Ban on assignment meaning

This Checklist, although not exhaustive, sets out the key steps and issues to consider when acting for a landlord in relation to a tenant’s application for a licence to underlet the demised premises. Does the lease permit underletting? First, review the relevant provisions in the lease to confirm whether the tenant may underlet the demised premises and, if permitted, the conditions and terms that would apply. Where there is an absolute covenant against underletting (ie a total ban), the landlord is under no duty to consent or to entertain the application, although they might choose to accommodate the tenant’s request. Take instructions on that basis; ensure the landlord understands that consenting to an otherwise prohibited act could breach obligations in other leases requiring enforcement of the covenant, and proceed as advised as necessary. If instead the lease has a qualified covenant (ie no underletting without the landlord’s consent), the landlord must handle the application as the lease stipulates and in line with section 1 of...

The use of invoice discounting and factoring of receivables as business finance has expanded markedly in the UK over the past 25 years. Introduction to receivables purchase transactions Invoice discounting and factoring fall within receivables purchase arrangements under which a supplier of goods and/or services (often called the seller or the supplier) transfers, typically by way of assignment, debts owed to it by the purchaser of those goods and/or services (commonly referred to as the buyer or the account debtor), usually together with all associated rights. These receivables purchases are frequently completed at a discounted purchase price. That said, receivables can also be acquired for an amount equal to their face value, with the supplier paying the purchaser a purchase fee. For a variety of reasons, suppliers may opt to sell receivables (on a no recourse or limited recourse basis) in preference to borrowing...

ARCHIVED: This Practice Note has been archived and is no longer updated. It is provided for background information only. Introduction Despite its title, the Small Business, Enterprise and Employment Act 2015 (SBEEA 2015) has general effect across UK companies, not just small and medium-sized enterprises. While the Act chiefly concerns corporate matters and company administration, certain elements may influence financing transactions and warrant attention from finance practitioners. These include: the abolition of bearer shares powers enabling the override of prohibitions on invoice assignment modifications to the powers of the Export Credits Guarantee Department (ECGD) adjustments to administrators’ and liquidators’ powers with implications for insolvency and restructuring practice streamlining of public procurement processes changes to company administration The SBEEA 2015 received Royal Assent on 26 March 2015 and is being brought into force in stages. For the timetable indicating when specific provisions commence, see Practice Note: The Small Business, Enterprise and Employment Act—company law reforms [Archived]. Bearer...

ARCHIVED This Practice Note is archived and no longer updated. The Construction horizon scanner monitors forthcoming developments of interest to construction lawyers; once an item materialises, it is shifted into the archive for its corresponding year. This page holds developments that took place in 2018. For case law, see: Construction case tracker—2018 [Archived]. Legislation Invoice assignment: Prohibition on contract clauses that bar the assignment of a receivable, stop an assignee assessing its validity or value, or obstruct enforcement. When? 31 December 2018 What happened? The Business Contract Terms (Assignment of Receivables) Regulations, SI 2018/1254 introduced the ban for contracts entered into on or after 31 December 2018. Find out more: Draft regulations were issued in September 2017 (see LNB News 18/09/2017 97) but withdrawn in November 2017 (see News Analysis: Business Contract Terms (Assignment of Receivables) Regulations 2017: Unexpected consequences for lenders and LNB News 24/11/2017 73). Revised drafts were published in July 2018—see LNB...