Information Security Obligations
February 27, 2007
One of the most pressing issues faced by any business, but especially those in the financial services industry, is the privacy and security of financial and other nonpublic information. This is the first in a series of three articles addressing some of the key issues surrounding corporate responsibility with respect to the privacy of information and security breaches. Whether public or private, small company or large, if you or your client are in possession of the personal information described below, the following series of articles is essential reading.
Financing Payment Obligations for Services: Are 'Hell or High Water' and 'Waiver of Defenses' Clauses Enforceable in Contracts for Future Services?
February 27, 2007
The primordial cornerstone of financing equipment lease receivables has been the ability of funding sources to rely on the enforceability of two related provisions contained in the underlying lease documentation:1) 'Hell or high water' clauses, where the lessee agrees that its payment obligations under the lease are 'absolute and unconditional' and are not subject to any defense, setoff, or counterclaim that the lessee may have against the lessor, its assignee, the manufacturer or seller of the equipment, or against any person for any reason whatsoever — essentially, it agrees to pay 'come hell or high water.'2) 'Waiver of defense' clauses, where the lessee 'agrees not to assert against an assignee' of the lease payments, any defenses, setoffs, or claims it may have against the lessor, as the original payee under the lease.
In the Marketplace
January 31, 2007
Highlights of the latest equipment leasing news from around the country.
What Leasing Counsel Need to Know About Arbitration
January 31, 2007
Two years ago, Good Corp. (located in California) and Bad Corp. (located in Pennsylvania) entered into a leasing contract for some medical equipment. The agreement had an arbitration clause that stated that Good Corp. and Bad Corp. would arbitrate any disputes arising out of the agreement. They did not bother to spend time thinking about the details of the arbitration.
Clarity Ahead for Enforcing Jurisdiction Clauses in the EU?
January 31, 2007
In a recent development that will likely be of interest to lessors and other parties conducting business in Europe, the American Bar Association has urged the U.S. government to sign, ratify, and implement the Hague Convention on Choice of Court Agreements (the 'Choice of Court Convention'). The Choice of Court Convention accomplishes many goals that have long been sought by the United States. Most importantly, it provides a mechanism for the recognition of certain judgments rendered by U.S. courts, namely judgments resolving a dispute arising out of a commercial agreement that was submitted pursuant to an exclusive choice of court agreement. (See American Bar Association, Recommendation adopted by the House of Delegates (Aug. 7-8, 2006), at <i>www.abanet.org/intlaw/policy/investment/hcca0806.pdf.</i>)
IT Leasing on the Rise
December 28, 2006
A recent study commissioned by the Equipment Leasing and Financing Association of America ('ELFA') and produced by The Alta Group examines how U.S. businesses and other organizations acquire critical information technology ('IT') equipment and what factors influence the decision-making processes.
