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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 the Secured Overnight Financing Rate (SOFR) as s replacement to LIBOR and has put in place a comprehensive plan of…
On Wednesday, April 10, Mayer Brown co-hosted with Fitch Ratings a “CLOs and Direct Lending in Chicago” seminar. This was the 7th consecutive annual iteration of this event with Fitch. An audience of over 120 attendees (and in excess of 200 registrants) heard from middle market participants and researchers. The agenda included a macroeconomic update by Fitch’s Chief Economist, a panel on the Growth and Appeal of Direct Lending as an Asset Class, a Regulatory…
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…
According to a related presale report (and as had been announced in an earlier request for proposal), 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). Under the SHREC program, the utility SHREC buyers are directed by statute to enter into purchase agreements for the related SHRECs.…
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).…
As anticipated, Japan’s Financial Supervisory Authority (FSA) has released its final risk retention rule (in Japanese) in substantially the same form (including as to grandfathering) as FSA had previously published last December. Our chart comparing the Japanese proposal with existing EU and US risk retention requirements is here. FSA has also released related FAQs as well as responses to comments received.…
Congress amended the Truth in Lending Act in May 2018 by directing the Consumer Finance Protection Bureau to prescribe ability-to-repay regulations with respect to Property Assessed Clean Energy (“PACE”) financing. PACE financing helps homeowners cover the costs of home improvements, which financing results in a tax assessment on the consumer’s property. Ability-to-repay regulations, which TILA and the CFPB currently impose in connection with most closed-end residential mortgage loans, would generally require a creditor to consider…
Congress amended the Truth in Lending Act in May 2018 by directing the Consumer Finance Protection Bureau to prescribe ability-to-repay regulations with respect to Property Assessed Clean Energy (“PACE”) financing. PACE financing helps homeowners cover the costs of home improvements, which financing results in a tax assessment on the consumer’s property. Ability-to-repay regulations, which TILA and the CFPB currently impose in connection with most closed-end residential mortgage loans, would generally require a creditor to consider…