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Credit Applications
Many lessors require or should require their lessees to fill out a credit application. At its most basic, the credit application provides an introduction of the potential lessee to the potential lessor ' both as to its legal organization as well as its financial ability to fulfill its obligations under a lease. Although credit applications assist lessors in making these credit decisions, the lessor should make sure that it avoids the pitfalls of the Equal Credit Opportunity Act ('ECOA') and that the financial information it obtains through the credit application is stored appropriately to avoid liability under various state laws regulating the storage of private financial information. This article discusses the components of a good credit application, the requirements of the ECOA, and the best practices for storing private financial information.
The Credit Application
A credit application can be the initial offer or the initial acceptance that creates the contract between lessor and lessee. A well-drafted credit application should set forth the terms under which the lessor is willing to do business with the lessee. Where a credit application is signed by the lessee, it can also be the demonstration of 'acceptance' of the terms and conditions set forth on the credit application. The requirement that a completed credit application must be furnished prior to entering into the lease provides an incentive to the potential lessee to provide information that it may be reluctant to provide in the future. This incentive gives the lessor the ability to gather information not only to determine the lessee's creditworthiness, but also to gather information that may be useful in the future if collection efforts become difficult.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.