Escrow Accounts

News & Analysis as of

SEC Staff Provides Guidance on Custody Rule Compliance When Private Funds Use SPVs and Escrow Accounts

The staff of the SEC’s Division of Investment Management issued IM Guidance Update No. 2014-7 (the “Guidance Update”) to provide guidance on how Rule 206(4)-2 under the Investment Advisers Act of 1940 (the “Custody Rule”)...more

The SEC Provides Guidance on Custody Rule Compliance for Private Fund SPVs and Escrow Accounts

In June 2014, the staff of the Securities and Exchange Commission’s (SEC’s) Division of Investment Management provided guidance (the Guidance Update) on how private fund managers using special purpose vehicles (SPVs) and...more

SEC Provides Guidance to Private Equity on Seller Escrows

The SEC has issued guidance to registered private equity advisers regarding escrow arrangements resulting from the sale of a portfolio company. The guidance revolves around a circumstance involving the sale of a portfolio...more

New SEC Guidance on Application of Custody Rule to SPVs and Escrow Accounts

The Securities and Exchange Commission (SEC) recently issued a guidance update (Update) on Rule 206(4)-2 of the Investment Advisers Act of 1940 (Custody Rule), which regulates the custody practices of registered investment...more

SEC Issues Guidance on Application of Custody Rules to Special Purpose Vehicles and Escrows

The Division of Investment Management of the Securities and Exchange Commission (the SEC) recently released an IM Guidance Update with respect to the custody rule, Rule 206(4)-2 (the Custody Rule) under the Investment...more

Delaware District Court Affirms Order Approving Gifting In Chapter 11 Case

The U.S. District Court for the District of Delaware has affirmed a bankruptcy court order which approved both a sale of the debtors’ assets and the establishment of an escrow account, which essentially provides a “gift” to...more

House Financial Services Committee Approves Points-And-Fees Bill, To Vote Soon On Other Measures

On May 7, the House Financial Services Committee passed by voice vote H.R. 3211, which would remove additional items from TILA’s definition of “points and fees” for purposes of the CFPB’s “Ability to Repay” and HOEPA rules....more

I/MX Info. Mgmt. Solutions, Inc. v. Multiplan, Inc., C.A. No. 7786-VCP (Del. Ch. Mar. 27, 2014) (Parsons, V.C.)

In this memorandum opinion, the Court of Chancery granted the plaintiff’s motion for partial summary judgment as to the withholding of escrowed funds, reasoning that the defendants did not have a pending claim that could...more

Real Property, Financial Services & Title Insurance Case Law Update: Week Ending January 24, 2014

I. FLORIDA STATE CASES – JOURDAN HAYNES - - Condominiums: given ambiguity in Condominium Act’s escrow requirements (Fla. Stat. § 718.202) and fact that willful violation of same by developer carried criminal penalties,...more

Florida Supreme Court: Separate Escrow Accounts Not Required For Condominium Deposits

The Florida Supreme Court today issued its opinion in North Carillon, LLC v. CRC 603, LLC, No. SC12-75 (January 23, 2014), reversing the Third DCA decision in the case (CRC 603, LLC v. North Carillon, LLC, 77 So.3d 655 (Fla....more

8 Technology Contracting Resolutions for 2014

Along with blustery cold weather (for those of us in New England, at least), the beginning of 2014 brings with it the opportunity to reflect on the past year and to form resolutions to capitalize on the good trends, correct...more

CFPB adjusts HMDA data collection and TILA mortgage escrow thresholds

In notices published in yesterday’s Federal Register, the CFPB adjusted the thresholds of the asset-size exemptions for collecting HMDA data and establishing an escrow account for certain mortgage loans under TILA. ...more

Risks and Benefits to Using Escrow Services in International Trade

In the 2012 edition of its Trade Finance Guide, the International Trade Administration for the first time discussed escrow service as a variation on cash in advance and a payment method available to U.S. exporters. The ITA’s...more

Summary Of HUD’s LEAN 232 Program E-Mail Blast: Office Of Residential Care Facilities (ORCF), October 25, 2013

In an effort to summarize the highlights of the U.S. Department of Housing and Urban Development (HUD) LEAN E-mail Blasts that we receive, and rarely have time to review in a timely fashion, we at Pepper are providing this...more

Agencies Proposed Flood Insurance Rule

On October 11, the FDIC, the OCC, the Federal Reserve Board, and other federal agencies (collectively the agencies) proposed a rule to implement changes to certain flood insurance regulations required by the Biggert-Waters...more

CFPB Snapshot: Fast Approaching Deadlines for Compliance with New Regulations

The Consumer Financial Protection Bureau is gearing up for a busy January, when new regulations directed at the residential mortgage industry are due to be implemented. While lenders scramble to comply with stringent...more

FHA Addresses Application Of Unused Escrow Funds In Refinance Transactions

On September 5, HUD issued Mortgagee Letter 2013-29 regarding the application of unused borrower funds from an escrow account on an existing mortgage in FHA-insured refinance transactions. The letter states that mortgagees...more

A 1.5MM Fraud Mystery: Who is Responsible for Heist that Closed a Business?

Between December 2012 and January 2013, Efficient Services Escrow Group of Irvine, Calif., had $1.5 million drained from its account with First Foundation Bank. Three separate wire transfers were made to accounts in Russia...more

Beware Of Fraudulent On-Line Escrows

From time to time, the Department of Business Oversight posts warnings about fraudulent on-line escrow companies. According to the Department, these fraudsters use stolen identities and credit card numbers to open a Web...more

Illinois Follows Vapor Intrusion Regulation Trend

Most commercial or industrial buyers of contaminated property, and virtually all lenders at contaminated sites, require sellers to either obtain a no-further-remediation letter (NFR) themselves, place money in escrow in an...more

CFPB Exam Procedures for New Mortgage Rules

On June 4, the CFPB published an update to its exam procedures for the new mortgage regulations issued in January 2013 relating to appraisals, escrow accounts, and compensation and qualifications for loan originators....more

CFPB Releases Exam Procedures for New Mortgage Rules

This week, the CFPB published an update to its examination procedures to account for the new mortgage regulations going into effect in January 2014. The update includes Interim TILA Examination Procedures and Interim ECOA...more

Anvil Holding Corp., et al. v. Iron Acquisition Co., et al., C.A. No. 7975-VCP (Del. Ch. May 17, 2013) (Parsons), and Iron...

This case involved the unusual situation of a dual proceeding in the Court of Chancery and the Superior Court. In the Chancery action, the Sellers of Iron Data Solutions, LLC (“Iron Data”) sought to compel disbursement of...more

Ten Tips For Avoiding Municipal Tax Penalties

Each July, nearly everyone who owns real estate, motor vehicles or business equipment in Connecticut owes municipal taxes. Paying later means paying more. Interest runs at 1.5 percent per month (18 percent annually), state...more

CFPB’s Escrows Final Rule

On May 16, the CFPB issued a final rule clarifying and making technical amendments to its Escrows Final Rule in January of this year....more

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