March 2010

Wednesday, March 31, 2010 to Thursday, April 1, 2010

Asset-based financing, by which companies provide all or certain of their assets as security for loans or other extensions of credit, is a key source of credit for small and medium-size companies and for some larger, publicly traded companies as well. In contrast to equity financing where ownership in the company is diluted, asset-based financing allows companies to use their own assets to generate cash flow. In structuring these loans, lenders and their counsel must consider all senior interests in the collateral, as well as the practical difficulties in obtaining payment in enforcement situations. Accordingly, asset-based lending requires not only a sound knowledge of the law, but also practical knowledge of the common drafting and enforcement issues likely to arise. At this program, you will learn about the most common forms of asset-based financing, including accounts receivable and inventory financing and factoring, and the legal rules governing them, with particular emphasis on Article 9 of the Uniform Commercial Code and the Bankruptcy Code. In addition, our expert faculty will share what they've learned in representing secured creditors and borrowers in structuring asset-based loans and in enforcing them inside and outside of bankruptcy. Plus, a review of pertinent ethical and cross border secured lending issues.