CREDIT APPLICATIONS – FROM THE BASICS TO HOT

TOPICSSCOTT E. BLAKELEY, ESQ.

BLAKELEY & BLAKELEY LLP1000 Quail Street, Suite 200Newport Beach, CA 92660

VOICE: 949/260-0612FAX: 949/260-0613

Los Angeles Office (Please reply to Newport office) 515 S. Flower Street, 36th FloorLos Angeles, California 90071

seb@bandblaw.comINTERNET: www.bandblaw.com

The Credit Application As Part Of A Credit Policy

• Reasons For A Credit Policy

• Credit Department Objectives

• Factors To Consider

• Essential Components Of The Credit Policy

• Types Of Credit Policies

• Developing Your Policy

A Contract With Your Customer

• Types of Contracts • Elements of a Contract • The Legal Forms of Businesses • Agents and Principals

– Types of Agency Statute of Frauds

• Statute of Frauds • Signature, Notice and Changing Terms • Battle of the Forms (UCC 2-207)

Why A Credit Application? • Pros• Cons • Credit Application Checklist• Form of Business • Credit Extension • Applicant’s Certification • Applicant’s Authorization • Terms and Conditions • Signature of Applicant and Creditor

The Electronic Signature In Global And National Commerce Act

• The Writing Requirement: The E-Credit Application– The Statute of Frauds– Posting forms on web pages for retrieval by

customers

• The Signature Requirement: Electronic, or digital, signatures

The Equal Credit Opportunity Act and The Credit Application

• The credit application should provide for statement of the vendor’s compliance with ECOA

• Language for Credit Application

The Fair Credit Reporting Act and The Credit Application

• FRCA Authorization Contained in Credit Application – A separate form, or addendum to accompany

the credit application– A credit application that provides general

authority for the credit professional to pull a consumer credit report on a corporation’s officers may be insufficient

Privacy Rights and the Credit Application

• California Privacy Law: Model Law – Purpose – Key Terms – Notice Requirement – Complying – Violation of SB1386

Disposing Of The Credit Application

• Holding Period – ECOA– Escheatment – Litigation– Antitrust– Privacy

• Destroying the Credit Application and Information– FACT Act

The International Credit Application

• Terms and Conditions

Confidentiality Agreement

• Definition

• Structure

• Disclosure/Non Disclosure

• Limits on Information Deemed Confidential

• Term

• Remedies in the Event of Breach

• Termination

Personal Guaranty and the Credit Application

• Key Provisions

• Spousal Guarantees and ECOA

• Personal Guaranty and FCRA

• Privacy Rights and Personal Guaranty