When Titles Transfer in a Present Sale of Future Rights to Payment – From Perspective of New York law

Abstract

This paper explores when titles to the rights to payment transfer from a seller to a buyer in a true sale of future incomes. The paper finds that under New York Law, rights do not transfer from the seller to the buyer at the formation of the sale contract; nor do rights skip seller and jump to the buyer when those rights are created. The finding implies that A present sale of future incomes may not be an effective means to create a bankruptcy remoteness effect.