Also known as:finances · financials · financing · financed · financier · corporate finance · secured financing
Written by attorneys · grounded in primary & secondary sources — see below
The management of money, credit, banking, and investments. It also encompasses the raising or provision of funds for business enterprises or specific transactions.
Sources & Authorities
How it applies
Common Examples
6
Filing to Perfect Security Interest
Frontier Capital extended a loan to Flagship Logistics secured by the company's equipment fleet. To ensure its interest took priority over later creditors, Frontier Capital filed a financing statement with the appropriate state office covering the collateral. The filing perfected the security interest under the governing rules.
Promoter Disclosure in Financing
Fernando Farrell organized a new corporation and sold his own land to it at a markup without telling all contemplated initial investors. When the undisclosed profit came to light, the corporation recovered the secret gain because full disclosure to every person in the original financing plan had not occurred.
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Uniform Acts
Model Codes
Restatements
Dictionaries
Francesca Fiore contracted to buy property from Falcon Dynamics with the duty to perform conditioned on obtaining a $30,000 mortgage from a named bank. When the bank declined but the seller offered its own financing on identical terms, Fiore refused. The condition was not satisfied because the contract specified the particular lender.
Florence Dolan, Petitioner v. City of Tigard, Respondent512 U.S. 374, 114 S.Ct. 2309, 129 L.Ed.2d 304
Jurisdiction Over Finance Dispute
Francisco Frost, a nonresident, held stock in a Delaware corporation. A plaintiff sought to sequester the shares to resolve a finance-related claim. The court examined whether the stock's statutory situs alone supplied a constitutional basis for exercising jurisdiction over the out-of-state owner.
Shaffer v. Heitner433 U.S. 186 (1977)
Oversight of Finance Regulator
Felix Franco challenged the structure of an accounting oversight board created to monitor public-company audits and financial reporting. The separation-of-powers claim turned on whether the appointment and removal provisions for board members improperly insulated the body from executive control over finance regulation.
Free Enterprise Fund v. Public Company Accounting Oversight Board561 U.S. 477, 489, 130 S. Ct. 3138, 3150, 177 L. Ed. 2d 706 (2010)
Financing and Spousal Notice
Felicity French sought an abortion after her husband threatened to use control over family finances to cut off support. State law required spousal notification, but an exception applied when the husband would likely inflict financial or other harm. The court evaluated whether the statutory exception adequately protected the woman's ability to obtain the procedure.
Planned Parenthood of Southeastern Pennsylvania v. Casey505 U.S. 833, 112 S. Ct. 2791, 120 L. Ed. 2d 674 (1992)
Common questions
Frequently Asked
3
What must a secured party do to perfect a security interest in most types of collateral?+
A financing statement must be filed in the proper office unless an exception applies, such as when the interest is perfected by possession or control instead.
What duty do corporate promoters owe to contemplated investors when arranging original financing?+
Promoters owe a fiduciary duty that requires full disclosure of any profit on property sold to the corporation and ratification by all persons contemplated as part of the original financing scheme.
When does a contract condition requiring third-party financing fail even if alternative financing is offered?+
The condition fails if the contract specifies a particular lender and that lender refuses, because the language is interpreted to require financing only from the named source unless circumstances show a contrary intention.
576 U.S. 644 (2015)Legislation and Regulation
…adoption rights; the rights and benefits of survivors; birth and death certificates; professional ethics rules; campaign finance restrictions; workers’ compensation benefits; health insurance; and child custody, support, and visitation rules. See Brief for United States as Amicus Curiae 6–9; Brief for American Bar…