Client Alerts & Publications Archive

Can a lender use evidence outside the four corners of a security agreement to prove that it has a valid security interest against the bankruptcy trustee?

Congress recently authorized an additional $400 million of nationwide volume cap for the qualified zone academy bond program. 

The Federal Reserve Board announced today that it has acted under the Volcker Rule to give banking entities until July 21, 2016, to conform investments in, and relationships with, covered funds and foreign funds that were in place prior to December 31, 2013, with the requirements of the Volcker Rule. 

Last week, the American Bankruptcy Institute Commission to Study the Reform of Chapter 11 released its Final Report and Recommendations for amendment to the current Bankruptcy Code.

Certain compliance issues related to a bank’s use of social media data in its business are identified in this briefing for consideration and potential action.

The Securities and Exchange Commission approved the Municipal Securities Rulemaking Board’s proposal to implement a “best execution” standard for municipal securities transactions.

On December 11, 2014, the Basel Committee on Banking Supervision published final revisions to the securitization framework for determining regulatory capital requirements on exposures arising from securitization transactions.

On December 11, 2014, the Basel Committee on Banking Supervision and the International Organization of Securities Commissions issued a Consultative Document proposing criteria that may be used by transaction parties and regulators to assist in the development of simple and transparent securitization structures.

The Consumer Financial Protection Bureau has issued its 800+ page proposed rule (with commentary) on prepaid cards.

On December 9, 2014, the Board of Governors of the Federal Reserve System proposed a framework to establish risk-based capital surcharges for the largest, most interconnected U.S. bank holding companies pursuant to Section 165 of the Dodd-Frank Act.

Generally, federal tax laws restrict the use of tax-exempt governmental use bonds by nongovernmental, non-public users, which is referred to as “private business use.”

The Securities and Exchange Commission is seeking comments on two new rule proposals by the Financial Industry Regulatory Authority, Inc. governing equity and debt research analysts and research reports.

The Financial Industry Regulatory Authority, Inc. recently proposed new “pay-to-play” rules that would regulate the activities of FINRA member firms engaging in distribution or solicitation activities with government entities on behalf of investment advisers.

On October 15th, the IRS proposed a change to the regulations which would eliminate the requirement of a creditor to report cancellation of debt income on Form 1099-C after not receiving payment for 36 months.

The Financial Industry Regulatory Authority, Inc. and the Municipal Securities Rulemaking Board recently requested comment on proposals to require disclosure of pricing information on customer trade confirmations for certain fixed income security transactions.

On November 6, 2014, the Securities and Exchange Commission announced that fraud charges had been issued against the city of Allen Park, Michigan, and two former city leaders.

The Consumer Financial Protection Bureau has issued a proposed rule that would bring prepaid products under the Electronic Fund Transfer Act and make the protections currently afforded to credit cardholders under Regulation Z applicable when credit features are obtained in connection with a prepaid account.

In this issue:

• Department of Housing and Urban Development 2013 Disparate Impact Rule is Vacated
• FFIEC Cybersecurity Guidance
• 2014 Federal Interagency Fair Lending Hot Topics Webinar

In this issue:

• Qualified Mortgage Points and Fees Cure
• Posting Privacy Notices Online
• National Survey of Unbanked and Underbanked Households

The Delaware Supreme Court ruled recently that a secured party’s security interest in collateral can be terminated upon the filing of a UCC termination statement even though there was a mistake in the document.

On October 24, 2014, the IRS issued Notice 2014-67, Private Business Use of Tax-Exempt Bond Financed Facilities.

On October 24, 2014, the IRS issued Notice 2014-67, Private Business Use of Tax-Exempt Bond Financed Facilities. The Notice expands the management contract safe harbor guidelines of Revenue Procedure 97-13 to permit certain productivity awards and liberalizes the requirements for certain types of 5-year contracts that will not result in private business use.

On October 31, 2014, the Basel Committee on Banking Supervision issued the final standard for a Net Stable Funding Ratio requirement.

An article based on a recent Chapman Client Alert was posted by the Harvard Law School Forum on Corporate Governance and Financial Regulation.

A Chapman article was published in the October 2014 issue of Insights: The Corporate & Securities Law Advisor.

In September 2014, the U.S. banking agencies adopted final rules implementing a liquidity coverage ratio requirement that will test a bank's ability to withstand "liquidity stress periods." In collaboration with the Structured Finance Industry Group (SFIG), Chapman attorneys authored a guide summarizing elements of the final rule that have the greatest impact on the securitization market. 

The Municipal Securities Rulemaking Board recently announced the approval of an amended continuing education rule that will require annual training and expand the coverage of its Firm Element.

Issuers and obligated persons are reminded of the approaching deadline for self-reporting materially inaccurate representations in offering documents regarding compliance with continuing disclosure undertakings.

At an open meeting this morning, October 21, 2014, in a 4-1 vote, the Federal Deposit Insurance Corporation adopted final rules to implement the credit risk retention requirements of Section 15G of the Securities Exchange Act of 1934, which were added to that statute pursuant to Section 941 of the Dodd-Frank Act.

Chapman and Cutler attorneys have been monitoring decisions and developments with respect to creditors' rights and have compiled the client alerts published to date that provide important insight regarding the implications of these decisions for holders of secured debt and highlight what every creditor should know in order to effect rights under its credit agreement.

The Internal Revenue Service Office of Tax Exempt Bonds has announced a new sequester reduction in amounts paid to issuers of direct pay bonds for which issuers elected to receive a direct payment from the U.S. Treasury pursuant to Section 6431 of the Internal Revenue Code.

The Board of Governors of the Federal Reserve System announced today that it is holding an open meeting at 3:30pm (EST) on Wednesday, October 22, 2014, to vote on adoption of a final risk retention rule under Section 941 of the Dodd-Frank Act.

“Acquisition Financing,” or the funding of capital for the purpose of acquiring a target company, is a growing specialty area among bank lending attorneys.

In this issue:

• FinCEN Proposed Rule on Customer Due Diligence Requirements

• CFPB Issues First Enforcement Action for Mortgage Servicing Rules

• Cordray Speaks about Checking Account Issues

The Federal gift and estate tax exclusion amount shelters gifts and testamentary bequests from gift and estate tax.

It has been reported that approximately two-thirds of companies in the U.S. are affected by fraud, losing an estimated 1.2% of revenue each year to such activity.

In an important bench ruling in the MPM Silicones case, Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York has provided debtors with a potentially coercive tool to use as leverage against their secured creditors.

The Board of Governors of the Financial Industry Regulatory Authority, Inc. recently authorized regulatory notices seeking comment on initiatives to enhance transparency and execution quality in fixed income markets.

This morning, Regulation AB II was published in the Federal Register.

The staff of the Commodity Futures Trading Commission recently issued relief for certain exempt commodity pool operators that permits general solicitation and general advertising in connection with offerings of commodity pools.  

In August 2014, the SEC adopted final rules under Regulation AB that substantially revise the offering process, disclosure and reporting requirements for offerings of ABS. More than four years after the SEC originally published its comprehensive "Regulation AB II" rule proposals, and after two partial re-proposals in 2011 and 2014, the final rules implement several key areas of reform but defer action on other significant aspects of the original proposals.

On September 3, 2014, the US banking agencies adopted final rules implementing a liquidity coverage ratio (LCR) requirement that will test a bank's ability to withstand liquidity stress periods. The specific objective of the LCR rules is to ensure that a bank has enough high quality liquid assets (referred to as HQLA) that can be immediately converted into cash to meet its liquidity needs for a 30-day stress period.

Chapman and Cutler hosted a regulatory update program on September 10, 2014, regarding the recently adopted final rules implementing Regulation AB II and the Liquidity Coverage Ratio.

As prices for distressed loans have risen, holders of secured claims are focusing not only on the recovery of principal but also on repayment of interest, fees and pre-payment-premiums or “make whole” payments.

The Securities and Exchange Commission is seeking comments on the first ever explicit “best execution” rule for municipal securities transactions proposed by the Municipal Securities Rulemaking Board.

On September 3, 2014, the OCC, the Federal Reserve Board and the FDIC (collectively, the "Agencies") adopted final rules implementing revisions to the denominator measure for the supplementary leverage ratio. 

This morning, September 3, 2014, the Federal Reserve Board adopted final regulations implementing the liquidity coverage ratio (LCR) requirement in the United States.

On August 27, 2014, in a 3-2 vote, the SEC approved final rules applicable to nationally recognized statistical rating organizations (NRSROs).

The FDIC has announced an open meeting on September 3, 2014, at 2:00 p.m. Eastern time to vote on final regulations implementing the liquidity coverage ratio (LCR) and changes to the supplementary leverage ratio (SLR).