Main Volume Information

“American Factoring Law . . . is a comprehensive, well organized, exhaustively researched and, above all, clear statement and explanation of modern factoring law. Whether you are a neophyte in the world of factoring or a seasoned practitioner, this book is a must-have for your law library, and possibly for your own office bookcase.”

 -Mary H. Rose (Buchalter Nemer PC; Los Angeles), American Bankruptcy Institute Journal, October 2011
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“American Factoring Law is the first comprehensive treatise on factoring law in America. It offers a detailed, practical analysis of legal and business issues faced by factors, their clients, account debtors, guarantors, third-party lenders, and taxation authorities. American Factoring Law is unrivalled in its coverage and analysis of asset-based lending and commercial finance.” 

-UVA Lawyer, Spring 2011
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 “Writing a book about the legal issues affecting the factoring industry is a daunting task. American Factoring Law has lived up to and has conquered this challenge. The book is well written and meticulously addresses the legal and business issues which affect the factoring industry… a valuable resource for professionals who work in and service the factoring industry. I look forward to using the book on a regular basis.”

 -Steven N. Kurtz
Levinson Arshonsky & Kurtz, LLP, Sherman Oaks, California
Co-General Counsel, International Factoring Association 

“Factoring is one of those things that most commercial lawyers know a little about. The problem is that a little knowledge is a dangerous thing. Fortunately, David Tatge, David Flaxman, and Jeremy Tatge lead us from danger with their comprehensive treatise American Factoring Law. From the historical development of American factoring to the use of factoring in tax planning, the authors clearly and concisely answer the questions that need to be asked when factoring is involved.”

 -Robin E. Phelan
Haynes and Boone, LLP, Dallas, Texas 

American Factoring Law delves into the complex topics involved in factoring by American factors, including:

• When a sale constitutes a “true sale” of the accounts to the factor, and when it does not
• The nature and treatment of a factor’s “advances” to its client
• The timing and character of a factor’s charge-back of purchased accounts to the client, and distinctions between charge-backs rooted in “quality” recourse from those rooted in “credit” recourse
• Factoring of accounts without recourse, as compared to the factoring of accounts on a partial nonrecourse, partial recourse, split risk, or a full recourse basis
• Accounting for factoring transactions under GAAP, from both the factor-side and the client-side, with illustrations from actual SEC filings, and coverage of the effects of newly enacted SFAS No. 166, an amendment of SFAS No. 140 (eff. 2010)
• Litigation between factors and their clients, factors and client customers, factors and guarantors of the client, factors and third-party lenders, factors and third party factors, inter se, factors and bankruptcy estates, and factors and tax authorities
• Issues that arise when a factor’s client goes bankrupt, including the impact of the “automatic stay;” whether and when the factored accounts constitute “cash collateral” of the bankrupt client; when and what “adequate protection” must be provided to the factor; and the use of factoring as a form of post-petition, debtor-in-possession (DIP) financing
• Difference between full guarantees, limited guarantees, and validity guarantees taken by factors, and how they do (or should) impact the “true sale” analysis
• Relationships between the factor and its funding sources, including refactoring, participation agreements among factors, and relationships between factors and their lenders who provide rediscounting credit lines
• Purchase order financing and letters of credit provided by factors
• Takeover transactions involving factors, whether by buyout of an existing factor’s position or by a new factor coming in “on top” of an existing factor’s position
• Tax matters relevant to factors, including set-offs by the government, as a unitary creditor, when governmental accounts are factored; when a particular funding transaction is and is not treated as a "true sale" for federal income tax purposes; and how factors deal with federal tax liens and with levies by federal tax authorities, as well as subordination agreements between factors and the IRS

Supplement Information

The 2011 Supplement includes new and updated material of significant interest to factors, their clients, and those who deal with them, including discussion of Amcor, Inc. v. CIT Group/Commercial Services, Inc., pending in U.S. District Court in New York, tried in September 2010, which, once decided, will provide further guidance on the chargeback of disputed accounts as well as on an old-line factor’s assumed credit risk in respect of undisputed accounts purchased with credit-approval; analysis of Nickey Gregory Co. v. AgriCap, LLC, a 2010 decision by the United States Court of Appeals for the Fourth Circuit which re-characterized a factoring transaction as a secured borrowing rather than a “true sale” of accounts; review of recent cases where legal fees have been sought by, and in some cases awarded to, prevailing factors in commercial litigation; and rights of a factor to set-off, without prior judicial approval, when the factor receives a garnishment lien in respect of a judgment owed by its client; how to handle subordinations and U.C.C. filings when a factor sells participation interests in purchased accounts.

Main Volume Information

2009/891 pp. Hardcover/Order #9916

Supplement Information

2011/226 pp. Softcover/ISBN 9781570189166/Order#1916

Main Volume Information

David B. Tatge, David Flaxman, and Jeremy B. Tatge 

Supplement Information

David B. Tatge, David Flaxman, and Jeremy B. Tatge 

Main Volume Information

• Summary Table of Contents
• Detailed Table of Contents
• Preface
• Press Release

Supplement Information

• Summary Table of Contents
• Detailed Table of Contents
• Preface 
• Press Release

Order the 2011 Supplement now.