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

 “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, Intl. 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

The authors of American Factoring Law have stepped up and filled the void that existed for a resource on American factoring law, practice, and procedure. This one-of-a-kind treatise is the first comprehensive work ever written in America on the subject, providing a detailed analysis of the legal and business issues of factors and factoring transactions.

• 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