Asset-Based Lending: Navigating Borrowing Base, Article 9 Collateral Issues, and Key Loan Documentation Provisions

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, January 12, 2017

Recorded event now available

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Program Materials

This CLE webinar will discuss the mechanisms of asset-based financing transactions, including issues associated with the borrowing base, obtaining and perfecting a security interest in the assets as collateral under the UCC, and key terms in asset-based lending (ABL) loan documentation.

Description

In asset-based financing transactions, the lender lends up to a percentage of the value of the borrower’s assets—the borrowing base. Assets used in ABL financing are typically accounts receivables, inventory and equipment.

ABL lending frequently involves extensions of credit to borrowers representing a higher degree of credit risk than certain other types of commercial lending. As a result, ABL loans require more intensive scrutiny and oversight by the lender and as a result have many unique features.

Listen as our authoritative panel of finance attorneys reviews the mechanisms of asset-based financing transactions, discusses key issues associated with different assets in the borrowing base, obtaining and perfecting a security interest in the assets, and key terms in ABL loan documentation.

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Outline

  1. Types of ABL facilities
  2. Borrowing base
    1. Cash
    2. Accounts receivables
    3. Inventory
    4. Equipment
    5. Real estate
  3. Obtaining and perfecting a security interest in assets under UCC Article 9
  4. Loan documentation
    1. Representations and covenants
    2. Reserves and dilution
    3. Conditions precedent
    4. Cash management (deposit control account agreements and lock boxes)
    5. Subordination/intercreditor agreements

Benefits

The panel will review these and other key issues:

  • Key issues with different assets in the borrowing base
  • Obtaining and perfecting a security interest in the assets under UCC Article 9
  • Cash management provisions and deposit account control agreement in ABL loan documentation
  • Subordination and intercreditor agreements in ABL loan documents

Faculty

Jenny E. Cieplak
Jenny E. Cieplak

Counsel
Crowell & Moring

Ms. Cieplak practice primarily involves mergers and acquisitions, complex joint ventures, consortiums and...  |  Read More

Guberman, Harvey
Harvey C. Guberman

Partner
Ballon Stoll Bader & Nadler

Mr. Guberman specializes in asset based lending, factoring, financing and creditors rights. His prior experience...  |  Read More

Hahn, Paul
Paul B. Hahn

Partner
Platzer, Swergold, Levine, Goldberg, Katz & Jaslow

Mr. Hahn represents large multi-national to midsized and small commercial finance, banking and factoring institutions...  |  Read More

Scott A. Lessne
Scott A. Lessne

Senior Counsel
Crowell & Moring

Mr. Lessne's practice involves the representation of financial institutions and corporate clients in...  |  Read More

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