(a) A provider shall not use the term âinterestâ or ârateâ 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 âannual percentage rateâ or the acronym âAPR.â (c) Use of the term âinterestâ or ârateâ 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.
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