Creditors Must Adapt To Emerging Payment Systems

Law360, New York (January 10, 2014, 12:10 PM EST) -- The ability to transmit and accrue funds through electronic platforms outside of traditional financial institutions is growing in use by businesses as well as consumers. Yet such systems present unique and often overlooked legal issues affecting creditors of users of these platforms, particularly with respect to perfection of security interests and reliance on cash deposits as collateral.

The legal and regulatory landscape is as yet uncertain and existing law does not address certain issues presented by these emerging payment systems. Moreover, some payment systems may afford...
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