CONFERENCE DAY 1
CONFERENCE DAY 2

CONFERENCE DAY 1
7:00 AM: Registration and Continental breakfast.
8:00 AM to 4:30 PM - Includes 1 hour Lunch and two 15 minute Breaks.

History of Asset-Based Lending


Overview of Article 9

• What it covers
• Theory of collateral
• What is covered and what is not
       Intellectual property
       Insurance claims
       Bank accounts
       Tort claims

Exhibits Provided
	Model Administrative Rules UCC Filing Chart

Preliminary Considerations

• Corporate status
• Name of non-registered entity
• Trade name issues
• Lien searches
• Form 8821
• Advantage of title insurance
       Filing against similar name
       Gap insurance
       Mis-indexing
• Validity of termination statement
• Filing on inventory is a filing on accounts

Form Provided
	Amendment to Partnership Agreement

Priority Issues

• First to File Rule
• Exceptions
      Purchase money in inventory
         Purchase money in equipment
         Federal tax liens
• Rights of junior creditors
          Notice
          Extra money
          Marshalling

Forms Provided
	"Collateral Description" PMSI Notice IRS Letter Letter to Senior Secured Party Consent to Junior Lien Intercreditor Agreement

What is Asset-Based Lending?

• What makes this different from other lending?
• Asset-based lending vs. factoring
• Comparison between bank asset-based lending and non-bank asset-based lending
• Risks and mitigation
• Pricing and fees
• Line limits and sub-limits
• Availability and advance rates
   

Due Diligence and Underwriting

• Term sheet / letter of intent - proposal / commitment letter
• Financial statements
• Credit reports
• Initial survey or field exam
• Appraisals
• Credit approval

Exhibit Provided
	Field Exam Template

  
Monitoring of Collateral

• Borrowing base
• Detailed accounts receivable agings
• Inventory reports
• Statistics
• Verifications
• Re-Appraisals
• Recurring field exams
• Covenants
• Financial statement review

Basic Loan and Security Agreement

• Committed vs. discretionary
• Demand
• Notification vs. non-notification vs. lock box
• Eligibility issues
• Core Collateral
            Accounts
            Inventory
            Chattel paper / leases
            Equipment
            Federal, state and local
            Waiver of defenses
            Consignment
            Past dues

CONFERENCE DAY 2
7:00 AM: Continental breakfast.
8:00 AM to 3:00 PM - Includes one 45 minutes Lunch

Inventory Security Agreements

• Use of inventory agings
• Trademark issues
• Consignment issues

 
Equipment Security Agreements

• Term notes
• Verification of title
• Purchased from a dealer or purchased used

Exotic Collateral

• Life insurance
• Trading accounts
• Intellectual property

Guarantees

• Anti-fraud guaranty
• Reg B
• Notarized
• Don't draft changes
• Get home addresses
• Get financial statements (non-dischargeability issue)

Participation Agreements

• Standard deal
• Last in first out
• Last out

Form Provided
	Participation Agreement

Commitment Letters

Administration Pitfalls

• Name change
• Change in form of organization
• Lapse

Replacing an Existing Lender

Landlord's Waivers 

• Recordation
• Reserve for rent

New Products

• Purchase order financing
• Supplier guarantees and letters of credit
• Collection rider

Forms Provided
	Collection Rider Supplier Guaranty

Enforcement of Security Interests