The Critical Need to Give Proper Notice of Assignment
By: Scott D. Chait - Associate Peretore & Peretore, P.C.
In case you missed it, here is a very informative article by Scott Chait of Peretore & Peretore, our LEAN firm in Northern NJ. Thank you for your contribution, Scott!
A recent decision out of the Maryland federal courts is a good reminder of how critical it is to properly notify account debtors of an assignment of secured loans (and leases) so as to make the account debtor legally obligated to pay you, and to assure that they pay the assignor at their peril.
The case, Forest Capital LLC v. BlackRock, Inc., 2015 U.S. Dist. LEXIS 23773 (D. Md. Feb. 26, 2015), involved a lawsuit filed by Forest Capital LLC against BlackRock, Inc. for conversion and violations of the Uniform Commercial Code (UCC). The facts of the case are quite different from a standard equipment lease/loan because it involved a factoring relationship. The lessons to be learned, however, are nonetheless applicable to what is a routine occurrence in our industry – the assignment of loans and leases.
For the entire article, click here.
Scott D. Chait is an associate with Peretore & Peretore, P.C. which focuses its practice on representing equipment leasing and finance companies as well as other secured creditors. He can be reached at firstname.lastname@example.org or (973) 729-8991.