Selling Receivables Is Called In Maryland

• Category: Loans and Lending - Accounts Receivables
• State: Multi-State
• Control #: US-00402
• Format: Word; Rich Text

Description

Selling receivables is called in Maryland refers to the transfer of ownership of accounts receivable from a seller to a buyer through a formal agreement. The provided form, the Contract for the Sale of Accounts Receivable, is designed to facilitate this transaction by outlining key components such as the rights, obligations, and representations of both parties involved. Key features of the form include the identification of the accounts being sold, the seller's representation of the validity of those accounts, and any contingencies related to payments. Additionally, the form stipulates whether the sale is with or without recourse, impacting the buyer's ability to reclaim funds from the seller if the accounts become uncollectible. The form also allows for due diligence, giving the buyer a designated period to inspect the accounts before finalizing the purchase. For target audiences such as attorneys, partners, owners, associates, paralegals, and legal assistants, this form is essential because it provides a clear and legally binding structure for selling receivables, ensuring compliance with Maryland law and protecting the interests of both parties. By utilizing this form, legal professionals can streamline the process of selling accounts receivable and mitigate potential disputes.