COVID-19

Model Standstill/Tolling Agreement

04/15/20

The Business Law Section of the American Bar Association has posted a model standstill/tolling agreement drafted by Jonathan Lipson and Norm Powell. Business relationships will undoubtedly strain as the crisis means more parties are not able to fulfill their side of a deal.

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Term Asset-Backed Securities Loan Facility

04/15/20

On April 9, 2020, the Federal Reserve issued an updated term sheet for the Term Asset-Backed Securities Loan Facility (“TALF”).  Under TALF, the Federal Reserve will make an equity investment of $10 billion in a special purpose vehicle (“SPV”) that will in turn make up to $100 billion of non-recourse loans fully secured by eligible ABS.   

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Coronavirus Will Hasten the Shift To App-Based Banking and Lending. How Will That Affect People's Pocketbooks?

04/14/20

Over at the Machine Lawyering blog -- organized and edited by the Chinese University of Hong Kong's Law Faculty’s Centre for Financial Regulation and Economic Development -- Slipster Nathalie Martin and I just posted some commentary about our new article,

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Corona Cash and Refund Anticipation Checks

04/12/20

Vijay Raghavan, who will be joining the Brooklyn Law School faculty this summer and his colleague Tom James, shared a troubling observation about the payment of the recovery rebates ("Corona Cash" or "Mnuchin Mnoney") through direct deposit to taxpayers.

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Precautionary and Prudency Measures for Boards Addressing COVID-19 Business Uncertainties

04/10/20

The COVID-19 pandemic has caused unprecedented economic disruptions worldwide.  Businesses that were previously flourishing are now seeing rapid declines in demand and revenue, disruptions in their supply chains, and other operational interferences.  Previously projected business plans for development and expansion may no longer be feasible.  Boards of directors facing these challenges would be well served to review their legal obligations and fiduciary duties as they help guide their companies through these challenges.

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CARES Act "Rebates" and Bankruptcy

04/08/20

Related to Pamela's last post and our article regarding garnishments and the CARES Act "rebates," the US Trustee issued a notice to Chapter 7 and Chapter 13 trustees giving them guidance on what to do about them in a bankruptcy case.

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Treasury Must Act Now To Protect Relief Payments From Debt Collectors

04/08/20

The CARES Act provides for direct "rebate" payments to American households. Treasury is gearing up to send some of those payments out soon. But Congress forgot to protect the payments from garnishment.

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Updates on the Affiliation Rules Applicable to the Paycheck Protection Program (Title I of the CARES Act)

04/06/20

On April 3, 2020, the U.S. Department of the Treasury (Treasury) and U.S.

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Updates on the Paycheck Protection Program under the CARES Act: The SBA’s April 2, 2020 Interim Final Rule

04/03/20

On April 2, 2020, the U.S. Small Business Administration (SBA) released its Interim Final Rule[1], which provides further guidance on the Paycheck Protection Program (PPP) as enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

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COVID-19: Small Business Bankruptcy Relief

04/01/20

Last week, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law, implementing broad relief for individuals and businesses affected by COVID-19.  One of the sections of the CARES Act receiving less attention is a temporary amendment to the Bankruptcy Code to provide streamlined reorganization procedures for businesses with debt of less than $7.5 million. 

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