[SmartAdvanced]

• Funders will still require COJs that can be filed outside of NY - so the same notary stamp headache will always bother us ISOs..
• You can still collect on AR and other stuff
• C and C paper funders will always stack and fund high risk deals
• NY deals will get better offers

[Sean Cash]

• Funders will still require COJs that can be filed outside of NY - so the same notary stamp headache will always bother us ISOs..
• You can still collect on AR and other stuff
• C and C paper funders will always stack and fund high risk deals
• NY deals will get better offers

So the bill actually bans COJs from being filed in NY against merchants outside of NY, so the ban applies to 49 states, effectively making them obsolete across the entire industry. 99% of all COJs in the indutry were being filed in NY regardless of where the funder and merchant were located. That's because of how advantageous the NY COJ process was.

If you are talking about using another state to file COJs, like Pennsylvania for example, that's another thing, but no state which allows them is as effective as New York was.

[blashley]

It changes everything, because National banks were easier to file a coj on then a non-national bank in the middle of no where. Non-National banks have to have the coj domesticated in the state they are in versus, just filing a coj in New York state on a national bank and getting a judgment within an hour max.

[SmartAdvanced]

So the bill actually bans COJs from being filed in NY against merchants outside of NY, so the ban applies to 49 states, effectively making them obsolete across the entire industry. 99% of all COJs in the indutry were being filed in NY regardless of where the funder and merchant were located. That's because of how advantageous the NY COJ process was.

If you are talking about using another state to file COJs, like Pennsylvania for example, that's another thing, but no state which allows them is as effective as New York was.

Question: how many deals do you think COJs actually helped collect on?

[blashley]

Look at the New state court docket, and you will tons of coj filings from companies that utilized them. Why sue a merchant and go through a lengthy process to get your money back. When you can just file a judgement get it back same day?

[golf2014]

Gravy train over...

[abfunders]

Will we return to the days that every funder automatically files a UCC upon funding? I'm dealing with a client now that had an old UCC on an old company, and the new funder saw that and said, "Why did they file a UCC?" Answer is that they always used to file UCCs.

[Kevin Henry-Seacoast]

Possibly, but filing behind the 1st position lender raises the flag quicker that the customer violated their agreement and could risk having the lender throw them in default. Regardless, if it winds up in a court room the lender with the UCC1 will have liquidation preferences.

A case a couple of months ago..... The Company went sideways due to advances stacked on top of their line with a bank. They wound up in CH11. In CH11 the court has control of the assets. The advance company thought they could get away with taking their daily payments from the client's bank accounts while in CH11. They quickly would up facing the judge on the case and had to return the funds taken out of the account. Needless to say.....the Court was non to pleased with the advance company.

[WestCoastFunding]

• Funders will still require COJs that can be filed outside of NY - so the same notary stamp headache will always bother us ISOs..
• You can still collect on AR and other stuff
• C and C paper funders will always stack and fund high risk deals
• NY deals will get better offers

* Nah, this will effectively wipe out the use of COJs. The NY system allowed for the widespread use and surprising effectiveness because you had Marshall’s willing to execute the process. Can’t imagine any other state will allow the same use.

* without the COJ they will be last in line. If they have A/R they’ve probably already have someone in place before them with a perfected lien on A/R

* Before COJs it was not easy to get a 3rd position. Not anywhere like it is today. Additionally, many of the C paper investors required a COJ as part of their agreement/covenants

* Maybe

[WestCoastFunding]

Will we return to the days that every funder automatically files a UCC upon funding? I'm dealing with a client now that had an old UCC on an old company, and the new funder saw that and said, "Why did they file a UCC?" Answer is that they always used to file UCCs.

Yeah, no doubt we will go back to automatic UCCs

[FUND3R1]

This is going to be interesting...

[J.Celifarco]

* Nah, this will effectively wipe out the use of COJs. The NY system allowed for the widespread use and surprising effectiveness because you had Marshall’s willing to execute the process. Can’t imagine any other state will allow the same use.

* without the COJ they will be last in line. If they have A/R they’ve probably already have someone in place before them with a perfected lien on A/R

* Before COJs it was not easy to get a 3rd position. Not anywhere like it is today. Additionally, many of the C paper investors required a COJ as part of their agreement/covenants

* Maybe

not to mention many of the high risk funders are going to be in danger of losing their lines if whoever they got it from had a COJ as a requirement for them.

[DannyFoxCap]

Cold calls from debt collectors offering their services have already started, it's not even 10 am.

[J.Celifarco]

Cold calls from debt collectors offering their services have already started, it's not even 10 am.

collection agencies are going to be some of the biggest winners in this

[Kevin Henry-Seacoast]

not to mention many of the high risk funders are going to be in danger of losing their lines if whoever they got it from had a COJ as a requirement for them.

Yep! I would bet the judgement has a lot of lenders to the industry doing site audits of advance companies in their portfolio to see if they were using them to mitigate losses....requirement or not.....

[Kevin Henry-Seacoast]

collection agencies are going to be some of the biggest winners in this

For the advance companies that are in 1st position or have filed UCC in front of everyone else, yes. If a collection company forces the issue for advancer number 2-whatever you will have a tough time collecting as the person in the 1st position is certainly going to protect their position if there is not enough to pay off everyone.

[DannyFoxCap]

I wonder how many COJs were filed yesterday

[mcaguru]

Guys nothnig "NADA" changes here at Mantis .... So if you are a broker/iso/vendor/merchant/etc and concerned DONT be because we are here to fastball an offer on all your B-Zzz paper.would be like a new law about gas taxes and exxon putting out a statment that you wont have any concern filling up GAS...we are here and funding and of course will follow all new laws in place!

[Kevin Henry-Seacoast]

I wonder how many COJs were filed yesterday

It would be insane to file a COJ while this is going on without a damn good reason. I am pretty sure that process is being watched like a hawk.
I wonder how many COJ funders are offering riskier customers discounts to leave.....

[mcaguru]

collection agencies are going to be some of the biggest winners in this

I think the savvy funders are almost doing it all in-house but i can be wrong.

[SmartAdvanced]

All this is such non-sense.. COJs are only 1% of this industry!

[WestCoastFunding]

All this is such non-sense.. COJs are only 1% of this industry!

The threat of a COJ is a valuable collection tool. If B-D funders didn’t see a value in a COJ they wouldn’t have made them mandatory. Also, many of the funders investors require COJs. Without them they’ll pull their money.

[Sachip24]

what happens now with COJ's that have already been filed prior? are those valid or pile of toilet paper now

[Michael I]

The threat of a COJ is a valuable collection tool. If B-D funders didn’t see a value in a COJ they wouldn’t have made them mandatory. Also, many of the funders investors require COJs. Without them they’ll pull their money.

that is what i have been saying 100% this will be the case in till someone comes up with a new creative ways .
Who remembers power of attorney before the coj thing started

[SmartAdvanced]

The threat of a COJ is a valuable collection tool. If B-D funders didn’t see a value in a COJ they wouldn’t have made them mandatory. Also, many of the funders investors require COJs. Without them they’ll pull their money.

COJs are effective for the hype of what they can do, not for the actual money they bring back