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2025 California Code
Financial Code - FIN
DIVISION 9.5 - Commercial Financing Disclosures
Section 22806.

Universal Citation:
CA Fin Code § 22806 (2025)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
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22806. (a) A provider shall not use the term “interest” or “rate” in a deceptive way that could reasonably result in the recipient being misled.

(b) After extending a specific offer to a potential recipient, whenever a provider states a charge, pricing metric, or financing amount to the potential recipient for that specific offer during an application process for commercial financing, the provider shall also state the annual percentage rate of that commercial financing offer by using the term “annual percentage rate” or the acronym “APR.”

(c) Use of the term “interest” or “rate” is not deceptive or likely to mislead for purposes of this division if the metric of financing cost is an annual interest rate or annual percentage rate that is either fixed or floating for the period of the financing and that is expressed as a margin over an index rate.

(Added by Stats. 2025, Ch. 352, Sec. 4. (SB 362) Effective January 1, 2026.)

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