Louisiana Court Rules That Secured Lender Could Enforce Buyer's Rights Under Purchase Agreement

LexisNexis (October 20, 2016, 9:29 AM EDT) -- When a borrower defaults, the secured lender has a right to foreclose on the collateral by public or private sale.  With respect to receivables owing to the debtor—accounts receivable, executory contract rights, general intangibles, chattel paper, or negotiable instruments—the secured lender can avoid the pitfalls of a foreclosure sale and collect directly from the account debtors. That's the beauty of being able to step into the shoes of the borrower. For example, if the debtor is a retail dealer, proceeds from the inventory might include accounts...
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