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LAWGIST

The Factoring Regulation Act `2012

An Act to provide for and regulate assignment of receivables by making provision for registration there for and rights and obligations of parties to contract for assignment of receivables and for matters connected therewith or incidental thereto.
2012
List of Chapters & Sections

  1. PRELIMINARY

  2. 1
     Short title, extent and commencement
  3. 2
     Definitions

  • REGISTRATION OF FACTORS

  • 3
     Registration of factors
  • 4
     Provisions of non-banking financial companies apply to factor
  • 5
     Requirement for registration as a factor not to apply to bank or Statutory corporation or Government company
  • 6
     Powers of Reserve Bank to give directions and to collect information from factors

  • ASSIGNMENT OF RECEIVABLES

  • 7
     Assignment of receivables
  • 8
     Notice to debtor and discharge of obligation of such debtor
  • 9
     Discharge of liability of debtor on payment to assignee
  • 10
     Payment made by debtor to assignor to be held in trust for benefit of assignee in certain cases

  • RIGHTS AND OBLIGATIONS OF PARTIES TO CONTRACT FOR ASSIGMENT OF RECEIVABLES

  • 11
     Rights and obligations of parties to contract for assignment of receivables
  • 12
     Liability of debtor
  • 13
     Assignor to be trustee of assignee
  • 14
     Liability of debtor in case of an assignor being mircro or small enterprises
  • 15
     Principle of debtor protection
  • 16
     Defences and right of set off of debtor
  • 17
     Modification of original contract
  • 18
     Breach of contract

  • REGISTRATION OF ASSIGNMENTS

  • 19
     Registration of certain assignments of receivables transactions
  • 20
     Public inspection

  • OFFENCES AND PENALTIES

  • 21
     Penalties
  • 22
     Penalties for non-compliance of direction of Reserve Bank
  • 23
     Offences
  • 24
     Cognizance of offences
  • 25
     Offences by factors

  • MISCELLANEOUS

  • 26
     Provisions of this Act to override other laws
  • 27
     Application of other laws not barred
  • 28
     Limitation
  • 29
     Confidentiality of information
  • 30
     Power to exempt
  • 31
     Provisions of this Act not to apply or affect in certain cases
  • 32
     Power of Central Government to make rules
  • 33
     Laying of rules
  • 34
     Power to remove difficulties
  • 35
     Amendments to certain enactments