New York Passes Bill To Increase Transparency In Lending

On July 23, 2020, in an effort to increase transparency in commercial financings so borrowers may make more informed decisions, the New York State legislature passed a bill, S5470B, which currently awaits the Governor’s signature. The bill requires certain commercial financing providers to disclose to recipientsM1 critical information about the amount, pricing, and terms of specific commercial financings, upon making the offers. This information must be disclosed in uniform formatting, to be determined by the New […]

By | June 29th, 2020 ||

European Banking Authority Announces 10-Point Action Plan On Cum-Ex/Cum-Cum

In Short: Since the Cum-Ex Files were released in 2018, the European Banking Authority (“EBA”) has been conducting research, through surveys sent to competent authorities, about the risks posed by dividend trading arbitrage schemes. The subsequent report showed the risks of Cum-Ex/Cum-Cum transactions and the inconsistencies in addressing these risks among Member States.

The Result: To resolve these divergences in the regulation of such transactions, the EBA has issued expectations of credit institutions and national authorities and […]

By | June 19th, 2020 ||

Saving Loans For REMICs

Under the REMIC rules, a mortgage loan ceases to be a good REMIC asset if the borrower replaces the real property collateral with government securities (known as defeasance) less than two years after the REMIC’s startup date. This typically is not problematic in a normal economic environment: most commercial mortgage loans prohibit defeasance for long enough to allow a lender to contribute the loan to a REMIC with more than two years to spare.

But as the […]

By | June 9th, 2020 ||