6 Things Every Accounts Receivable Buyer Should Know
Law360, New York (June 16, 2017, 1:24 PM EDT) -- Over the past several years, nonrecourse receivables financing has been embraced by many major financial institutions and nonbank investors in the U.S. market. With its (1) favorable regulatory treatment for regulated institutions, (2) perceived positive risk/reward profile, and (3) adaptability to recent technological advancements, such as distributed ledger technology (i.e., blockchain), nonrecourse receivables financing likely will grow increasingly popular in the U.S. market.
Here we outline some of the legal elements under U.S. law that any prospective purchaser should be aware of before engaging in any purchase of accounts receivable.
Uniform Commercial Code Financing Statements are Not "Precautionary"
When purchasing accounts...
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