Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

Filter

Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.

  • North Carolina authorizes remote shareholder meetings

    State Issues

    On April 1, the North Carolina governor issued an executive order permitting corporations to hold shareholder meetings by remote communication. The order will remain in effect for 60 days unless rescinded or superseded with another order.

    State Issues Covid-19 North Carolina Shareholders

  • Louisiana regulator provides guidance on business continuity plans

    State Issues

    On April 1, the Louisiana Office of Financial Institutions issued a bulletin urging financial institutions to review their disaster recovery/business continuity plans and update them as needed to ensure that all interdependent operations are considered. The guidance includes a list of considerations, including, among other things: supplying staff with protective equipment and training; updated contact information for third party services and consideration of third party services that might become impaired in an incident; contingency communication process; remote work possibilities; identification of critical operations, including as examples, core processing systems, ATM processing and replenishment, online banking systems, payment processing, and wire processing; cross-training for continuity; and liquidity and cash considerations.

    State Issues Business Continuity ATM Online Banking Payment Processors Covid-19 Louisiana State Regulators

  • Oklahoma issues FAQs on remote notarization

    State Issues

    The Oklahoma Secretary of State published FAQs on online remote notarization, encouraging businesses to utilize remote notarization capacity in order to bypass in-person meetings and physical delivery of documents. The FAQs also discuss the authorization, bond, and recordkeeping requirements applicable to remote notarization.

    State Issues Covid-19 Oklahoma Fintech

  • Florida governor issues stay at home order

    State Issues

    On April 1, the governor of Florida issued an executive order requiring all senior citizens and individuals with a significant underlying medical condition to stay at home. The order also requires all persons in Florida to remain at home unless necessary to obtain or provide essential services or conduct essential activities. The order refers to the U.S. Department of Homeland Security’s Essential Critical Infrastructure Workforce for inclusion of “essential services.”  This list includes financial services institutions and their workers.

    State Issues Covid-19 Florida

  • Arkansas Securities Department provides relief from regulatory deadlines and guidance on notarization

    State Issues

    On April 1, the Arkansas Securities Department issued guidance providing relief from certain regulatory deadlines to licensed money services businesses and mortgage companies. The department is providing a 60-day extension to file financial statements and a 30-day extension to submit Call Reports and the MCR Standard Financial Condition Reports. Further, the guidance provides that licensed entities are authorized to use real-time audio and visual means to witness the signing of a legal document so long as the identity and physical presence of any and all witnesses and signers in Arkansas are validated at the time of execution of the document by real-time audio or visual means.

    State Issues Covid-19 Arkansas Securities Notary Money Service / Money Transmitters Mortgages Licensing

  • NCUA issues off-site exam and supervision letter

    Federal Issues

    In March, the NCUA issued a release expanding its March 16 off-site policy by extending off-site examinations through May 1. In the release, the NCUA outlined its top three priorities during the Covid-19 pandemic, which include: (i) “credit unions experiencing significant financial or operational problems”; (ii) outreach by examiners to all credit unions regarding “the institution’s operational and financial status” during the pandemic; and (iii) the continuation of off-site examinations. The NCUA added that “[i]f credit unions are occupied with addressing the impact of the COVID-19 pandemic on their operations, employees, and members, they should not be required to address an offsite examination request unless it is a serious or time-sensitive matter.”

    Federal Issues NCUA Examination Supervision Credit Union Covid-19

  • Special Alert: Treasury and SBA release initial details on Paycheck Protection Program

    Federal Issues

    On Tuesday, March 31, the Department of the Treasury and the Small Business Administration released initial details regarding the nearly $350 billion Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security Act. Under the program, private lenders will offer SBA-guaranteed loans to small businesses that require capital to meet payroll and other expenses.

    The SBA published a COVID-19-specific webpage with additional information about programs and resources, and Treasury posted four documents outlining key features of the program, as well as information for borrowers and lenders:

    • The PPP Overview describes the program’s scope, eligibility requirements, and application process. It notes that no-fee loans used to meet payroll and to pay mortgage interest, rent, or utilities may be forgiven, with payments deferred for up to six months. Businesses in all industries with up to 500 employees are eligible, and larger businesses in certain industries may also be eligible. Applications will be accepted starting April 3, 2020.
    • The PPP Lender Information Fact Sheet provides details regarding lenders that are eligible to make the SBA-guaranteed loans. Importantly, all existing SBA-certified lenders are granted “delegated authority” to originate loans eligible for the SBA guarantee (subject to eligibility and other requirements). Federally insured depository institutions and credit unions, as well as Farm Credit System institutions, may also make SBA-guaranteed loans under the program. Lenders that currently do not hold SBA certification may submit applications to participate to the address noted in the Lender Fact Sheet. We expect additional detail regarding the application process in the near future.
    • The PPP Borrower Fact Sheet sets forth information for potential small-business borrowers. One important condition of obtaining a loan under the program: Employee and compensation levels must be maintained.  However payroll costs are capped at $100,000 on an annualized basis for each employee, so any amounts above $100,000 paid to a single employee will not be calculated in the loan amount nor towards meeting a potential threshold for loan forgiveness (e.g., SBA indicates non-payroll costs may be limited to not more than 25% of the forgiven amount). Additional details regarding an exact percentage of the loan that must be used for payroll are forthcoming.
    • The PPP Application Form is now available online. Small businesses will need to provide basic information and respond to disclosure questions, including whether the business is delinquent on any federal debt. The application form requires that the borrower respond to seven certification statements that relate to the intended use of funds, the necessity of the loan to support ongoing obligations of the business, the total number of employees, and that the information in the application is correct. It appears that lenders will calculate loan amounts by referencing the businesses’ prior-year tax returns. Due to the federal extension on filing taxes, most businesses will likely submit 2018 tax returns for review.

    Please see Buckley’s March 30 Special Alert for additional information on the program. We will continue to provide timely updates regarding any guidance published on this topic on our dedicated SBA page, which includes additional SBA resources you may find helpful. If you have any questions regarding the matters discussed in this alert, please contact a Buckley attorney with whom you have worked in the past.

    Federal Issues Special Alerts Federal Legislation CARES Act Department of Treasury SBA Consumer Finance Covid-19

  • Fed establishes temporary repurchase agreement facility

    Federal Issues

    On March 31, the Federal Reserve announced the establishment of a temporary repurchase agreement facility (FIMA Repo Facility) to be available to foreign and international monetary authorities.  The FIMA Repo Facility will allow central banks and other international monetary authorities with accounts at the Federal Reserve Bank of New York to enter into repurchase agreements with the Federal Reserve to temporarily exchange their U.S. Treasury securities held with the Federal Reserve for U.S. dollars, which can then be made available to institutions in their jurisdictions. The facility is intended to provide an alternative temporary source of U.S. dollars other than sales of securities in the open market. The Federal Reserve also issued FAQs that answer question about, among other things, the purpose of the facility, eligibility to participate in the facility, and how the facility is structured. 

    Federal Issues Federal Reserve Federal Reserve Bank of New York Covid-19 Of Interest to Non-US Persons

  • Treasury launches Employee Retention Credit to encourage employment

    Federal Issues

    On March 31, the Treasury Department and the Internal Revenue Service launched the Employee Retention Credit, a resource designed to encourage businesses to keep employees on their payroll during the Covid-19 outbreak. The resource is a refundable tax credit of 50 percent of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by Covid-19. Employers of all sizes, including tax-exempt organizations may qualify to receive the employee retention credit if either: (i) the employer’s business is fully or partially suspended by government order due to Covid-19 during the calendar quarter; or (ii) the employer’s gross receipts are below 50 percent of the comparable quarter in 2019. Once the employer’s gross receipts go above 80 percent of a comparable quarter in 2019 they no longer qualify after the end of that quarter. State and local governments and their instrumentalities, and small businesses who take Small Business Loans are not eligible for the employee retention credit. The credit applies to wages paid after March 12, 2020 and before January 1, 2021, and cover both cash payments and a portion of the cost of employer provided health care.

    Federal Issues Department of Treasury IRS Covid-19 Health Care

  • Rhode Island regulator delays reporting deadlines

    State Issues

    In light of widespread interruptions created by the Covid-19 emergency, the Rhode Island Division of Banking extended the due date for debt collectors, small loan lenders, and debt management companies to submit 2020 Rhode Island Annual Reports to April 30, 2020.  Extensions beyond that date will be considered on a case-by-case basis.

    State Issues Rhode Island State Regulators Covid-19 Consumer Finance

Pages

Upcoming Events