Act 12 of 2012

The Factoring Regulation Act, 2011

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.

Ministry of Finance
Department of Financial Services
Enacted 2012-01-22
36 sections

Section	Title
1	Short title, extent and commencement.	Read
2	Definitions.	Read
3	Registration of factors.	Read
4	Provisions of non-banking financial companies apply to factor.	Read
5	Requirement for registration as a factor not to apply to bank or Statutory corporation or Government company.	Read
6	Powers of Reserve Bank to give directions and to collect information from factors.	Read
7	Assignment of receivables.	Read
8	Notice to debtor and discharge of obligation of such debtor.	Read
9	Discharge of liability of debtor on payment to assignee.	Read
10	Payment made by debtor to assignor to be held in trust for benefit of assignee in certain cases.	Read
11	Rights and obligations of parties to contract for assignment of receivables.	Read
12	Liability of debtor.	Read
13	Assignor to be trustee of assignee.	Read
14	Liability of debtor in case of an assignor being mircro or small enterprises.	Read
15	Principle of debtor protection.	Read
16	Defences and right of set off of debtor.	Read
17	Modification of original contract.	Read
18	Breach of contract.	Read
19	Registration of certain assignments of receivables transactions.	Read
20	Public inspection.	Read
21	Penalties.	Read
22	Penalties for non-compliance of direction of Reserve Bank.	Read
23	Offences.	Read
24	Cognizance of offences.	Read
25	Offences by factors.	Read
26	Provisions of this Act to override other laws.	Read
27	Application of other laws not barred.	Read
28	Limitation.	Read
29	Confidentiality of information.	Read
30	Power to exempt.	Read
31	Provisions of this Act not to apply or affect in certain cases.	Read
31A	Power to make regulations.	Read
32	Power of Central Government to make rules.	Read
33	Laying of rules.	Read
34	Power to remove difficulties.	Read
35	Amendments to certain enactments.	Read