Bank Notes

Harmonizing Reg. O with SBA rules for making PPP loans to Directors and Principal Shareholders

April 20, 2020

The Federal Reserve brought Regulation O¹ (Reg. O) into substantial harmony with the Small Business Administration (SBA) Interim Final Rule² authorizing SBA lenders to extend Payroll Protection Program (PPP) loans to businesses owned or controlled by a lender’s directors and shareholders holding a less than 30 percent equity interest in the lender.  (SBA Interim Rule).  On April 17, 2020, the…

Set-off in the time of PPP: Managing litigation and reputation risk

April 16, 2020

For at least the next several months, you will be funding Payroll Protection Program (PPP) loans for your customers. At the same time, you may be dealing with loan defaults. You will attempt to accommodate your financially stressed borrowers. But, you will continue to have the obligation to make sound credit risk decisions to preserve the bank’s ability to recoup its principal and interest from…

Utilization of Remote Notaries in Kentucky during the COVID-19 Pandemic

April 9, 2020

In this time of mandatory social distancing, the normally routine act of a notary witnessing and attesting to the validity of the signature is complicated. Many transactions depend on the ability of the parties to ensure valid signatures on legally binding documents. However, now notaries often cannot witness signatures in person.

There are two solutions available in Kentucky for many types of…

Public and Investor Communications in the Midst of COVID-19

March 31, 2020

During the COVID-19 crisis, municipal and other bond issuers and borrowers need to be mindful of information provided to investors and lenders. Given the rapid changes, it is difficult to assess whether the immediate impacts of the COVID-19 crisis will only affect an organization’s short-term outlook, or if the impacts will ripple through long-term operations. Issuers and borrowers will receive…