[creloan]

Really?

Maryland State Legislators Want to Enact “Prohibition” on Merchant Cash Advances

https://debanked.com/2020/02/marylan...cash-advances/

No elaboration at all.

[fundingsmbs]

"AN ARRANGEMENT BETWEEN A BUYER AND A SELLER IN WHICH THE BUYER AGREES TO PURCHASE AN AGREED–ON PERCENTAGE OF FUTURE CREDIT CARD REVENUES OR DEBIT CARD REVENUES THAT ARE DUE TO A SELLER FOR A PREDETERMINED PURCHASE PRICE "

so all funder's who use charter banks to place loans would fall outside this bill?

[Sean Cash]

so all funder's who use charter banks to place loans would fall outside this bill?

Yes, it's aimed entirely at the narrow practice of the sale of future credit and debit card sales.

[WestCoastFunding]

Yes, it's aimed entirely at the narrow practice of the sale of future credit and debit card sales.

So it wouldn’t affect factoring, I assume. But how can they ban business to business sales? I can’t imagine that would be constitutional.

[ADiamond]

So it wouldn’t affect factoring, I assume. But how can they ban business to business sales? I can’t imagine that would be constitutional.

It's a very vague statement "debit & credit card sales" - so it wouldn't affect MCA agreements for ACH remits on future AR outside of debit/CC sales?

"predetermined purchase price" - I don't know how but I'm sure will be legal loop holes around that as well.

-

Are B2B sales in the constitution? lol!

[WestCoastFunding]

Are B2B sales in the constitution? lol!

Yes. It’s called the “Commerce clause” which states that the US Congress has the power to regulate interstate commerce. This power is not granted to the state government unless both parties are within the state. So the argument would be made that they could potentially regulate a buyer and seller within the state, but once the transaction happens with companies across state lines, the US Congress would have to be involved in the regulation of interstate commerce. Thus: the argument would be made its unconstitutional. And with the current makeup of the DC court of appeals being 5-4 republican, and with SCOTUS being 5-4 the same way, such a law would have an uphill battle.

[SFC]

Yes. It’s called the “Commerce clause” which states that the US Congress has the power to regulate interstate commerce. This power is not granted to the state government unless both parties are within the state. So the argument would be made that they could potentially regulate a buyer and seller within the state, but once the transaction happens with companies across state lines, the US Congress would have to be involved in the regulation of interstate commerce. Thus: the argument would be made its unconstitutional. And with the current makeup of the DC court of appeals being 5-4 republican, and with SCOTUS being 5-4 the same way, such a law would have an uphill battle.

Yes but who's going to be the first company with the stones to do it and who's going to be willing to pay for millions in legal costs to get there, over a $35,000 MCA?

[SFC]

Really?

Maryland State Legislators Want to Enact “Prohibition” on Merchant Cash Advances

https://debanked.com/2020/02/marylan...cash-advances/

No elaboration at all.

Super impressed with Maryland right now. They didn't even pass the law and they STILL managed to shut the MCA industry down!