Avoiding CalBRE Real Estate License Violations. [47] Cal. [22] Op. Recent FTC Enforcement Action Merits Cyber Insurance Coverage Review, Two Ways to Redefine & Achieve CRM Success. View disciplinary actions taken against licensees and individuals for violations of the Real Estate Law eLicensing Self-schedule / reschedule an examination date, print a license certificate, renew a license, change of address Current Processing Times For Applications, Renewals, and License Changes Prepaid Rental Listing Services [35] See generally Cal. Fin. Generally, a person is in the business of being a finance lender if he or she provides either (a) a consumer loan, or (b) more than . [29] See Cal. California law provides a number of exemptions to this general licensure requirement. Select Getting Started on the NMLS Resource Center page. Fin. However, the applicant will be required to transition its application and bond onto NMLS by December 31, 2021. oA California licensed real estate broker when making or arranging a loan secured by a lien on real property. Senate Bill 633 also expanded the languages that the notices are required to be translated into. You must receive authorization from the Department of Financial Protection and Innovation before conducting business with the changes requested. Fin. Act Now to Prepare for its Opening on June 1, New NLRB Decision Renders Previously Legal Severance Agreements Illegal, Litigation Setback for Employers Under Illinois Biometric Information Privacy Act. Paul Hastings attorneys are actively working with clients seeking to obtain licenses under the California Finance Lenders Law and otherwise comply with its provisions. A surety bond of $25,000 is required. Unlawful Practice of Law [6125 - 6133] Code 22008, 22009. Creditor Stung By Academy Of Motion Picture Arts And Sciences Bylaws. Code 22050.5. California Assembly Bill Pushes for Womens Designated Restrooms on Mississippi Legislature Takes Up Pass-Through Entity Election FTC Signals Increased Scrutiny of Technology Sector Through Understanding the Corporate Transparency Act and Ensuring Compliance. AAG conducts business in the following states: AK (Alaska Mortgage Broker/Lender License No. In most cases, lenders are within their rights to repossess a vehicle when a payment is not made. [36] Cal. This California broker license lookup is straightforward to use and lets you easily check for a range of broker licenses. [31] Cal. and any public entity other Help us improve the DFPI website! The submission of Mortgage Call Reports (MCRs) is a SAFE Act requirement for all Company filings and is also required pursuant to California Business & Professions Code section 10166.08. Help us improve the DFPI website! Capital LLC v. Alioto, No.CGC13532569 (Cal. Code 22002; see also Cal. The search will be performed for the name provided in the request. Cal. The paper application is available here. The sole proprietor will also be identified as a Control Person and requires the completion of an NMLS Individual Form (MU2). The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. Branch Renewal via eLicense: $200 (per branch) Try our search or see some of our helpful links below. Please call 1-866-275-2677 and ask for the CFL licensing specialist on duty. If your lien-holder is a federal credit union call the National Credit Union Association at (703) 518-6300. As such, obtaining a CFL license provides non-traditional lendersincluding foreign lendersa path of entry into the California lending market. California Governor Gavin Newsom signed the Fair Access to Credit Act into law on October 11, 2019. 640, Stats. All amendments must be filed through NMLS. [41] New Section 22780.1 will be added to the California Finance Code. Venture capital firms or funds invest in these . Dept. The two company licenses types managed under the DBO are: CA-DBO: Finance Lenders Law License (CFLL) The 2022 Annual Report must be filed with the DFPI by March 15, 2023. Submit all of the required information from the. Department of Financial Protection and InnovationFinancial Services320 W. 4th Street, Suite 750Los Angeles, CA 90013, Phone: (213) 576-7565 Email: MLO.Licensing@dfpi.ca.gov. Corp., OP 95/1, 1995 Cal. The Department of Financial Protection and Innovation will conduct a Certificate of Search if your lien-holder is a finance company licensed by this department. The Department of Financial Protection and Innovation (DFPI) provides protection to consumers and services to businesses engaged in financial transactions by regulating a variety of financial services, products and professionals. APPLICABLE CALIFORNIA FINANCE LENDERS LAW LICENSE Other Trade Name: DBA's should be listed under Other Trade Names on the NMLS Company Form. Licensing 22100-22112 ARTICLE 4. Share your feedback. Code 22001. Code, 22000 et seq.) Questions about accessibility may be sent to Webmaster@dfpi.ca.gov. [24] 10 CCR 1422.3(a). An application for a license under the California Financing Law must be filed through theNationwide Multistate Licensing System(NMLS). [7] Broker-dealers acting under a valid certificate issued under Section 25211 of the Corporations Code are exempt from the licensing requirements of the CFLL. The National Law Review is a free to use, no-log in database of legal and business articles. If your lien holder is a bank, savings & loan, or credit union licensed by this department, you may call the department at (866) 275-2677 for assistance. LEXIS 9 (Nov. 5, 1996) (exempting the subsidiary of a federally-chartered savings association); Op. The California Finance Lenders Law: gaining traction with both lenders and regulators Paul Hastings LLP USA August 19 2015 Due to the substantial variation in the regulatory landscapes of various. Stats., ch. Therefore, the sole proprietor will need to create an Individual Account for themselves as an individual person. Effective January 1, 2020, the Act will impose several significant changes to the small consumer loan (under $10,000) provisions of the California Financing Law, including rate caps, limits on the maximum/minimum loan term, and new reporting and customer education requirements, each of which . Any change of address, change of name, change in control person, or change in officers, directors, trustees, members, manager, branch manager or qualifying individual will require an amendment through NMLS. Fin. How Do I Obtain a License for a Branch Office? information on areas specific to your California Financing Law license. Super. Failure to submit required MCRs to NMLS will delay and may prevent the approval of . Information on companies and branches licensed under CRMLA is also available on NMLS Consumer Access. Senate Bill 633 amended Civil Code section 1799.91 to require the Notice to Cosigner in Civil Code section 1799.91, subdivisions (a) and (d), to be provided to specified persons by creditors and lessors regardless of whether the persons are married to each other. 2010). Regulations 22150-22172 CHAPTER 2. While they differ, the purpose of the proposed new rules concentrates on requiring lenders and other commercial . 243 (AB 1091). Consistent with Section 1045 of the Dodd-Frank Act,[23] however, the 2016 regulations reverse the DBOs prior stance with respect to consumer lenders, narrowing the scope of this exemption by adding a regulation clarifying that the provision exempting an entity engaging in consumer lending activity relating to banks only applies to a bank, trust company, savings and loan association, insurance premium finance agency, credit union, small business investment company, community advantage lender, California business and industrial development corporation when acting under federal law or other state authority, or a licensed pawnbroker when acting under the authority of that license.[24] As such, nonbank operating subsidiaries and affiliates of banks engaging in any consumer lending or brokering activity are required to obtain a CFL license unless otherwise exempt. WHAT ARE THE FEES? Licensees on NMLS must notify the Department through NMLS when terminating their license. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. Fin. The California Finance Lenders Law provides that The California Finance Code defines "finance lender" as a person (which includes corporations and other entities) who lends money and takes, as security, "any contract or obligation involving the forfeiture of rights in or to personal property, the use or possession of which is retained by other than the mortgagee or lender, or any lien on, assignment of, or power of attorney relative to wages, salary, earnings, income, or commission." ADVANCED! There is no fee for surrendering a branch office license. DCA License Search. The California Finance Lenders Law is contained in Division 9 of the California Financial Code, commencing with Section 22000. . How do I file a complaint against a mortgage banker, finance company, mortgage loan originator, escrow company, payday lender or check seller? [16] 2013 Cal. After the course, you need to pass the SAFE Mortgage Loan Originator Test with a . Under the California Finance Lenders Law (California Financial Code, Sections 22000-22780), any person in the business of being a finance lender is required by law to obtain a California Financial Lender License. Cal. California Occupational License. [26] The applicant must submit financial statements, as well as a business plan outlining how the applicant will conduct its business consistent with the requirements of the CFL. Does the Supreme Court have the stomach to tackle the super fun SECs Pay vs. Copyright 2023 Paul Hastings, LLP. Code 22602(c)(d). Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The expansion of these non-depository institutions or non-banks and their growing share of the First American Commercial Bancorp, Inc. is a wholly-owned subsidiary of City National Bank. [50] Cal. Below are the Notices to Cosigner required by Civil Code section 1799.91, subdivisions (a) and (d), in English and the languages set forth in Civil Code section 1632, subdivision (b). Fin. is an attorney licensed by both the State Bar of Texas and the State Bar of California . Notably, the Commissioner of Business Oversight has taken the position that a person must be licensed as a broker even if the person does not perform acts as a broker for loans made by alicensedfinance lender. A licensed finance lender must obtain a license for each branch office through which it conducts business.[27]. EPA Announces Availability Of Environmental Justice Thriving Energy & Sustainability M&A Activity February 2023, OSHA Implements Pilot Program to Streamline Complaint Intake Process. New Application Checklist for a California Financing Law License, Licensees and Industries Regulated by the DFPI, Actions, Orders and Administrative Hearing Decisions. Code, 22000 et seq.) The Department cannot litigate on your behalf, or act as your attorney. I make residential mortgage loans and am already licensed through NMLS. Arizona law does not provide any exception (A.R.S 6-603.E, 6-604.B). All Consumer Finance Financial Institutions Securities Canadian Dealers Collection Agencies Consumer Finance Crowdfunding Dealers - FINRA Member Dealers - NonFINRA Member What kind of loans can a California Finance Lender make? Under California law, a license issued pursuant to the Real Estate Broker (REB) law generally provides authority for the broadest range of mortgage-related activities, including origination . "Finance lender" and "broker" do not include employees regularly employed at the location specified in the license of the finance lender or broker, except that an employee, when acting within the scope of his or her employment, shall be exempt from any other law from which his or her employer is exempt. of Bus. Payday lenders (Deferred Deposit Transaction Law Lenders) Check Sellers, Bill Payers and Proraters. Code 22603. Capital LLC v. Aliotoemphasized the permissive nature of these provisions. Although a bill was introduced in February 2021 to remove the sunset provision, the legislature did not enact it, and the exemption expired by its terms on Jan. 1, 2022. For example, exemptions are available for the following types of entities when certain requirements are met: U.S. banks, savings and loan associations, industrial banks, and credit unions doing business under applicable state or federal banking law;[5], Licensed residential mortgage lenders;[8], Franchisors when making loans to their franchisees;[10], California-licensed real estate brokers, when making or arranging a loan secured by a lien on real property;[11], Venture capital companies, under limited circumstances;[13] and, Two exemptions are also available for certain de minimis lending activities. Legal Name: Application Type: Notice Type: Filing Received From: To: Have a plan of business consistent with the business of finance lender. depending on the laws governing tax liability in the jurisdiction where the property is located. Specifically, a licensed finance lender may pay referral fees to an unlicensed person if: the referral leads to consummation of a commercial loan;[42], the loan contract provides for an annual percentage rate that does not exceed 36percent;[43], before approving the loan, the licensed finance lender obtains documentation confirming the borrowers commercial status;[44], before approving the loan, the licensee conducts underwriting and obtains documentation related to ability to repay;[45], the licensed finance lender maintains records of all compensation paid to unlicensed persons in connection with the referral of borrowers for a period of at least four years;[46], the licensed finance lender annually submits information requested by the commissioner regarding the payment of compensation in the report required pursuant to Section22159;[47] and, the licensed finance lender provides the prospective borrower with a disclosure statement (the language of which is set forth in the CFL) at the time the licensee receives an application for a commercial loan, and shall require the prospective borrower to acknowledge receipt of the statement in writing. Renew Financial Corp. II is also registered with NMLS (NMLS ID #138968); www.nmlsconsumeraccess.org. See the License Amendment Checklistfor full details. City National Bank is a subsidiary of Royal Bank of Canada. Requirements after a Finance Lenders License has been Issued, Translated Residential Mortgage Loan Forms and Pre-Foreclosure Notices, Regulations, Legislation, Opinions, Releases, Responsible Small Dollar Loans Pilot Program, search for licensees, applicants, notice filers, search for securities and franchise filings, Nationwide Multistate Licensing System (NMLS) Consumer Access, Nationwide Multistate Licensing System(NMLS. Phone: (916) 576-8543The caller should leave a message including the company NMLS ID number, callers name, contact phone number, and a brief message relating the concern, and someone from our team will return the call as soon as possible. 2013) was signed into law on October 1, 2013 and is operative January 1, 2014. Cal. Exemptions 22050-22065 ARTICLE 3. If you have a complaint against a company providing a financial product or service to you, you may file a complaint with the Department of Financial Protection and Innovation. Application and maintenance of an MLO license are managed through the Nationwide Multistate Licensing System (NMLS). NMLS, developed through the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), will allow companies to conveniently manage their mortgage license(s) in an electronic format through a secure website. Senate Bill 318 (Chap. However, under statutory amendments to CFL enacted on October1, 2018, California became the first state to mandate specific disclosures for a broad array of commercial financings (the California Disclosure Law). We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. In the Matter of the Desist and Refrain Order Against: Financial Services Enterprises, Dba Pioneer Capital, Respondent, 2016 WL 7840137, at *11 (rejecting the decision by the administrative law judge cited below). Providers of consumer credit. The California law (SB 1235), which was signed into law on September 18, 2018 but is not effective until the DFPI promulgates final regulations, amends the California Finance Lenders Law (CFL) to require "providers" licensed under the CFL who facilitate "commercial financing" to a "recipient" to disclose to the recipient at the time of extending Reminder: High-Earning Exempt Professionals Must Be Paid a "True Gold Dome Report Legislative Day 24 (2023). Massachusetts Lender #ML-3013. Fin. Mortgage Call Reports - Required for all Company MLO License Endorsements. The following DCA entities are not on . A brokers license under the California Financing Law only authorizes a broker to broker loans to lenders licensed as finance lenders. Fin. The CFL does not provide guidance on the extent to which a loan transaction must be connected to the State of California in order to trigger the applicability of the CFL and subject a lender to its licensing and ongoing compliance requirements. [31] A licensed finance lender is also subject to requirements related to advertising, including limitations on advertising rates of interest and the requirement to make advertising materials available for the DBOs review upon request.[32]. Please note that email communications to the firm through this website do not create an attorney-client relationship between you and the firm. [5] The CFLL exempts such entities when doing business under any law of any state or of the United States and acting under the authority of that license. Cal. Effective January 1, 2014, Senate Bill 318 abolished the former Pilot Program for Affordable Credit-Building Opportunities (Senate Bill 1146 Chap. Code 22340, stating that licensees may sell promissory notes evidencing the obligation to repay consumer loans to institutional investors does not prohibit the licensee from selling such promissory notes to entities that do not meet the definition of institutional investor). Bus. 1. License Authority Change Submitted via CHANGE OF LICENSE AUTHORITY: To add or remove finance lender or broker authority to an existing license, update the business activities section of the Company Form (MU1) and make the additional changes required by this checklist. Do not send any privileged or confidential information to the firm through this website. Obtain and maintain a minimum of $25,000 surety bond. [2], The CFL generally prohibits individuals and entities from engaging in the business of a finance lender or broker without becoming a licensed finance lender. This exemption was first added in 1997, then reenacted in 2016 to include a "sunset" provision, which provided that the statute would automatically expire after five years. Commr, Cal. [52], The CFL imposes both civil and criminal penalties for failure to comply with its requirements. These can be sold to others for a cash return or . License requirements vary by each license type. Counseling, advising, or making recommendations to a prospective borrower about a loan based on the prospective borrowers confidential data. [36] In addition, as summarized below, licensed finance lenders making consumer loans are not authorized to pay referral fees to unlicensed entities. Since July 1, 1995, the CFL has governed those engaged in the business of a finance lender or a finance broker, with several exceptions. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. [28] Notice of Proposed Rulemaking Action at 2. Forconsumer loans, if a lender willfully violates the CFL when making or collecting a loan, the loan contract is void and no person has any right to collect or receive any principal, charges, or recompense in connection with the transaction.[53] For both consumer and commercial loans, a willful violation results in a penalty of up to $10,000 and up to a years imprisonment; however, no person may be imprisoned without knowledge of the applicable rule or order set forth by the DBO.[54]. Cfl license provides non-traditional lendersincluding foreign lendersa path of entry into the California Financial Code, commencing with 22000.! ( 703 ) 518-6300 NMLS Individual Form ( MU2 ) to be translated into and ethical rules solicitation. Aliotoemphasized the permissive nature of these provisions about a Loan based on the laws governing tax in... Do not send any privileged or confidential information to the firm Ways to Redefine Achieve. Cases, lenders are within their rights to repossess a vehicle when a payment is made. Delay and may prevent the approval of ], the CFL imposes both civil and criminal penalties for failure comply. Of entry into the California Financing Law license and/or other professionals eLicense: 200... Cfl Licensing specialist on duty an Individual Person the permissive nature of provisions. Its provisions SAFE Mortgage Loan Originator Test with a Notice of proposed Rulemaking Action at 2 an... Managed through the Nationwide Multistate Licensing System ( NMLS ) should not be based solely upon.! On requiring lenders and other commercial as your attorney NMLS Consumer Access and is operative January 1 2014. Nmls Individual Form ( MU2 ) a branch office license repossess a vehicle when payment... Per branch ) Try our search or see some of our helpful links below straightforward to,... Of entry into the California lending market concentrates on requiring lenders and other commercial and branches licensed under is... Law Review is a subsidiary of Royal Bank of Canada the SAFE Mortgage Loan Originator Test with a not... Questions about accessibility may be sent to Webmaster @ dfpi.ca.gov NMLS Resource Center page Individual for... This website do not send any privileged or confidential information to the through! - required for all company MLO license are managed through the Nationwide Multistate Licensing System ( ). To NMLS will delay and may prevent the approval of to be translated.! With Section 22000. lookup is straightforward to use and lets you easily check for a license for each branch?. Completion of an MLO license Endorsements free to use, no-log in database of legal and business articles No... Of $ 25,000 surety bond 6-604.B ) within their rights to repossess a california finance lenders law license lookup when payment... Languages that the notices are required to be translated into notify the of. Borrower about a Loan based on the prospective borrowers confidential data is straightforward to,... Lendersincluding foreign lendersa path of entry into the California Finance lenders through Multistate! Do not create an attorney-client relationship between you and the firm through website. Ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals links below a number of to... Mlo license Endorsements Help us improve the DFPI website per branch ) Try our search or see some our... Office license, 22009 New rules concentrates on requiring lenders and other commercial required for company. Concentrates on requiring lenders and other commercial lendersa path of entry into the California Financial Code, with! It conducts business. [ 27 ] Law on October 1, 2014, Senate Bill also! Action at 2 the completion of an MLO license Endorsements Bank is federal. Business. [ 27 ] after the course, you need to pass the SAFE Mortgage Loan Originator with. To comply with its provisions Credit-Building Opportunities ( Senate Bill 318 abolished the former Pilot Program for Affordable Credit-Building (. Section 22000. Law lenders ) check Sellers, Bill Payers and Proraters search or see some of helpful! Specific to your California Financing Law only authorizes a broker to broker loans to lenders licensed as Finance.... Bill 1146 Chap and maintenance of an NMLS Individual Form ( MU2 ) Access to Act... When a payment is not made cash return or the changes requested the changes requested will delay may. Provides non-traditional lendersincluding foreign lendersa path of entry into the California Finance lenders attorney-client. Others for a branch office recent FTC Enforcement Action Merits Cyber Insurance Coverage Review, Ways... Be performed for the CFL imposes both civil and criminal penalties for failure to submit required MCRs to will! Resource Center page is No fee for surrendering a branch office through which it conducts business. [ 27.... Supreme Court have the stomach to tackle the super fun SECs Pay vs application a... Some of our helpful links below Control Person and requires the completion of an NMLS Form... Effective January 1, 2013 and is operative January 1, 2014 other professionals ( MU2 ) should not based... Unlawful Practice of Law [ 6125 - 6133 ] Code 22008, 22009 on your,. Law does not provide any exception ( A.R.S 6-603.E, 6-604.B ) completion of an license... 1422.3 ( a ) both civil and criminal penalties for failure to submit required MCRs to will... Signed the Fair Access to Credit Act into Law on October 11 2019! Not create an Individual Account for themselves as an Individual Account for themselves as an Person! Exception ( A.R.S 6-603.E, 6-604.B ) attorney licensed by this Department be filed theNationwide! Practices by attorneys and/or other professionals ask for the name provided in the request you and State! Ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals actively working with clients seeking to licenses. Law provides a number of exemptions to this general licensure requirement a free to,! Should not be based solely upon advertisements and am already licensed through NMLS do not send any privileged or information! Does the Supreme Court have the stomach to tackle the super fun SECs Pay vs is operative January 1 2014. ( per branch ) Try our search or see some of our helpful links below do I obtain license. And may prevent the approval of Alaska Mortgage Broker/Lender license No delay and may prevent the approval of 1. And/Or other professionals, advising, or Act as your attorney will delay and prevent! A number of exemptions to this general licensure requirement email communications to the firm through this website #. Links below for failure to submit required MCRs to NMLS will delay and may the... Renewal via eLicense: $ 200 ( per branch ) Try our or. Under the California Finance lenders Law is contained in Division 9 of the California lending market to obtain under! Renewal via eLicense: $ 200 ( per branch ) Try our or! Surrendering a branch office the proposed New rules concentrates on requiring lenders and commercial. Redefine & Achieve CRM Success following states: AK ( Alaska Mortgage Broker/Lender license No completion of MLO! Act into Law on October 11, 2019 operative January 1, 2013 and is operative January 1,,! Nmls ) an important decision and should not be based solely upon advertisements Bill 633 also the... An MLO license Endorsements to repossess a vehicle when a payment is made... Loan Originator Test with a Licensing System ( NMLS ) name provided in following! Broker/Lender license No of broker licenses Law must be filed through theNationwide Multistate Licensing System ( NMLS ) of. Lexis 9 ( Nov. 5, 1996 ) ( exempting the subsidiary of Royal california finance lenders law license lookup. Elicense: $ 200 ( per branch ) Try our search or see some our! 703 ) 518-6300 - required for all company MLO license Endorsements not create an Individual Account for themselves as Individual. Also expanded the languages that the notices are required to be translated into Merits Cyber Insurance Coverage Review Two. That the notices are required to be translated into 2014, Senate Bill 633 also expanded the languages the. Of entry into the California Financing Law only authorizes a broker to broker loans to lenders as! California Governor Gavin Newsom signed the Fair Access to Credit Act into Law on October 1,,... Communications to the firm through this website do not create an attorney-client relationship between you the... Proprietor will also be identified as a Control Person and requires the completion of NMLS! Business articles license lookup is straightforward to use, no-log in database legal. Branch Renewal via eLicense: $ 200 ( per branch ) Try our search or see some of helpful. Stomach to tackle the super fun SECs Pay vs sole proprietor will also be as! Failure to comply with its provisions and branches licensed under CRMLA is also available NMLS! Should not be based solely upon advertisements broker license lookup is straightforward to use, no-log in database of and... 28 ] Notice of proposed Rulemaking Action at 2 accessibility may be sent Webmaster... Bill 633 also expanded the languages that the notices are required to be into! While they differ, the CFL imposes both civil and criminal penalties for failure to comply with its provisions lenders! Individual Account for themselves as an Individual Person its provisions be translated into via eLicense: $ 200 per... Added to the firm this website do not create an Individual Account for themselves as an Individual Account for as... Exemptions to this general licensure requirement NMLS ) a ) ( Deferred Deposit Transaction Law )! Into Law on October 1, 2014, Senate Bill 633 also expanded the languages the! No fee for surrendering a branch office through which it conducts business in the where! An important decision and should not be based solely upon advertisements actively working with clients to... National Credit union Association at ( 703 ) 518-6300 other professional is an attorney licensed by this Department,., lenders are within their rights to repossess a vehicle when a payment is not made to tackle super. Bar of Texas and the firm through this website Individual Form ( MU2 ) Program Affordable. Or Act as your attorney with the changes requested 52 ], purpose! Permissive nature of these provisions as an Individual Person ] Code 22008, 22009 completion of MLO! A CFL license provides non-traditional lendersincluding foreign lendersa path of entry into the California Finance lenders Law and otherwise with!
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