The Banking & Finance Law Report blog is devoted to highlighting news and trends in the banking and financial industry. Blog authors include attorneys primarily from Porter Wright’s Banking and Finance and Bankruptcy, Workouts and Reorganization practice groups. These nationally recognized teams provide analysis of issues related to regulatory compliance, business strategy, workouts and other matters affecting the way financial institutions operate within the banking industry and across business environments.
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Recent Blog Posts
- The CARES Act: Changes to the U.S. Bankruptcy Code By Jack Meadows On March 27, 2020, President Donald Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law. Among other things, the CARES Act made some important changes to the U.S. Bankruptcy Code. Specifically, the CARES Act modified subchapter V of the bankruptcy code to make it more widely available to small businesses. The Small Business Reorganization Act (SBRA), which became effective on Feb. 19, 2020, created subchapter V. It was enacted to eliminate hindrances that might deter... More
- Financial relief for small businesses under the CARES Act & eligibility FAQs By Jack Meadows and Cassandra Rice The third phase of COVID-19 legislation was signed into law on Friday, March 27, 2020, and has been named the Coronavirus Aid, Relief and Economic Security Act (CARES Act). For small businesses, this legislation means that $349 billion in stimulus dollars is heading out to eligible small businesses, sole proprietors, ESOPs, non-profits, veterans organizations, and other tribal business concerns, to provide assistance maintaining payroll and employee benefits, along with overhead costs. My colleague Cassandra Rice... More
- Financial institutions encouraged to work with borrowers affected by COVID-19 By Grant Stephenson and Jack Meadows Several governmental agencies have issued a statement encouraging financial institutions to work with borrowers affected by the COVID-19 pandemic. The Board of Governors of the Federal Reserve System, Conference of State Bank Supervisors, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency issued a press release on March 22, 2020. The agencies said they will not criticize financial institutions who work with such borrowers and... More
- Financial services sector classified as critical infrastructure By Grant Stephenson and Jack Meadows On March 22, 2020, Steve Mnuchin, Secretary of the Treasury, released a memorandum providing that the financial services sector is identified as Critical Infrastructure Sector by the Department of Homeland Security. This means that despite the restrictions put in place to slow the spread of COVID-19, essential workers in the financial services sector must maintain their operations and work schedules. According to the memorandum, essential workers in the financial services sector include workers who are needed... More
- UPDATE: Foreseeable pitfalls of the SAFE Banking Act By Frank Tice and Jack Meadows The SAFE Banking Act has hit a snag in Congress thanks to opposition from the chair of the Senate Banking Committee. The October 2019 post, “Temper Your Expectations on Cannabis Banking Reform: foreseeable pitfalls of the SAFE Banking Act,” explained how the SAFE Act intended to alleviate the bank industry’s cannabis problem, and where it may fall short. We are proud to share that our first post on the topic recently received national recognition as “Best... More
- Commercial Loans: Equity Cure Provisions By Andy Bojko and Jack Meadows Background In loan agreements, lenders customarily require the borrower to make various financial covenants whereby the borrower promises to achieve certain financial metrics, often requiring the borrower to stay above or below certain thresholds based on its operations. Since financial covenants are based on past financial performance, breaches of financial covenants typically cannot be cured in the absence of some sort of cure provision. This is why the concept of an equity cure provision is an... More
- Temper Your Expectations on Cannabis Banking Reform: foreseeable pitfalls of the SAFE Banking Act By Frank Tice and Jack Meadows On September 25, 2019, the Secure and Fair Enforcement (SAFE) Banking Act of 2019 passed the U.S. House of Representatives by an impressive margin of 321 to 103. The U.S. Senate—once seen as a gauntlet of insurmountable obstacles to cannabis banking reform—has also seen some meaningful progress. Senator Mike Crapo (R., Idaho), the influential chair of the Senate Banking Committee overseeing the SAFE Act in the Senate, previously expressed no interest in allowing the SAFE Act... More