20 March 2012
Publications
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This advisory discusses recent court decisions in the state of Michigan, which presented lenders, master and special servicers with new considerations in enforcing their rights and remedies, but confronted borrowers and guarantors in real estate finance markets with vastly different legal liability and unexpected economic consequences than had previously been understood or thought to have been documented in CMBS mortgage transactions. In CMBS loans, “non-recourse” means recourse solely to the property and cash flow unless there are losses occasioned by the borrower’s “bad boy acts,” for which the borrower and guarantor would be liable and in certain limited events—such as property transfer/subordinate financing, voluntary or collusive involuntary bankruptcy filing and failure to maintain SPE status (no other debt, no other property and no other business covenants)—for which the borrower and guarantor would have full recourse liability for the entire debt.
March 19, 2012
Advisories
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March 15, 2012
Advisories
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The state CEQA Guidelines contain “categorical exemptions” for a variety of projects and activities, so that CEQA review is not required for such projects. Currently, there are 33 categorical exemptions; an exception to all of those exemptions applies, however, for projects “where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.” That exception was recently broadened by the court in Berkeley Hillside Preservation v. City of Berkeley (February 2012), and now the future use of any categorical exemption has been put at risk.
March 2012
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“Past Performance Evaluations: New Rules, Same Challenges,” Law360, March 13, 2012.
March 13, 2012
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March 13, 2012
Publications
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"Dividend Distributions versus Ordinary Income Inclusions: Rodriguez v. Comr.," Tax Management International Journal, Vol. 41, No. 3, March 9, 2012.
March 9, 2012
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A Real Estate Mortgage Investment Conduit (REMIC) is an entity employed to securitize loans secured by real property and that has been granted tax-favored status. In the current economic environment, due to the fact that they hold primarily commercial or residential mortgages, REMICs are commonly faced with workouts of troubled loans. The tax rules that apply to REMICs place restrictions on the activities of a REMIC and the assets a REMIC can hold without risking its tax-favored status. These rules apply to performing and nonperforming loans alike, and therefore restrict when, how and what a REMIC can hold when it forecloses on a loan. The tax rules relating to foreclosure property held by a REMIC, discussed in this advisory, are intended to prevent a REMIC from engaging in activities that are the equivalent of operating a business.
March 6, 2012
Advisories
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“New Michigan Law Imposes a Tax on Claims Paid by Employer-Sponsored Health Plans,” ECFC Flex Reporter, March 2012.
March 2012
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March/April 2012
Publications
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This advisory discusses Section 305, an antique weapon that mostly misfires, and the confusion that can arise when Section 305(b) is encountered by a closely held corporation.
March 1, 2012
Advisories
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“New Guidance on Distribution of Medical Loss Ratio (MLR) Rebates Creates Issues for Group Health Plan Sponsors,” ECFC Flex Reporter, March 2012.
March 2012
Publications
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“Exploring Health Care Reform’s $2500 Cap for Health FSA Salary Reductions,” ECFC Flex Reporter, March 2012.
March 2012
Publications
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“When Is a Summary More Than a Summary, Part Two: Agencies Issue Final Guidance on the ACA’s Uniform Summary of Benefits and Coverage Requirement,” ECFC Flex Reporter, March 2012.
March 2012
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February 29, 2012
Advisories
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This advisory discusses an OFAC final rule (the “Rule”), effective today, that implements Section 1245(d) of the National Defense Authorization Act for Fiscal Year 2012 (NDAA), which requires the imposition of sanctions on the Central Bank of Iran and designated Iranian financial institutions (see Alston & Bird LLP International Trade & Regulatory Group Advisory “Congress Finalizes New Sanctions Legislation Aimed at Foreign Banks Over Iran Trade” (Dec. 16, 2011). The Rule amends OFAC’s Iranian Financial Sanctions Regulations (31 C.F.R. Part 561) and reissues them in their entirety. It also implements certain provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA).
February 27, 2012
Advisories
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