Description
Understand the world of factoring and avoid common problems within factoring.Factoring has existed for decades as a niche market in a few industries. Today, factoring is widely accepted as a mainstream form of financing. The factoring industry is growing at a rapid pace and the demand for factoring will increase in a struggling economy. Factoring requires a sophisticated understanding of many legal issues to avoid stepping on land mines. It is also an industry that is vulnerable to fraud and misappropriation. This material will introduce you to the world of factoring, increase your understanding and awareness of legal issues and help you identify and avoid common problems within factoring.
Date: 2021-03-31 Start Time: End Time:
Learning Objectives
Basic Legal Concepts of Factoring
• History of Factoring
• True Factoring vs. Loan
• Application of UCC, Article 9
• Deal Flow and Structure of Factoring Transaction
Typical Documentation of a Factoring Transaction
• Anatomy of a Factoring Agreement
• Guarantees
• Validity Guarantees (Bad Boy)
• Indemnifications
• Other Ancillary Documents
Due Diligence War Stories and Red Flags
• Searches – UCC, Judgments, Bankruptcy, Tax Liens (the Importance of National Searches)
• Prior Names, Mergers and Acquisitions, Affiliates and Alter Egos
• Inventory Issues, Bailees and Warehouses
• Subordinations and Intercreditor Agreements
• Perfecting Liens
Notice of Assignment: The Key to Double Liability
• Adequate Notice
• Proof of Notice
• Verification • Signed?
• Estoppel • Waiver of Defenses and Offsets
• Email
The Due Diligence Family Reunion
• IRS 45-Day Rule
• State Tax Liens
• Bankruptcy
• Judgment Liens
• Employment Commissions
Special Situations, Special Rules and Secret Liens
• Agricultural
• Transportation
• Construction
• Medical
• Employee Leasing
• Government Accounts • Assignment of Claims Act
• Payroll Taxes
• Oil and Gas
Dangerous Clients and Fraud
• Pre-Billing
• Double Billing
• False Invoices
• COVID-19
• Getting Law Enforcement Involved
• Objecting to Discharge
Collections and Chasing Account Debtors Across the Country
• Asserting Demand
• Suing • Venue
• Arbitration
• Proper Pleadings
Bankruptcy
• Treatment of Factoring
• Automatic Stay Issues
• Cash Collateral Orders
• DIP Financing
AIPB ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Jason M. Medley-Clark Hill PLC
