Strategic alliances between banks and fintech companies to offer online loans have been the subject of legal negotiations and court cases over the past few years. Some of these bank alliances have been challenged in the courts by using the “true lender doctrine”. The doctrine states that at the time a loan is originated, the lender […]
Continue reading →Although the court held that a lender breached a $750 million revolving credit facility by failing to lend, the lender was protected from liability by a term in the credit facility disallowing consequential damages. In re Lyondell Chemical Co., No. 17-4375-DLC, 2018 WL 565272 (S.D.N.Y. Jan. 24, 2018) the terms of a specific credit agreement provision […]
Continue reading →A multi-state licensing agreement (“Compact”), that standardizes certain elements of the licensing process for money services businesses (“MSB”), has been implemented. MSB include money transmitters, payment service providers, and currency exchangers. The agreement provides that if one state in the Compact has reviewed certain license requirements such as IT processes, cybersecurity, business plan, background check and compliance […]
Continue reading →There has been litigation and public concern about the structure of the Consumer Financial Protection Bureau (“CFPB”) in that a single-director model was created rather than multiple directors at other federal agencies. In the earlier action by PHH the D.C Circuit had held, among other issues, that the single-director status and only the removal of […]
Continue reading →On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued a final rule prohibiting class action waivers in predispute arbitration clauses contained in covered consumer financial services agreements. The four primary provisions of the final rule are as follows: Under the final rule, a “predispute arbitration agreement” is defined as: “an agreement between a […]
Continue reading →The Ninth Circuit Court of Appeals issued its decision in McKeen-Chaplin v. Provident Savings Bank, FSB, (“PSB”) No. 15-16758 on July 5, 2017. The appeal presents the question of whether a class of mortgage underwriters are entitled to overtime compensation under the Fair Labor Standards Act (“FLSA” or “the Act”), 29 U.S.C. § 201 […]
Continue reading →Compensation Practice The “finders” exemption, went into effect on January 1, 2016 at Corporations Code Section 25206.1. Finders who satisfy the requirements of the exemption can now receive transaction-based compensation on the sale of a security in California. The exemption is available to individuals (not otherwise registered as a broker-dealer or agent) who meet the […]
Continue reading →The Conference of State Bank Supervisors (“CSBS”), which represents state chartered banks nationwide, filed suit against the Office of the Comptroller of Currency (“OCC”) in the US district court of the District of Columbia in April, 2017, regarding the OCC’s issuance of a new non-bank “fintech charter”. The complaint alleges that the OCC is over-reaching […]
Continue reading →Harriet B. Alexson will be the moderator for a panel on “Funding Emerging, Growth and Recovering Businesses” on May 16, 2017 at noon at Orange County Bar Association (“OCBA”) Headquarters in Newport Beach, Ca. The program is sponsored by the OCBA Banking and Lending Section. This program will discuss the business and legal requirements of […]
Continue reading →Strategic Alliances are contractual agreements between business entities, or in some cases individuals to share business assets, including but not limited to intellectual property, licensing, etc. contribute funds and to some extent share technology and employees to achieve a mutual financial goal. These arrangements are well-known in the real estate industry as joint ventures and […]
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