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Forward Flow Agreement for the United States

Forward Flow Agreement Template for United States

A Forward Flow Agreement is a legally binding contract under U.S. law that establishes an ongoing relationship between a debt seller and purchaser for the regular sale of debt portfolios. The agreement governs the terms and conditions for multiple future transfers of accounts receivable, including pricing mechanisms, eligibility criteria, and compliance requirements. It typically operates under federal regulations such as the FDCPA and FCRA, as well as applicable state laws governing debt collection and consumer protection.

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What is a Forward Flow Agreement?

Forward Flow Agreements are essential instruments in the debt buying industry, providing a structured framework for recurring debt portfolio sales. These agreements are particularly valuable when a creditor generates a regular volume of charged-off accounts and seeks a reliable buyer for these assets. The agreement typically specifies account eligibility criteria, purchase price calculations, transfer procedures, and compliance requirements under U.S. federal and state regulations. Forward Flow Agreements help streamline operations and provide predictability for both sellers and buyers in the debt market.

What sections should be included in a Forward Flow Agreement?

1. Parties: Identification of seller and purchaser of the debt portfolios

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement including regulatory definitions

4. Sale and Purchase: Core terms of the forward flow arrangement including purchase commitment and frequency

5. Eligibility Criteria: Requirements for accounts to be included in each portfolio

6. Pricing and Payment Terms: Purchase price calculation and payment mechanisms

7. Representations and Warranties: Standard assurances from both parties regarding compliance and authority

8. Term and Termination: Duration of agreement and circumstances for early termination

9. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

What sections are optional to include in a Forward Flow Agreement?

1. Put-Back Rights: Rights to return non-compliant accounts to the seller

2. Compliance Requirements: Specific regulatory compliance obligations and procedures

3. Service Level Requirements: Performance standards for ongoing obligations between parties

4. Data Protection: Specific provisions relating to data privacy and security

5. Audit Rights: Rights of parties to audit compliance and performance

What schedules should be included in a Forward Flow Agreement?

1. Schedule 1 - Account Data Requirements: Required data fields and format specifications for account transfers

2. Schedule 2 - Pricing Schedule: Detailed pricing methodology and calculations

3. Schedule 3 - Transfer Procedures: Operational procedures for account transfers

4. Schedule 4 - Form of Transfer Notice: Template for notifying account transfers

5. Schedule 5 - Eligibility Criteria Details: Detailed specifications of eligible accounts

6. Schedule 6 - Compliance Requirements: Detailed regulatory compliance procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses































Industries

Fair Debt Collection Practices Act (FDCPA): Federal law that regulates debt collection practices and provides consumer protections against abusive collection practices

Fair Credit Reporting Act (FCRA): Federal law governing the collection, dissemination, and use of consumer credit information

Dodd-Frank Wall Street Reform and Consumer Protection Act: Comprehensive financial reform legislation that established the CFPB and introduced new financial regulations

Uniform Commercial Code (UCC) Article 9: Governs secured transactions and provides framework for the sale of accounts and payment intangibles

State Debt Collection Laws: Various state-specific regulations governing debt collection practices and licensing requirements

State Consumer Protection Laws: State-level laws protecting consumers from unfair or deceptive business practices

Gramm-Leach-Bliley Act (GLBA): Federal law requiring financial institutions to explain their information-sharing practices and protect sensitive data

Health Insurance Portability and Accountability Act (HIPAA): Federal law protecting sensitive patient health information from being disclosed without consent (relevant for medical debt)

Truth in Lending Act (TILA): Federal law requiring disclosure of key terms and costs in lending transactions

Securities Act of 1933: Federal law governing securities transactions and requiring registration of securities offerings (relevant if securitization involved)

Bank Secrecy Act: Federal law requiring financial institutions to assist government agencies in detecting and preventing money laundering

USA PATRIOT Act: Federal law expanding requirements for financial institutions to combat money laundering and terrorism financing

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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