As Michael J. Kaufman pointed out, the financing instrument at the heart of the draft model could be issued by an entity instead of the plaintiff. Different advantages and challenges flow from different structures; he identified two. As we wind down our roll out of the core terms of the draft model, we will be taking him up on his recommendation and begin discussing different ways of structuring the financing transaction. We will begin with an example of “incorporating the claim,” an idea we introduced and which Anthony Sebok discussed in an earlier post. Specifically, we will dissect real world examples which feature in our next law review article; examples that, conceptually, straddle both the model contract and the conventional non-secured loan approach.
But first, we’ll finish rolling out the model.