December 11, 2012
12:00 – 1:00 p.m.
1.00 MCLE hours
Asset-based loans are the most common form of borrowing by companies and have become increasingly important as other forms of borrowing are limited. With unsecured loans from banks still most out of reach of most companies because of the ongoing squeeze in lending, companies often turn to loans based on their inventory, accounts receivable or capital equipment to fund ongoing operations or expansion. Asset-based loans are form of secured credit under UCC Article 9 and must conform with a thicket of statutory requirements. Also, the practical, negotiated terms of the loans have changed in the last several years in response to very tight credit conditions. This program will provide you with a framework for structuring asset-based loans, a guide to the extensive documentation needed to effectuate a loan, and common traps for borrowers and lenders. Part 1 of 2.
Edwin E. Smith, Bingham McCutchen, LLP, Boston