This is a webcast of the live New York session.Why you should attend
Asset based financing 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, our expert faculty will explore the most common forms of asset-based financing, and the legal rules governing them, with particular emphasis on Article 9 of the Uniform Commercial Code, as most recently amended, and the Bankruptcy Code. In addition, the faculty will share what they have learned in representing secured creditors and borrowers in structuring asset-based loans and in enforcing them inside and outside of bankruptcy. The faculty will also discuss a number of ethical issues that arise in asset-based financings.
What you will learn
- Brief review of the basic rules for attachment, perfection, priority and enforcement of a security interest under Article 9
- Common asset-based financing structures
- Techniques for equipment, inventory and receivables financing
- Priority issues relating to non-UCC liens and intercreditor arrangements
- Strategies for structuring an inventory and receivables borrowing base
- Enforcement and bankruptcy planning strategies
- Trends in debtor in possession asset-based financing
- Cross-border asset based financing issues
Special Feature:
- Earn one full hour of Ethics credit
Who should attend
The program is intended for attorneys and asset-based lenders already experienced in the field or seeking a general refresher or update. The program will review the basics of asset-based lending briefly before concentrating on more advanced issues and strategies.
PLI Group Discounts
Groups of 4-14 from the same organization, all registering at the same time, for a PLI program scheduled for presentation at the same site, are entitled to receive a group discount. For further discount information, please contact membership@pli.edu or call (800) 260-4PLI.
PLI Can Arrange Group Viewing to Your Firm
Contact the Groupcasts Department via email at groupcasts@pli.edu for more details.
Cancellations
All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.
All times are E.S.T.
Morning Session: 9:00 a.m. - 12:45 p.m. (E.S.T.)
9:00 Asset Based Financing Foundations
- The asset-based lending market
- The importance of a security interest
- UCC Article 9 definitions
- Basics of attachment, perfection and priority of a security interest
Edwin E. Smith
9:30 Inventory Financing
- Common inventory financing structures
- Floor plan financing and consignments
- Purchase-money inventory priority
- Structuring an inventory borrowing base
R. Marshall Grodner
10:30 Networking Break
10:45 Receivables Financing
- Common receivables financing structures including factoring
- Deposit account control agreements and lock boxes
- Rights and obligations of account debtors
- Structuring a receivables borrowing base
Scott A. Lessne
11:45 Equipment Financing
- Common equipment financing structures including leasing
- Purchase-money equipment priority
- Fixtures
- Common equipment financing provisions in asset-based financing agreements
Christine Gould Hamm
12:45 Lunch Break
Afternoon Session: 1:45 p.m. - 5:00 p.m. (E.S.T.)
1:45 Priority and Enforcement
- Subordination and intercreditor agreements
- Default
- Repossession
- Collection
- Disposition
- Strict foreclosure
Joanne De Silva, Edwin E. Smith
2:45 Networking Break
3:00 Bankruptcy
- Chapter 7 vs. Chapter 11
- Automatic stay
- Adequate protection
- Financing the debtor - do secured creditors exert too much control over the process?
- Bankruptcy trustee’s avoiding powers - what’s hot and what’s new?
- Issues for secured creditors in Chapter 11 plans - credit bidding; cram-down notes
June L. Basden, Edwin E. Smith, Douglas P. Taber
4:00 Ethics in Asset Based Lending
- Concurrent representations
- Successive representations
- Multi-lender transactions
- Ethics in negotiations
Christine Gould Hamm, Edwin E. Smith
5:00 Adjourn
PLI makes every effort to accredit its Live Webcasts. Please check the CLE Calculator above for CLE information specific to your state.
PLI's Live Webcasts are approved for MCLE credit (
unless otherwise noted in the product description) in the following states/territories: Alabama, Alaska, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho*, Illinois, Indiana
1, Iowa*, Kansas*, Kentucky*, Louisiana, Maine*, Minnesota, Mississippi, Missouri, Montana, Nebraska, North Carolina, North Dakota, New Hampshire*, New Jersey, New Mexico, Nevada, New York
2, Ohio
3, Oklahoma, Oregon*, Pennsylvania
4, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia
5, Virgin Islands, Washington, West Virginia, Wisconsin, and Wyoming*.
*PLI will apply for credit upon request.
Arizona: The State Bar of Arizona does not approve or accredit CLE activities for the Mandatory Continuing Legal Education requirement.
Arkansas and Oklahoma: Audio-only live webcasts are not approved for credit.
1Indiana: Considered a distance education course. There is a 6 credit limit per year.
2New York: Newly admitted attorneys may not take non-transitional course formats such as on-demand audio or video programs or live webcasts for CLE credit. Newly admitted attorneys not practicing law in the United States, however, may earn 12 transitional credits in non-traditional formats.
3Ohio: To confirm that the live webcast has been approved, please refer to the list of Ohio’s Approved Self Study Activities at http://www.sconet.state.oh.us. Online programs are considered self-study. Ohio attorneys have a 6 credit self-study limit per biennial compliance period. The Ohio CLE Board states that attorneys must have a 100% success rate in clicking on timestamps to receive ANY CLE credit for an online program.
4 Pennsylvania: A live webcast may be viewed individually or in a group setting. Credit may be granted to an attorney who views a live webcast individually. There is a 4.0 credit limit per year for this type of viewing. A live webcast viewed in a group setting receives live participatory credit if the program is open to the public and advertised at least 30 days prior to the program. Live webcasts viewed in a group setting that do not advertise at least 30 days prior the program will be considered "in-house", and therefore denied credit.
5Virginia: All distance learning courses are to be done in an educational setting, free from distractions.
Running time and CLE credit hours are not necessarily the same. Please be aware that many states do not permit credit for luncheon and keynote speakers.
Note that some states limit the number of credit hours attorneys may claim for online CLE activities, and state rules vary with regard to whether online CLE activities qualify for participatory or self-study credits. For more information, refer to your state CLE website or call Customer Service at (800) 260-4PLI (4754) or email: info@pli.edu.
If you have already received credit for attending some or the entire program, please be aware that state administrators do not permit you to accrue additional credit for repeat viewing even if an additional credit certificate is subsequently issued.