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About the Teleseminar
To finance the operations and expansion of a business there are generally two types of loans – loans based on a company’s cash flow and loans based on its tangible or intangible assets. With credit still tight for many companies, asset-based finance is often the only type of loan available. Credit is based on the company’s inventory, receivables, equipment or chattel paper on a term or revolving basis. Each type of collateral and loan structure has its unique drafting nuances. This program will provide you with a practical guide to structuring asset-based loans based on inventory, receivables, equipment and chattel paper loans; understanding term and revolving loans structures; and enforcement issues and special considerations in bankruptcy.
Day 1 – July 8, 2014:
- Asset v. cash flow borrowing – and how it impacts reps, warranties and covenants in loan documents
- Overlay of UCC Article 9 law and practice on asset-based finance
- Types of loans – revolving loans based on inventory and receivables, terms loans based on equipment, and chattel paper financing
- Structures – bilateral v. syndicated loans, letter of credit facilities, second liens, inter-creditor agreements
- Compensation to lender – review of range of fees
About the Speakers
Edwin E. Smith is a partner in the Boston office of Bingham McCutchen, LLP, where he has a national commercial law practice. As a Uniform Law Commissioner for the Commonwealth of Massachusetts, he served as a member of the drafting committee for the revisions of Article 9 of the Uniform Commercial Code. He formerly served as chair of the UCC Committee of the ABA Business Law Section and as the ABA Advisor/Liaison to the Permanent Editorial Board of the UCC. He is a member of the American Law Institute and the National Bankruptcy Conference, and is the past president of the American College of Commercial Finance Lawyers. He received his B.A. from Yale University and his J.D. from Harvard Law School.
Steven O. Weise is a partner in the Los Angeles office Proskauer Rose, LLP, where his practice encompasses all areas of commercial law. He has extensive experience in financings, particularly those secured by personal property. He also handles matters involving real property anti-deficiency laws, workouts, guarantees, sales of goods, letters of credit, commercial paper and checks, and investment securities. Mr. Weise formerly served as chair of the ABA Business Law Section. He has also served as a member of the Permanent Editorial Board of the UCC and as an Advisor to the UCC Code Article 9 Drafting Committee. Mr. Weise received his B.A. from Yale University and his J.D. from the University of California, Berkeley, Boalt Hall School of Law.
Mandatory MCLE Credit Hours
This seminar qualifies for 1.0 MCLE Credit Hour