CREDIT APPLICATIONS – FROM THE BASICS TO HOT TOPICS SCOTT E. BLAKELEY, ESQ. BLAKELEY & BLAKELEY LLP 1000 Quail Street, Suite 200 Newport Beach, CA 92660 VOICE: 949/260-0612 FAX: 949/260-0613 Los Angeles Office (Please reply to Newport office) 515 S. Flower Street, 36th Floor Los Angeles, California 90071 [email_address] INTERNET: 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

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)

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

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 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 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

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

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

Holding Period

ECOA

Escheatment

Litigation

Antitrust

Privacy

Destroying the Credit Application and Information

FACT Act

The International Credit Application Terms and Conditions

Terms and Conditions

Confidentiality Agreement Definition Structure Disclosure/Non Disclosure Limits on Information Deemed Confidential Term Remedies in the Event of Breach Termination

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

Key Provisions

Spousal Guarantees and ECOA

Personal Guaranty and FCRA

Privacy Rights and Personal Guaranty