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Paul Forrester is a respected corporate finance and securities lawyer whose practice is especially focused on structured credit, including collateralized loan obligations, energy (including oil and gas, utilities, shipping, refinery and pipeline) financings and project development, and financing (especially concerning renewable energy, industrial, petrochemical, power and transportation projects and infrastructure).

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On January 30, 2020, five federal financial regulatory agencies published the long awaited notice of proposed rulemaking (the “NPR”) to revise certain aspects of the Volcker Rule (Section 13 of the Bank Holding Company Act) with respect to the treatment of covered funds.  The NPR follows over 2 ½ years of the agencies’ consideration of changes to the Volcker Rule, which was originally prompted by the June 2017 Treasury Report that solicited changes to ease the compliance burden on banks.  The NPR includes several changes
Continue Reading Potential Volcker Rule Changes Announced

Today, the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Office of the Comptroller of the Currency (collectively, the Agencies) issued an Interagency Statement on the use of alternative data in credit underwriting and the consumer protection implications

As expected following yesterday’s action by the US Office of the Comptroller of the Currency,1 at today’s board meeting2 of the Federal Deposit Insurance Corporation (FDIC), the board proposed a rule to clarify Federal interest rate authority to address marketplace uncertainty regarding the enforceability of the interest rate terms of loan agreements following a bank’s assignment of a loan to a non-bank, including confusion resulting from a recent decision from the US Court of Appeals for the Second Circuit (Madden v. Midland Funding, LLC).3 The FDIC’s proposal would codify legal guidance on which the agency has relied for more than 20 years regarding interest rates that may be charged by State-chartered banks and insured branches of foreign banks.

Continue Reading FDIC proposes clarification of federal interest rate authority in response to Madden Case

The United States Office of the Comptroller of the Currency (OCC) has proposed a rule to clarify that when a national bank or savings association sells, assigns or otherwise transfers a loan, interest permissible prior to the transfer continues to be permissible following the transfer.

Continue Reading OCC proposes clarification of “Valid When Made” in response to Madden Case

Transactions in the collateralized loan obligation (“CLO”) market have generally included some form of LIBOR replacement provisions for over a year, stemming from the announcement in July 2017 by Andrew Bailey, the head of the UK Financial Conduct Authority (“FCA”), that the FCA intended to phase out LIBOR in its present form by the end

On April 25th, the Alternative Reference Rates Committee, an advisory committee of the New York Federal Reserve Bank (ARRC), released recommended contractual fallback language for U.S. dollar LIBOR denominated floating rate notes and syndicated loans.

This language is part of ARRC’s mandate to help resolve issues with contracts that reference LIBOR.  The ARRC recommends

Montana may be, like New Mexico and possibly Colorado,[1] permitting utility tariff bonds related to certain electrical generating plant retirements. If enacted as proposed, the law would be called the “Montana Energy Impact Assistance Act.”
Continue Reading Utility tariff bonds for coal and other electrical generating plant retirements in Montana?

Joining other coastal states (including Florida, Louisiana and Texas[1]), North Carolina (NC) is considering permitting utility tariff bonds for storm recovery. In both SB 559, filed in NC’s Senate on April 2, 2019, and in HB 624, filed in NC’s House on April 4, 2019, storm recovery costs (and related storm recovery reserves) would be permitted to be covered by a required “financing order,” and an applicant utility obtaining such a financing order would be permitted to issue related utility tariff bonds and bill customers for a non-bypassable charge to repay those bonds.
Continue Reading Utility tariff bonds for storm recovery in North Carolina—Coming to your state soon?

In what we believe to the first and only transaction of its kind, the Connecticut Green Bank (Green Bank) is monetizing certain solar renewable energy credits (SHRECs) generated under its Solar Home Renewable Energy Program and sold to Connecticut Light and Power (d/b/a Eversource Energy) and United Illuminating (UI) according to a related presale report (and as had been announced in an earlier request for proposal).
Continue Reading Connecticut green bank monetizes solar renewable energy certificates in a rated securitization