including at a minimum: (1) The recipient funds, described as "Amount Given Directly to You."(2) The amount credited to the recipient's account with the financer, described as "Amount Paid on your Account with Us" followed by the account number, if applicable. Where the amount to be credited to the recipient's account may vary based upon changes to the outstanding balance due on the recipient's account, a disclosure shall be considered accurate if it is accurate at the time the disclosure is provided.(3) Any amounts paid to other persons by the financer on the recipient's behalf, each listed on a separate line. The disclosure shall identify those persons. The following payees may be described using generic or other general terms and need not be further identified: a recipient's supplier or retailer, public officials or government agencies, credit reporting agencies, appraisers, and insurance companies. Where an amount disclosed pursuant to this section may change based upon changes to the outstanding balance due under the recipient's other obligations, a provider's disclosure of a payoff amount shall be considered accurate if it is accurate at the time the disclosure is provided.(4) The sum of the amounts described in paragraphs (a)(1), (2), and (3), described as "Amount Provided to You or on Your Behalf", followed by a reference to how the amount was calculated (e.g., "Sum of Items 1-7.").(5) The prepaid finance charge, described as "Prepaid Finance Charge" or "Prepaid Finance Charges", as applicable, followed by a description of the purpose of the charge or charges (e.g., "Brokerage Fee").(6) The amount financed, described as "Amount Financed", followed by a reference to how the amount was calculated (e.g., "Item 5 minus Item 4.").(b)(1) Example disclosure for transactions where no part of the amount financed is credited to the recipient's account with the financer: ITEMIZATION OF AMOUNT FINANCED |
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| 1. Amount Given Directly to You | $8,900 |
| 2. Property Valuation Fee paid to [_____] | $100 |
| 3. Brokerage Fee paid to [_____] | $1,000 |
| 4. Amount Provided to You or on Your Behalf (1+2+3) | $10,000 |
| 5. Prepaid Finance Charges: Brokerage Fee | $1,000 |
| 6. Amount Financed (4 minus 5) | $9,000 |
(2) Example disclosure where part of the amount financed is credited to the recipient's account with the financer: ITEMIZATION OF AMOUNT FINANCED |
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| 1. Amount Given Directly to You | $8,900 |
| 2. Property Valuation Fee paid to [_____] | $100 |
| 3. Brokerage Fee paid to [_____] | $1,000 |
| 4. Amount Paid on your Account with Us (#XXXXX) | $2,000 |
| 5. Amount Provided to You or on Your Behalf (1+2+3+4) | $12,000 |
| 6. Prepaid Finance Charges: Brokerage Fee | $1,000 |
| 7. Amount Financed (5 minus 6) | $11,000 |
(c) The disclosure required by subdivision (a): (1) Shall appear as a document separate from the disclosures required by sections 910 through 917;(2) Shall appear immediately following the disclosures required by sections 910 through 917;(3) Need not be signed by the recipient; and(4) May include a description of any assumptions the provider used to make the disclosure below the information required by subdivision (a).Cal. Code Regs. Tit. 10, § 956
1. New section filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section 11343.4(b)(2) (Register 2022, No. 23). Transmission deadline specified in Government Code section 11346.4(b) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20. Note: Authority cited: Sections 321 and 22804, Financial Code. Reference: Sections 22800, 22802, 22803 and 22804, Financial Code.
1. New section filed 6-9-2022; operative 12/9/2022 pursuant to Government Code section 11343.4(b)(2) (Register 2022, No. 23). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.