law: Factoring Regulation Act, 2011 
  2. Definitions.-
  In this Act, unless
  
  the context otherwise requires,
  a.     
  
    assignment
  
  means transfer by agreement, of undivided interest of any assignor in any
  
  receivable due from any debtor in favour of a factor and includes an assignment
  
  where either the assignor or the debtor, are situated or established outside
  
  India.
  Explanation: For the
  
  purposes of this clause, undivided interest of any assignor in any receivable
  
  shall not include creation of rights in receivables as security for loans and
  
  advances or other obligations by a bank or a financial institution;
  a.    
  
  
  b.    
  
    "assignee"
  
  means a factor in whose favour the receivable is transferred;
  c.     
  
    "assignor"
  
  means any person who is the owner of any receivable;
  d.    
  
    "bank"
  
  means,
               
  
   i.        
  
    a
  
  banking company;
  a
  
  corresponding new bank;
             
  
   iii.        
  
    the
  
  State Bank of India;
             
  
   iv.        
  
    a
  
  subsidiary bank;
              
  
   v.        
  
    such
  
  other bank which the Central Government may by notification specify for the
  
  purposes of this Act on the recommendations of the Reserve Bank; or
             
  
   vi.        
  
    a
  
  Multi-State Co-operative Society registered under the Multi-State Co-operative
  
  Societies Act, 2002 (39 of 2002) and licensed to undertake business of banking
  
  by the Reserve Bank under the provisions of the Banking Regulation Act, 1949
  
  (10 of 1949);
  a.     
  
  
  b.     
  
  
  c.     
  
  
  d.     
  
  
  e.     
  
    "banking
  
  company" shall have the meaning assigned to it in clause (c) of section 5
  
  of the Banking Regulation Act, 1949 (10 of 1949);
  f.     
  
    business
  
  enterprise means any enterprise or medium enterprise, micro enterprise or small
  
  enterprise as defined in clauses (e), (g), (h) and (m) of section 2 of the
  
  Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006),
  
  respectively engaged in any business activity;
  g.    
  
    "corresponding
  
  new bank" shall have the meaning assigned to it in clause (da) of section
  
  5 of the Banking Regulation Act, 1949 (10 of 1949);
  h.     
  
    "debtor"
  
  means any person liable to the assignor, whether under a contract or otherwise,
  
  to pay any receivable or discharge any obligation in respect of the receivable
  
  whether existing, accruing, future, conditional or contingent;
  i.      
  
    "factor"
  
  means a non-banking financial company as defined in clause (f) of section 45-I
  
  of the Reserve Bank of India Act, 1934 (2 of 1934) which has been granted a
  
  certificate of registration under sub-section (1) of section 3 or anybody
  
  corporate established under an Act of Parliament or any State Legislature or
  
  any Bank or any company registered under the Companies Act, 1956 (1 of 1956)
  
  engaged in the factoring business;
  j.      
  
    "factoring
  
  business" means the business of acquisition of receivables of assignor by
  
  accepting assignment of such receivables or financing, whether by way of making
  
  loans or advances or otherwise against the security interest over any
  
  receivables but does not include
               
  
   i.        
  
    credit
  
  facilities provided by a bank in its ordinary course of business against
  
  security of receivables;
              
  
   ii.        
  
    any
  
  activity as commission agent or otherwise for sale of agricultural produce or
  
  goods of any kind whatsoever or any activity relating to the production,
  
  storage, supply, distribution, acquisition or control of such produce or goods
  
  or provision of any services.
  Explanation: For the
  
  purposes of this clause(i) the expression "agricultural produce"
  
  shall have the meaning assigned to it under clause (a) of section 2 of the
  
  Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937); and(ii) the
  
  expressions "goods" and "commission agent" shall have the
  
  meanings assigned to them respectively under clause (d) and
  Explanation (ii) of
  
  clause (i) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of
  
  1952);
  a.     
  
  
  b.     
  
  
  c.     
  
  
  d.     
  
  
  e.     
  
  
  f.     
  
  
  g.     
  
  
  h.     
  
  
  i.     
  
  
  j.     
  
  
  k.     
  
    "financial
  
  contract" means any spot, forward, future, option or swap transaction
  
  involving interest rates, commodities, currencies, shares, bonds, debentures or
  
  any other financial instrument, any repurchase of securities and lending
  
  transaction or any other similar transaction or combination of such
  
  transactions entered into in the financial markets;
  l.      
  
    "netting
  
  agreement" means any agreement among the system participants for the
  
  purpose of determination by the system provider of the amount of money or
  
  securities due or payable or deliverable as a result of setting off or
  
  adjusting the payment obligations or delivery obligations among the system
  
  participants, including the claims and obligations arising out of the
  
  termination by the system provider, on the insolvency or dissolution or winding
  
  up of any system participant or such circumstances as the system provider, may
  
  specify in its rules or regulations or bye-laws (by whatever name called), of
  
  the transactions admitted for settlement at a future date so that only a net
  
  claim be demanded or a net obligation be owned;
  m.   
  
    "notification"
  
  means a notification published in the Official Gazette;
  n.     
  
    "prescribed"
  
  means prescribed by rules made under this Act;
  o.    
  
    "property"
  
  means,
               
  
   i.        
  
    the
  
  immovable property;
  the
  
  movable property;
             
  
   iii.        
  
    any
  
  debt or any right to receive payment of money, whether secured or unsecured;
             
  
   iv.        
  
    the
  
  receivables;
              
  
   v.        
  
    the
  
  intangible assets, being know-how, patent, copyright, design, trade mark,
  
  licence, franchise or any other business or commercial right of similar nature;
  a.    
  
  
  b.    
  
  
  c.    
  
  
  d.    
  
  
  e.    
  
  
  f.    
  
  
  g.    
  
  
  h.    
  
  
  i.    
  
  
  j.    
  
  
  k.    
  
  
  l.    
  
  
  m.    
  
  
  n.    
  
  
  o.    
  
  
  p.    
  
    "receivables"
  
  mean all or part of or undivided interest in any right of any person under a
  
  contract including an international contract where either the assignor or the
  
  debtor or the assignee is situated or established in a State outside India; to
  
  payment of a monetary sum whether such right is existing, future, accruing,
  
  conditional or contingent arising from and includes, any arrangement requiring
  
  payment of toll or any other sum, by whatever name called, for the use of any
  
  infrastructure facility or services;
  q.    
  
    "Reserve
  
  Bank", means the Reserve Bank of India constituted under section 3 of the
  
  Reserve Bank of India Act, 1934 (2 of 1934);
  r.      
  
    "State
  
  Bank of India" means the State Bank of India constituted under section 3
  
  of the State Bank of India Act, 1955 (23 of 1955);
  s.     
  
    "Subsidiary
  
  Bank" shall have the meaning assigned to it in clause (k) of section 2 of the
  
  State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);(t) words and
  
  expressions used and not defined in this Act but defined in the Reserve Bank of
  
  India Act, 1934 (2 of 1934), the Banking Regulation Act, 1949 (10 of 1949), the
  
  Companies Act, 1956 (1 of 1956), the Securitisation and Reconstruction of
  
  Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002),
  
  the Credit Information Companies (Regulation) Act, 2005 (30 of 2005), or the
  
  Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), shall
  
  have the meanings respectively assigned to them in those Acts.