Leasing & financial services

Horten has a long-term and in-depth knowledge of the leasing business and its legal challenges and possibilities. We advise on all forms of leasing agreements, including financial and operational leasing agreements, leasing to businesses and private leasing, sub-leasing, etc. Our many years of experience within leasing concerns both leasing of chattels (including vehicles) and real estate. We mainly advise Danish and international lessors on the following:

• Choice of leasing model and structure
• Preparation of agreements and negotiations
• Handling of breached leasing agreements
• Repossession of leased assets.

We often work across border, for instance when mapping the legal possibilities and risks of introducing and establishing leasing products in other countries than Denmark or when assisting in connection with the ensuring of leased assets which have unlawfully been moved to another country.

In addition, we often conduct litigation on the interpretation of leasing agreements and breached leasing agreements which gives us a unique overview of current case law and the strategic and procedural considerations that are important in these kind of cases.

Horten is specialised in financing within the motor vehicle industry, including vehicle registration fees.

We offer tailored advice to clients on vehicle registration and fees, including the possibilities and special circumstances and requirements that apply in relation to the arrangement concerning pro rata registration fee for vehicles registered in Denmark.

Over the years, we have been thoroughly engaged in insurance matters relating to the financing of chattels. We have mainly assisted banks and financial institutions and advised on the below in connection with the financing of chattels:

• Endorsements securing the interest of a named mortgagee
• Portfolio insurance
• The right of a mortgagee
• Insurance cover
• Disputes concerning incorrect information from policyholders.

Horten has a unique and market-leading knowledge of the regulation of credit agreements between consumers and businesses.

For many years, our specialists have assisted financial businesses and bank on matters pertaining to credit agreements. We have assisted the creditors involved in a number of decisions and judgments concerning credit agreement the past years, including in a number of fundamental cases. We have thereby contributed actively to the development of the present legal position within this area. Consequently, our team is capable of identifying existing pitfalls and finding operational and commercial solutions concerning financing via credit agreements.

Our advice covers a large number of questions relating to credit agreements, for instance:

• Preparation of credit agreements, including ensuring that the statutory duty of disclosure is observed
• Questions concerning securities, including charge and ownership reservation and the validity thereof
• Sections 41 and 42 of the Consumer Credit Agreement Act
• Special problems in connection with in-court and out-of-court repossession of assets financed via credit agreements, including purchase agreements with ownership reservation

We advise on the regulatory affairs applying to the leasing and financing industries.

This includes:

• Anti-money laundering legislation
• The GDPR and data protection
• Marketing, including the special rules applying to marketing of credit agreements
• Insurance distribution (IDD), including advice on the rules of the Insurance Mediation Act and related executive orders
• The Act on Consumer Loan Businesses.

We mainly advise financial players on financing on consignment terms, including especially consignment financing of brand new vehicles.

Based on our many years of advice to banks and financial businesses, we have obtained special knowledge of guarantees, including when and to which extent these may be applied. Guarantees - irrespective of whether these are provided by private persons or businesses - may give rise to a number of objections and disputes, and we have advised regularly on the handling of a large number of guarantees that have been subject to dispute.

Horten advises on and conducts litigation in connection with all kinds of problems relating to guarantees, including:

• Sections 47 and 48 of the Financial Business Act
• Questions concerning recourse
• Challenges concerning assumption
• Conditional composition
• Questions concerning notification
• Time-barring.

Horten advises all parties to factoring arrangements (factor, assignor and debtor), irrespective of whether the factoring arrangement is national or international, and we have wide experience in the challenges and questions concerning choice of law and jurisdiction that may arise in connection with cross-border factoring.

We have wide experience in relation to all forms of factoring, including structured acquisitions of debt (recourse and non-recourse claims) and structured security.

See Debt Collection

We have wide experience arranging and conducting litigation concerning financing aspects, including focusing on the expected costs, the outcome and the time frame. We make an effort only to recommend litigation if we believed that it will have - or trigger - a value which exceeds our client’s investment when it comes to expenses and time.

We advise banks and leasing and financing businesses on floating company charge and related securities. A floating company charge as an instrument of security involves possibilities as well as latent pitfalls, and we have wide experience advising on financing secured by way of a floating company charge. We also advise banks and businesses in connection with non-performing loans secured by way of a floating company charge, and we conduct litigation on the scope and extent of floating company charges.

Our advice on floating company charges requires a basic understanding of the commercial interests of the chargor and the chargee due to the floating nature of the charge. We therefore always base our advice on our understanding of our client’s business and specific needs as these needs often require a tailored approach as to how the charge is to be handled, whether in the establishment, operation or repayment phase.