PROTECTING THE ORDINARY COURSE OF BUSINESS DEFENSE
By Howard Cohen
Imagine a scenario in which you have a long standing
relationship with an important customer and you learn that this
customer is running into financial difficulties. In the current
economic cycle, this is probably not a hypothetical, but, rather,
an everyday reality. During the course of the relationship, this
important customer has from time to time fallen behind in paying
invoices and has even reached or exceeded the credit limits your
company has imposed on this customer. As things currently stand,
this customer is about to once again exceed its credit limit and
has requested new credit terms and a higher credit limit. You are
concerned about taking aggressive collection efforts since you have
some understanding that collection efforts or changes in the
relationship might preclude your company from asserting an ordinary
course of business defense to a preference lawsuit, should this
customer file
