account debtor

See: debtor
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an account debtor may assert equitable set-off against an assignee of the claim on which he is liable), but may require a close connection between the obligations being set off.
SFD has recently signed a contract with National Bank of Egypt (NBE) estimated at EGP300 million by finance from World Bank in order to finance the current account debtor.
326) In CIMC, an account debtor (327) paid funds to a collateral agent for senior secured parties.
The examples of potential priority disputes discussed in this paper emphasise the importance of perfecting security interests and the impact that giving notice to the account debtors can have in preventing the value of the account from being diluted through set off and other claims arising between the transferor and the account debtor after the transfer.
The English priority rule is that, as between two charges registered within twenty-one days of their respective dates of creation, priority goes to the creditor who is first to notify the account debtor of its charge, regardless of the order in which the charges were created or registered.
The code provides that unless an account debtor has made an enforceable agreement not to assert defenses or claims, the rights of an assignee are subject to all the terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract, and any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives notification of the assignment authenticated by the assignor or the assignee.
Even if the account debtor rites a bankruptcy petition, the beneficiary of a letter of credit (the creditor) can took directly to the issuer of the letter of credit (the bank) for immediate payment.
221) Such payments extinguish their obligations, thanks to section 9-318(3), which provides: "The account debtor is authorized to pay the assignor until the account debtor receives notification that the amount due or to become due has been assigned and that payment is to be made to the assignee.
15 of collections the bank had received on factored accounts, regardless of when the account was generated or whether the account had been paid directly by an account debtor or by the debtor from its general deposit account.
A secured lender has the duty to amend its financing statement if its account debtor changes its name or else it will lose its perfected security interest in after-acquired collateral beginning four months after the debtor's name change.
Because the invoice purchased by the factor is presumed to be owed by the account debtor rather than the manufacturer, factors have enabled many small manufacturers to take on large orders from companies, such as Wal-Mart, Target, Sears and Montgomery Ward, because the factors pay them immediately and they do not have to wait the average 45 to 75 days (depending on terms) needed for the invoice to be processed for payment.
Not every account debtor is an appropriate candidate for an involuntary bankruptcy petition.