Truth in Lending Act (TILA): Federal law requiring disclosure of credit terms and standardized calculation of financing charges and annual percentage rates
Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in credit transactions based on race, color, religion, national origin, sex, marital status, age, or public assistance program participation
Securities Act of 1933: Federal law that may apply if the financing arrangement could be considered a security, requiring registration and disclosure requirements
UCC Article 9: Uniform Commercial Code provisions governing secured transactions, including creation and perfection of security interests in business assets
State Usury Laws: State-specific laws that set maximum legal interest rates and regulate lending practices within the state
State Commercial Codes: State-specific variations of commercial laws that govern business transactions and agreements
State Contract Laws: State-specific laws governing contract formation, enforcement, and remedies
Bankruptcy Laws: Federal and state laws affecting creditor rights and remedies in case of buyer default or bankruptcy
IRS Regulations: Federal tax regulations specific to seller financing arrangements, including interest income reporting requirements
State Licensing Requirements: State-specific licensing and registration requirements for engaging in seller financing activities
Due Diligence Requirements: Legal obligations for proper verification and investigation of buyer's financial status and business history
Disclosure Requirements: Mandatory federal and state requirements for disclosing material terms and conditions of the financing arrangement
Security Interest Requirements: Legal requirements for creating, perfecting, and maintaining security interests in business assets used as collateral
Default and Remedies Provisions: Legal framework governing default scenarios and available remedies for the seller-financier
Transfer Restrictions: Legal considerations regarding the transferability of the financing agreement and associated rights
