Wednesday, December 24, 2014
On September 20, 2014, the Governor signed Assembly Bill 2209 (Chapter 499, Statutes of 2014). The bill, among other things, changed receipt requirements for money transmitters. These new requirements become effective January 1, 2015. http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2209&search_keywords=
Posted by Alan Abergel at 11:22 AM
Tuesday, December 23, 2014
SB 1181, TAKING EFFECT JANUARY 1, 2015, CLARIFIES THE CALIFORNIA FINANCE LENDERS LAW VENTURE CAPITAL EXEMPTION.
On June 28, 2014, Governor Brown signed Senate Bill 1181 (Chapter 68, Statutes of 2014), which becomes effective on January 1, 2015. SB 1181 revises provisions of the California Finance Lenders Law that relate to venture capital companies, effective January 1, 2015. Specifically, the bill: (1) increases the term of commercial bridge loans from one year to three years; and (2) exempts from the California Finance Lenders law specified investments made by venture capital companies in operating companies. Current law is silent as to whether venture capital investments in operating firms represent loans or investments in securities. SB 1181 clarifies that the California Finance Lenders Law does not apply to venture capital investments in equity securities issued by venture capital-backed operating companies. The bill exempts from the California Finance Lenders Law a venture capital investment made by a venture capital company in an equity security, as defined, issued by an operating company. The bill states that the definition of "equity security" is the same as its meaning in Section 3(a)(11) of the federal Securities Exchange Act of 1934. The federal Securities Exchange Act of 1934 defines “equity security” as any stock or similar security; or any security future on any such security; or any security convertible into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the U. S. Securities and Exchange Commission shall deem to be of similar nature and consider necessary or appropriate to treat as an equity security.
Posted by Alan Abergel at 10:51 AM