CFA'S PUBLIC AFFAIRS
Industry information at your fingertips.
Welcome to the Commercial Finance Association’s Public Affairs page. As the leading trade association of the asset-based lending and factoring industries, CFA maintains a comprehensive Public Affairs program. This program includes a dynamic advocacy agenda, led by the CFA Advocacy Committee, ongoing public relations outreach, and a leadership role on legal issues related to ABL and factoring.
LEGISLATION & REGULATION
The Commercial Finance Association monitors legislation and regulation that could affect asset-based lending and factoring. Where necessary, CFA’s Advocacy Committee develops and oversees the Association’s strategy to address the issues raised in legislative and regulatory proposals. Below is a summary of the latest developments in pending legislation and regulatory initiatives of interest to secured lenders.
OCC Releases Asset Based Lending Handbook to Guide Examiners Assessment of ABL
On March 27, 2014, the Office of the Comptroller of the Currency (OCC) released its Comptrollers Handbook on Asset Based Lending. The booklet provides guidance to examiners and bankers regarding ABL activities and risks, prudent credit risk management and underwriting expectations, credit administration, and credit risk rating. Risk-based expanded examination procedures are provided to guide ABL examinations. Expanded topics include ABL structures, credit analysis, evaluating borrower liquidity, establishing a borrowing base and prudent advance rates, collateral controls and monitoring systems, and credit risk rating considerations. The booklet also includes transaction examples to guide examiners and bankers in the assessment of credit risk.
The 78 page ABL Handbook replaces the Accounts Receivable and Inventory Financing booklet of the Comptroller’s Handbook, issued in March 2000, and replaces ABL guidance in section 214, “Other Commercial Lending,” issued in October 2009 as part of the Office of Thrift Supervision’s (OTS) Examination Handbook.
The OCC declined CFA’s offer to provide input during the drafting process but has requested that feedback on the final version be solicited from CFA members. CFA’s Advocacy Committee is collecting feedback from all CFA members. The Advocacy Committee’s OCC & Regulatory Affairs Subcommittee will synthesize the comments collected and provide feedback to the OCC as requested.
To access the ABL Handbook, click here.
LEGAL & JUDICIAL
The Commercial Finance Association plays a leadership role in advocating the interests of secured lenders in legal and judicial issues. Led by CFA’s Co-General Counsel and Advocacy Committee, the Association maintains an active amicus brief program and represents the industry in the development of bankruptcy rules of procedure and other judicial initiatives.
The Commercial Finance Association actively works to promote asset-based lending and factoring around the world. CFA has established cooperative relationships with trade organizations in Europe, including the Asset Based Finance Association (ABFA) in the United Kingdom and the International Factors Group (IFG) in Brussels to Increase global awareness and acceptance of secured financing.
CFA has also worked extensively to support the development of effective secured transactions laws around the world through its involvement in the United Nations Commission on International Trade Law (UNCITRAL). Since 1986, CFA has served in an advisory role on UNCITRAL initiatives such as the UN Convention on the Assignment of Receivables in International Trade and the Legislative Guide on Secured Transactions.