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Attorneys & Other Professionals
M. JOHN TROFA
Partner
Chicago (V-Card)
T: 312.845.3777
F: 312.516.1977
trofa@chapman.com
John Trofa is a partner in the firm’s Public Finance Department and his practice has been concentrated in the area of municipal reinvestment products, mortgage and other asset-backed finance (both taxable and tax-exempt) and tax-exempt derivative products. He has been practicing law since 1981 when he joined Chapman and Cutler LLP.

Mr. Trofa represents providers of municipal reinvestment products and has been responsible for the implementation of over $8 Billion of investment contracts for such clients. Mr. Trofa also acts as underwriter’s counsel to numerous investment banking firms in connection with the offering and sale of tax-exempt securities, asset-backed securities and derivative products. In addition, his experience includes general securities laws matters including broker/dealer representation, the law of perfection of lien and security interests and representation of purchasers in corporate and tax-exempt private placements. Mr. Trofa also acts as bond counsel for several housing finance agencies (“HFAs”) in connection with single family and multifamily land financings and as partnership counsel in connection with multifamily tax credit financings.

Mr. Trofa has been instrumental in the structuring of numerous innovative products for municipal reinvestment providers, investment banking firms and municipal issuers. A representative list of such products includes:

  • The interest only strip structure (Custodial Receipts) to provide funds for costs of issuance and down payment assistance for issuers of housing bonds
  • The first forward delivery tax-exempt single family bond structure in order to alleviate the impact of negative arbitrage
  • Option bond structure to achieve current savings for municipal issuer clients in connection with transactions not eligible for advanced refunding
  • Special purpose vehicles (SPV) for the reinvestment of bond proceeds where the credit rating of the SPV was solely dependent on the asset base without credit support from a rated entity
  • Repurchase Agreements for the reinvestment of bond proceeds rated independently from the rating of the Repo provider
  • Securitization of pools of multifamily bonds from multiple issuers utilizing an aggregated cash flow method as the basis for the credit rating
  • Shelf registration for the securitization of corporate and government securities for publicly registered offering
  • Programs for the recycling of mortgage prepayments using money market investments
  • Trust/partnership vehicle for the securitization of tax exempt assets of hedge funds
Mr. Trofa has appeared as a lecturer and panelist at mortgage-backed securities seminars and has conducted several in-house derivative product seminars for investment banking firms. Mr. Trofa serves on the legislative committee for the Texas Association of Local Housing Finance Agencies.

Recent:
Practice FocusMemberships
  • Texas Association of Local Housing Finance Agencies
Admitted
  • Illinois
Education
  • University of Illinois College of Law, J.D., 1980
  • Boston College, B.A., History/Economics, 1976
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