[MCNetwork]

The no stacking clause just states what the penalty will be if they stack. The legality comes from what Chambo is talking about that you are taking receivables that were already pledged to another company when the 1st contract was signed

The penalty just applies to the merchant. He can be ruled in default and the 1st position funder can try to collect the full balance owed. But we all know that would never happen because that action would really put the merchant in default. So the 1st funder is really powerless to do anything but let the merchant continue to pay him back and hope he doesn't default from the weight of the stacks.

The real question is can the 1st funder sue the stacking company for tortious interference if there is a default? That's the gray area. The stacker can say that they have nothing to do with the merchant's contract with the 1st funder and there isn't a non-compete agreement in place between the two organizations so there's really no basis for a lawsuit.