Webinar, "Don’t Let Your Collateral Float Away"

May 31, 2023 12:00 PM to 1:15 PM (Eastern Daylight Time)

Lending on In-Transit Inventory

While 2022 saw extremes of supply chain disruption for the movement of goods around the globe, elements of that disruption continue to plague businesses. And in any event asset-based borrowers are keen to expand their borrowing base to include “goods on the water,” particularly in light of such challenges. Confronted with these demands, asset-based lenders have generally shown a willingness to include in-transit inventory in the borrowing base, so the issue has become not so much “whether” to do so, but “how” to do so given the obvious and not-so-obvious risks to the lender in relying on such inventory.

David Morse and colleagues from Otterbourg will talk about what the lender needs to know in facing these risks and how the documentation might address them—both from a legal and a practical perspective, including eligibility criteria, reserves, the significance of “Incoterms” and the different documents of title (and why the lender cares!), the rights of the unpaid supplier, common pitfalls, and understanding what to do when the borrower’s practices don’t particularly align with the best legal position for the lender.

Speakers

David W. Morse, Partner, Otterbourg P.C. David is presently co-chair of the firm's finance practice group. He represents banks, private debt funds, commercial finance companies and other institutional lenders in structuring and documenting loan transactions, as well as loan workouts and restructurings. He has worked on numerous financing transactions confronting a wide range of legal issues raised by Federal, State and international law. David's professional activities include founder and co-chair of SFNet’s International Lending Conference held in London, and member of the Secured Finance Foundation’s governing board. He has given presentations sponsored by Practicing Law Institute, the American Bar Association, the Loan Syndication and Trading Association, the Secured Finance Network and other organizations. In 2008, he was received SFNet’s 2008 Harry H. Chen Memorial Award of Excellence. He has been selected for Super Lawyers since 2008 and Best Lawyers since 2013.

Michael Rich, Associate, Otterbourg P.C. Michael is an Associate in the Banking and Finance Department and the Real Estate Department. He represents banks, hedge funds, private equity funds, commercial finance companies and other institutional lenders in connection with the structuring and documentation of lease and loan transactions, including asset based, cash flow and structured finance transactions, and portfolio acquisitions and dispositions. Michael also represents buyers and sellers, whether individuals, joint ventures, or funds in connection with purchase and sale transactions throughout the country, some including a single property and others a large portfolio. These transactions have involved multi-family residential properties, office buildings, and shopping centers. Mr. Rich is member of the New York State Bar and a member of the New York Bar Association. He is a recipient of a 2023 SFNet 40 Under 40 Award.

Registration

Member Price: $0

Non-Member Price: $95

Contact Information

Contact: Michele Ocejo

Email: mocejo@sfnet.com