Proposed rules would reduce funding recipients' burdens by reducing LOC valuation requirements and expanding the number of eligible banks - On June 7, 2024, the Federal Communications Commission ("FCC") issued a Notice of...more
...As covered in previous articles in our biweekly series, the U.S. government maintains prohibitions on participating in the Arab League boycott of Israel. Especially for companies that frequently deal with the Middle East,...more
This CLE course will examine some of the more common pitfalls in loan restructurings that are frequently unidentified or ignored until they appear at or after closing. The panel discussion will include agency resignations,...more
On March 27, 2024 the Vermont Captive Insurance Association (VCIA) held its biannual “Roadshow” educational event designed for prospective captive insurance companies. The Roadshow, which has been hosted in over 20 cities,...more
Beginning July 1, 2024, nearly all recruiters and temporary help agencies (THAs) working with businesses or candidates in Ontario will be required to have a licence. All applications must be submitted to the Director of...more
Le 25 avril 2024, la Cour suprême du Canada (la « CSC ») a rejeté une demande d’autorisation d’en appeler d’une décision rendue récemment par la Cour d’appel de l’Alberta (la « CAA ») dans l’affaire Pacific Atlantic Pipeline...more
On April 25, 2024, the Supreme Court of Canada (SCC) denied leave to appeal the recent ruling of the Alberta Court of Appeal (ABCA) in Pacific Atlantic Pipeline Construction Ltd v. Coastal GasLink Pipeline Ltd. (Decision). In...more
If you are a mortgage lender who followed the recommendations in the first article in this series, then you should have a solid grasp of your mortgage portfolio. You have identified the relevant players and their respective...more
Other than cash, a standby letter of credit (LoC) is generally considered the most liquid form of performance security. While beneficiaries generally believe drawing on an LoC should be a relatively simple process, many do...more
In the last month of the most progressive Seattle City Council term in recent history, the Council passed an ordinance restricting a landlord’s right to use certain security measures for commercial leases in the City....more
On January 9, the State of Oregon enacted a new bill on money transmission licensing, specifically stating that “each license application shall be accompanied by a security device in the amount of $25,000.” ...more
The Court of Appeal found a confirming bank to be in breach of contract by declining to make payment under a confirmation to a letter of credit on the basis that a sanctions prohibition applied....more
The National Telecommunications and Information Administration (NTIA) has issued a waiver loosening its irrevocable standby letter of credit (LOC) requirements for the $42.45 billion Broadband Equity, Access, and Deployment...more
On July 13, 2023, a New York intermediate appellate court held that Iberdrola could continue pursuing all but one of its claims against a bevy of lenders in connection with a construction contract for a power plant in...more
Widely reported allegations of fraud at an offshore company this past summer have drawn attention to the use of letters of credit (LOCs) to secure reinsurance obligations. The company, now in bankruptcy, specialized in...more
On March 10, 2023, the California Department of Financial Protection and Innovation closed Silicon Valley Bank, Santa Clara, California (“SVB”) and subsequently appointed the Federal Deposit Insurance Corporation (“FDIC”) as...more
While none of the current economic data indicates an imminent recession, we need look no further than the financial conditions of 2006 and 2007 to see how quickly the tide of the economy can shift. Warren Buffett once...more
What a week this has been since the closure of Silicon Valley Bank. As noted in our Client Alert of last week, California State regulators shut down Silicon Valley Bank (SVB) on Friday, March 10, 2023, and appointed the...more
In light of the recent turmoil in the banking market, it is a good time for landlords to do some spring cleaning and review any letters of credit being held as lease security. As a general rule, letters of credit have been...more
This past Friday, March 10, 2023, the Federal Deposit Insurance Corp. (FDIC) announced its takeover of the failed Silicon Valley Bank (“SVB”) after a run on the bank late last week caused the largest-scale U.S. bank failure...more
The closure of Silicon Valley Bank (SVB) and Signature Bank, and the subsequent receivership by the Federal Deposit Insurance Corporation (FDIC), has far-reaching effects, including to commercial real estate transactions in...more
The impact of the California Department of Financial Protection and Innovation taking possession of Silicon Valley Bank (SVB) and appointing the Federal Deposit Insurance Corporation as receiver for SVB is receiving thorough...more
While unexpected, the closure by California regulators of, and the appointment of the Federal Deposit Insurance Corporation (“FDIC”) as receiver for, Silicon Valley Bank (“SVB”) is an event that is contemplated by most...more
This alert is meant to supply some valuable information for landlords that currently hold tenant letters of credit from Silicon Valley Bank (“SVB”). SVB was closed this morning by the California Department of Financial...more
Lenders not only earn interest on the amounts lent, which needs to be sufficient not only to cover the lender’s cost of capital but also provide a sufficient return, but they also typically receive, depending on their role,...more