Resolutions, Payout Priority, California & New York
- From Kegler Brown Hill & Ritter – “Ohio Supreme Court Enforces “Pay-if-Paid” Clause”
The Ohio Supreme Court in Transtar Electric, Inc. v. A.E.M. Electric Services Corp., Slip Opinion No. 2014-Ohio- 3095 announced a bright line rule that “[t]he use of the term ‘condition precedent’ in the payment provision of a contract between a general contractor and a subcontractor” is essentially magic language that on its own “clearly and unequivocally shows the intent of those parties to transfer the risk of the project owner’s nonpayment from the general contractor to the subcontractor.”
- In UCC News: New York is the Latest State to Select Individual Debtor Name Alternative A (effective December 17, 2014)
According to the Uniform Law Commission, 49 states and the District of Columbia have now enacted the 2010 Amendments to the Uniform Commercial Code Article 9. The majority of states have selected the individual debtor name Alternative A, while only seven states (Alaska, Colorado, Connecticut, Delaware, New Hampshire, Oregon, and Wyoming) chose Alternative B. All took effect on July 1, 2013.
- In Construction Credit News: California – SB1050 – Notary Acknowledgment Requirement
California statute, beginning January 1, 2015, will require that any certificate of acknowledgment, proof of execution, or ajurat attached to a sworn statement, shall include a legible notice within an enclosed box at the top, stating: “A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.”
- In Collection News: Secured Creditors Make Bank in Bankruptcy Payout Priority
As a credit professional, you’ve likely heard this once or twice: “It’s better to be a secured creditor than an unsecured creditor.” After all, credit is how the majority of us do business in today’s economy and, as credit professionals, we want to insure we are paid for the goods & services we provide. I often hear secured-credit-skeptics say “If my customer files bankruptcy, I won’t see a dime, why waste my money on a UCC or lien” or “Once the courts get paid, there won’t be anything left for me” and, my favorite, “My customer and I have a great relationship, they’ll never fail & I will always get paid.”
- In Risk Mitigation News: A Look Back at Our 2014 Resolutions
As we wrap up 2014 in a calculated risk bow, let’s take a moment to reflect… At the beginning of 2014 NCS provided a list of tips to assist you in reducing your DSO, improving cash flow and working capital. Which tips became resolutions and which ones did you complete?
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