Areas Of Concentration
- Asset-Backed Securities
- Capital Call Transactions
- Commercial Loans
- Consumer Loans
- Credit Card Receivables
- Equipment Finance Receivables
- Esoteric Assets and Emerging Asset Classes
- Motor Vehicle Loans, Leases, and Floorplan Receivables
- Oil and Gas and Utilities Receivables
- Renewable Energy Assets
- Structured Settlements
- Student Loans and Education Finance
- Timeshare Receivables
- Trade Receivables
- Transportation Assets
- Collateralized Loan Obligations and Collateralized Debt Obligations
- Commercial Paper and Bank-Financed Transactions
- Community Development and Charter School Finance
- Corporate Debt Repackaging Securities
- Industry Advocacy and Regulatory Counsel
- Mortgage-Backed Securities
- Municipal Asset Securitizations
- Portfolio Acquisitions and Principal Finance
- Troubled Securitizations
- Trustees and Back-Up Servicers
- James Abney
- Kimberly Ahlgrim
- Melissa Ahn
- Adrienne Ancheta
- Anna Anderson
- Cynthia Baker
- Zachary Baughman
- Walter Begley
- Matthew Boba
- Colman Burke
- James Cantrell
- Besty Chang
- Catherine Choo
- Valerie Clark
- Craig Cohen
- Marla Chernof Cohen
- Richard Cosgrove
- Lara Daly-Sims
- Aaron Efta
- Scott Elsworth
- Demetrios Festa
- Craig Fishman
- Preetha Gist
- Melanie Gnazzo
- Felicia Graham
- William Gray
- John Hitt, Jr.
- Thomas Howard
- R. William Hunter
- John Ketcham
- Gregory Klamrzynski
- Steven Kopp
- Douglas Madsen
- Kenneth Marin
- Christopher McGovern
- Kellie Merkel
- David Mills
- Michael Mitchell
- Timothy Mohan
- Orion Mountainspring
- Cary Nadelman
- Mitchell Naumoff
- David Nirenberg
- Abby Nyantakyi
- William Petraglia
- Patrick Quill
- Daniel Swanson
- David Sykes
- Marilynn Tham
- Franklin Top III
- Brittany Viola
- R. Bradley Vollkommer
- Michael Welch
- Imran Yassin
- Samuel Yoo
- Kevin Zhao
At Chapman and Cutler, we have an industry-leading asset securitization and structured finance practice focused on helping clients finance a broad range of financial assets. Our attorneys have a deep understanding of the nuances and complexities of executing highly sophisticated financing transactions in a rapidly changing marketplace. We are dedicated to bringing creative, practical, and efficient solutions to our clients’ asset-based financing needs in the U.S. and abroad.
Our extensive experience includes:
- representing issuers in establishing, structuring, and restructuring their securitization programs for traditional assets, such as credit cards, auto loans and leases, and consumer loans;
- representing a substantial number of asset-backed commercial paper (ABCP) sponsors in structuring and restructuring their ABCP programs and representing commercial banks and their sponsored conduits in financing a wide array of financial assets;
- handling numerous asset-backed transactions involving unique revenue streams, including those associated with esoteric asset classes;
- representing issuers, underwriters, investors, and trustees in financing transactions of a variety of asset classes;
- leading industry groups in market-wide initiatives addressing the most extensive regulatory reforms ever to impact the structured finance market;
- representing numerous trustees, collateral agents, and servicers and back-up servicers in virtually all manner of securitization and structured finance transactions;
- advising clients on derivatives and structured products that are essential components of securitization transactions; and
- counseling clients on the acquisition of portfolios of credit card accounts and receivables, student loans, and other consumer loans, many of which are financed through securitizations.
Because we are uniquely focused on finance, Chapman’s securitization and structured finance attorneys complement the other practices in our firm and draw upon those other practices to deliver comprehensive service.
Asset Securitization Updates
- Client AlertApril 2, 2020
Yesterday the Federal Reserve announced it was temporarily removing Treasury securities and deposits at Federal Reserve Banks from the supplementary leverage ratio applicable to Category I-III bank holding companies or US intermediate holding companies of foreign banks.
- Client AlertApril 1, 2020 (Updating a March 31, 2020 Client Alert)
This client alert has been updated from our March 31, 2020 client alert to reflect guidance from the U.S. Treasury Department and the Small Business Administration.
- Client AlertMarch 31, 2020
The cornerstone of the CARES Act’s relief package for small businesses is the Paycheck Protection Program, under which the Small Business Administration will guarantee up to $349 billion in small business loans.
- Client AlertMarch 30, 2020
This Client Alert focuses on some major programs established by the Coronavirus Aid, Relief, and Economic Security Act to financially support, through loans or grants, (1) small businesses, (2) larger businesses, and (3) states and municipalities.
- Client AlertMarch 24, 2020
On March 23, the Federal Reserve announced the establishment of the Term Asset-Backed Securities Loan Facility to support the flow of credit to consumers and businesses.
- Client AlertMarch 24, 2020
On March 23, the Federal Reserve issued further amendments to add negotiable certificates of deposit and all short-term municipal securities to the list of eligible collateral.
- Client AlertFederal Reserve Amends Pricing, Adds Municipal Issuers, and Makes Other Changes for Recently Established Commercial Paper Funding FacilityMarch 24, 2020
On March 23, the Federal Reserve added municipal issuers and amended the pricing for the commercial paper funding facility announced on March 17 and issued other “program terms and conditions” posted on the website of the Federal Reserve Bank of New York.
- Client AlertMarch 23, 2020
This morning, the Board of Governors of the Federal Reserve System announced sweeping actions to help the economy.
- Client AlertMarch 20, 2020
On March 18, the Federal Reserve announced a Money Market Fund Liquidity Facility to make loans to banks and certain affiliates secured by certain assets acquired from “prime” money market funds. Earlier today, the Federal Reserve issued amendments to the program.
- Client AlertMarch 19, 2020
On March 17, the Federal Reserve Board announced the establishment of two emergency funding facilities that closely mirror facilities established in 2008 during the last financial crisis in providing liquidity to both short and long term funding markets.
- ConferenceFebruary 23-26, 2020
Chapman attorney David Sykes spoke at the Structured Finance Association's Vegas 2020 conference.
- ConferenceDecember 8-10, 2019
Chapman attorneys Patrick Quill and Bradley Volkommer spoke at CLO Summit 2019.
- ConferenceNovember 20, 2019
Chapman attorney Marc Franson spoke at the 5th Annual ABS Tech Conference.
- ConferenceSeptember 22-24, 2019
Chapman attorneys Melanie Gnazzo, David Sykes, and Evan Kelson spoke at the 25th Annual ABS East Conference.
- Client AlertJuly 16, 2019
On July 16, in an open meeting of the FDIC Board of Directors a memorandum and resolution regarding a Notice of Proposed Rulemaking on a Proposed Amendment to Securitization Safe Harbor Rule was passed.
- White PaperApril 2019
The 2019 update of Chapman's book, "The Regulation of Marketplace Lending: A Summary of the Principal Issues," addresses the latest true lender developments, the OCC charter for fintech companies, CFPB changes and how they may affect regulatory priorities and enforcement, the roles of banks in marketplace lending, and servicing and collection issues.
- ConferenceApril 28–30, 2019
Chapman attorney Melanie Gnazzo spoke at the Equipment Leasing and Finance Association's 2019 Legal Forum.
- ArticleReal Estate Finance JournalSpring 2019
Having failed in attempts to accelerate the termination of a CDO, an investor group holding senior notes filed an involuntary petition against an issuer to liquidate the CDO before its stated maturity under the U.S. Bankruptcy Code.
- ConferenceMarch 20, 2019
Chapman attorneys Marc Franson and Melanie Gnazzo spoke at the 18th Annual Investors' Conference on Equipment Finance.
- ArticleFederal Banking Regulators Propose New Bank Holding Company Category System to Apply to Capital and Liquidity Requirements and to Enhanced Prudential StandardsThe Banking Law JournalMarch 2019
This article outlines the features of proposals to adjust the applicability of certain capital and liquidity tests and certain enhanced prudential standards for bank holding companies.
- ConferenceFebruary 24-27, 2019
Chapman attorneys Preetha Gist, Tim Mohan, and David Sykes spoke at the Structured Finance Industry Group's Vegas 2019 conference.
- Client AlertDecember 11, 2018
The state of Colorado initiated two lawsuits against online lending platforms. The suits alleged that the platforms had violated the state’s Uniform Consumer Credit Code by charging interest and some fees in excess of those allowed under Colorado law and that the consumer loan agreements utilized a non-Colorado governing law provision, also in violation of the law.
- ConferenceNovember 28-30, 2018
Chapman attorney Patrick Quill spoke at CLO Summit 2018, which was sponsored by Chapman.
- Client AlertNovember 1, 2018
On September 30, the Governor of California signed into law Senate Bill No. 1235, which amends the California Financing Law (previously known as the Finance Lenders Law) to impose new disclosure requirements on licensed commercial lenders and brokers including for online lending programs doing business in California.
- ConferenceSeptember 23-25, 2018
Chapman attorneys Preetha Gist and John Hitt spoke at the 24th Annual ABS East Conference.
- ConferenceSeptember 13-16, 2018
Chapman attorney Sam Yoo spoke at the 2018 International Association of Korean Lawyers Conference.
- Client AlertJuly 9, 2018
On June 14, the Board of Governors of the Federal Reserve System issued a final rule that establishes credit limits for single counterparties of US bank holding companies and foreign banking organizations with $250 billion or more in assets, and US intermediate holding companies of covered FBOs with $50 billion or more of consolidated assets.
- Client AlertMay 23, 2018
On May 22, the House passed Senate bill S. 2155, which would amend certain Dodd-Frank provisions and, primarily for smaller banks and credit unions, provide additional regulatory relief. President Trump is expected to sign the bill, so that it will take effect as law.
- Client AlertBasel Committee Issues Simple, Transparent and Comparable Securitisation Framework for Short-Term SecuritisationsMay 17, 2018
On May 14, the Basel Committee on Banking Supervision issued two documents entitled “Criteria for Identifying Simple, Transparent and Comparable Short-Term Securitisations” and “Capital Treatment for Simple, Transparent and Comparable Short-Term Securitisations.”
- Client AlertBasel Committee Issues Simple, Transparent and Comparable Securitisation Framework for Short-Term SecuritisationsMay 14, 2018
Today, the Basel Committee on Banking Supervision issued two documents entitled “Criteria for Identifying Simple, Transparent and Comparable Short-Term Securitisations” and “Capital Treatment for Simple, Transparent and Comparable Short-Term Securitisations.”
- ConferenceApril 18, 2018
Chapman attorney David Sykes spoke at the 6th Annual Green Investing Conference.
- White PaperMarch 2018
Chapman’s "Defaulted Securities: The Guide for Trustees and Bondholders" advances understanding and consideration of issues related to trustees and bondholders in both corporate and municipal financings.
- ArticleJournal of Taxation of Financial ProductsMarch 2018
This article describes the impact of the Tax Cuts and Jobs Act on securitization transactions. The article addresses in detail the new limitation on the deduction for business interest expense as well as the requirement that the transferee of an equity interest in a partnership engaged in a US trade or business withhold 10% of the amount realized unless the transferor certifies that it is a US person.
- ConferenceMarch 20, 2018
Chapman attorneys Tom Howard and Todd Plotner spoke at the Equipment Leasing and Finance Association's 17th Annual Investors' Conference on Equipment Finance.
- ConferenceFebruary 25-28, 2018
Chapman attorneys Preetha Gist, Melanie Gnazzo, Tom Howard, and Tim Mohan spoke at SFIG Vegas 2018.
- Client AlertFebruary 21, 2018
In light of the increasing significance of cybersecurity incidents, the SEC published a press release and additional Commission-level guidance regarding disclosure obligations relating to cybersecurity risks and incidents, which reinforces and expands upon the SEC staff guidance provided in 2011 and addresses two additional topics.
- Client AlertDC Circuit Court of Appeals Holds That Open Market CLO Managers Do Not Have to Comply With Dodd-Frank Risk Retention RequirementsFebruary 9, 2018
The US Court of Appeals for the District of Columbia Circuit recently issued a decision in a case that involved a question of whether the risk retention requirements imposed by Section 941 of the Dodd-Frank Act required open market CLO managers to retain risk in those transactions they managed.
- Client AlertDecember 21, 2017
On December 20, Congress passed the act commonly referred to as the Tax Cuts and Jobs Act of 2017. Although no provision of the Act was designed specifically to address securitization transactions, two new sets of rules are likely to have significant effects on at least some securitization transactions
- Client AlertNovember 3, 2017
On November 2, Representative Kevin Brady released the proposed text of the long-awaited federal income tax reform bill. The bill also includes a provision that creates a limit on the deductibility of interest. If enacted, this provision could have potentially wide-reaching impacts on securitization transactions.
- Client AlertOctober 6, 2017
In September, the IRS released proposed regulations that would not only change the types of instruments that are registration-required obligations, but also clarify when a registration-required obligation meets the requirements to be treated as issued in registered form.
- ArticleBasel Committee Proposes Simple, Transparent and Comparable Securitisation Framework for Short-Term SecuritisationsPratt's Journal of Bankruptcy LawOctober 2017 (Originally Published July 27, 2017)
On July 6, 2017, the Basel Committee on Banking Supervision issued two consultative documents entitled “Criteria for Identifying Simple, Transparent and Comparable Short-Term Securitisations” and “Capital Treatment for Simple, Transparent and Comparable Short-Term Securitisations.”
- ConferenceSeptember 17–19, 2017
Chapman attorneys Preetha Gist and John Hitt spoke at the 23rd Annual ABS East Conference.
- White PaperAugust 2017
Keeping track of the regulatory developments affecting asset-backed commercial paper (“ABCP”) conduits and their sponsors is a daunting task. This updated desk reference reviews regulatory and legislative developments affecting the ABCP market.
- Client AlertJuly 12, 2017
More than a year after the Consumer Finance Protection Bureau submitted a proposed rule to limit consumer financial services contract arbitration clauses, the CFPB sounded the death knell on July 10, 2017, when it released its long-awaited final rule.
- Client AlertJune 14, 2017
On June 12, the Department of Treasury issued the first report in a series regarding regulation of the financial system in a manner consistent with Core Principles set forth in Executive Order 13772 signed by President Trump on February 3, 2017.
- ArticleThe Banking Law JournalMay 2017
The May 2015 decision of the U.S. Court of Appeals for the Second Circuit in Madden v. Midland Funding, LLC sent shockwaves through the marketplace lending industry, and nearly two years later the questions generated by this case remain largely unanswered. These questions have been further complicated by the long-awaited remand decision from the U.S. District Court for the Southern District of New York.
- Client AlertMay 2, 2017
On April 19, the House Financial Services Committee posted a “discussion draft” of a revised version of the CHOICE Act. The discussion draft contains most of the provisions in last year’s bill with a number of important changes.
- Client AlertFebruary 28, 2017
On February 27, the U.S. District Court for the Southern District of New York issued its long-awaited remand decision in Madden v. Midland Funding, LLC.
- Client AlertFebruary 22, 2017
The U.S. Court of Appeals for the D.C. Circuit made headlines following its decision in the PHH Corporation et al. v. Consumer Financial Protection Bureau case. The Court found that the CFPB’s single-director, removable-only-for-cause structure was unconstitutional. However, the Court has now vacated that order in its entirety and set the case to be heard again en banc.
- ArticleFinancial CHOICE Act (H.R. 5983) as Guide to Possible Financial Regulatory Reform, Including “Dodd-Frank Repeal”Pratt's Journal of Bankruptcy LawFebruary/March 2017
With Republicans retaining control of both chambers of Congress and Donald Trump elected President, the prospects for financial regulatory reform have changed. Many observers point to the Financial CHOICE Act as the best indication of Republican Congressional aspirations for such reform.
- To the Point!Legal, Operations, and Strategy Briefs for Financial InstitutionsDecember 6, 2016
On Friday, Comptroller of the Currency Thomas Curry announced that the Office of the Comptroller of the Currency will issue limited-purpose bank charters to qualified fintech companies.
- ArticleLending TimesJuly 25, 2016 (Originally Published July 22, 2016)
A recent decision of the Maryland Court of Appeals could require marketplace lenders and others who arrange for federal or state banks to fund consumer loans to consumers residing in Maryland to obtain licenses as “credit services businesses” and could prohibit them from arranging those loans at interest rates exceeding the applicable Maryland usury caps.
- Client AlertMay 20, 2016
On April 4, the U.S. Treasury Secretary announced that the government would release regulations to curb inversions and reduce the ability of companies to avoid taxes through “earnings stripping;” those regulations were published in the Federal Register on April 8th.
- Client AlertMay 16, 2016
On May 10, 2016 the U.S. Department of the Treasury published a white paper entitled “Opportunities and Challenges in Online Marketplace Lending.” The White Paper follows the “Request for Information” which the Department published in July 2015 to solicit public input on various topics concerning marketplace lending.
- Client AlertClient AlertApril 22, 2016
On March 4, 2016 the Board of Governors of the Federal Reserve System issued a Notice of Proposed Rulemaking re-proposing a rule that would establish credit limits for single counterparties ofU.S. bank holding companies, foreign banking organizations, and U.S. intermediate holding companies of an FBO, with $50 billion or more of consolidated assets.
- Client AlertMarch 21, 2016
On Friday, March 18, 2016, the United States Supreme Court issued a call for the views of the Solicitor General of the United States before it decides whether to hear an appeal from a Second Circuit Court of Appeals decision rendered last May in the case of Madden v. Midland Funding, LLC.
- To the Point!Legal, Operations, and Strategy Briefs for Financial InstitutionsMarch 10, 2016
On March 7, the CFPB announced that it is accepting consumer complaints about online marketplace lenders, giving consumers “a greater voice in these markets and a place to turn to when they encounter problems.” The CFPB also issued a bulletin to provide consumers with information on marketplace lending.
- Client AlertThe Next Compliance Hurdle under Regulation AB II: Annual Compliance Checks to Determine Continued Shelf EligibilityClient AlertFebruary 23, 2016
In this article, we provide a brief overview of the key reforms under Regulation AB II, followed by a more focused review of the next compliance hurdle that ABS issuers will face — annual compliance checks to determine continued shelf eligibility.
- Client AlertFebruary 1, 2016
A recent decision of the U.S. District Court for the Eastern District of Pennsylvania has highlighted once again the regulatory risks that the so-called “true lender” doctrine can create for internet-based lenders who partner with banks to establish exemptions from applicable state consumer protection laws.
- Client AlertNovember 9, 2015
A recent decision of the Maryland Court of Special Appeals could impact marketplace and other lenders who arrange for federal or state banks to fund consumer loans in Maryland at rates in excess of the applicable Maryland usury caps.
- ArticleFederal Court Decision Creates Uncertainty for Non-Bank Loan Assignees and Certain Marketplace Lenders Regarding the Scope of Federal Preemption of State Usury LawsThe Banking Law JournalSeptember 2015 (Originally Published June 3, 2015)
The Banking Law Journal republished a Chapman Client Alert.
- Client AlertAugust 13, 2015
In the case of Madden v. Midland Funding, LLC, the Second Circuit narrowly interpreted the scope of federal preemption of state usury laws under the National Bank Act as such laws apply to certain non‑bank loan assignees.
- Chapman InsightsChapman InsightsJune 30, 2015
The purpose of this article is to provide a general overview of how royalty-backed securitizations work and to encourage further use of royalty-backed securities by leaders in the music, business, and financial industries.
- White PaperOctober 23, 2014
In September 2014, the U.S. banking agencies adopted final rules implementing a liquidity coverage ratio requirement that will test a bank's ability to withstand "liquidity stress periods." In collaboration with the Structured Finance Industry Group (SFIG), Chapman attorneys authored a guide summarizing elements of the final rule that have the greatest impact on the securitization market.
- Chapman InsightsSeptember 10, 2014
On September 3, 2014, the US banking agencies adopted final rules implementing a liquidity coverage ratio (LCR) requirement that will test a bank's ability to withstand liquidity stress periods. The specific objective of the LCR rules is to ensure that a bank has enough high quality liquid assets (referred to as HQLA) that can be immediately converted into cash to meet its liquidity needs for a 30-day stress period.
- Client AlertNew Regulation YY Intermediate Holding Company Requirement and Enhanced Prudential Standards for Large Foreign Banking Operations in the United StatesClient AlertMay 8, 2014
On February 18, 2014, the Federal Reserve issued the final version of new Regulation YY establishing “enhanced prudential standards” for large bank holding companies and large foreign banks operating in the United States.
- Client AlertTax Reform Act of 2014--Derivatives, Hedges and Other Financial Product and Securitization Relevant ProvisionsClient AlertMarch 4, 2014
On February 26, 2014, Representative David Camp, chair of the House Ways and Means Committee, released draft legislation referred to as the Tax Reform Act of 2014 that proposes to amend major portions of the Internal Revenue Code to provide for comprehensive tax reform.
- Client AlertClient AlertDecember 18, 2013
Federal regulators approved final regulations implementing the “Volcker Rule” on December 10, 2013.
- Client AlertClient AlertOctober 30, 2013
On October 24, 2013, the Board of Governors of the Federal Reserve Board released a proposed rule that introduces a liquidity coverage ratio requirement that will test a bank's ability to withstand "liquidity stress periods."
- Client AlertClient AlertOctober 23, 2013
On October 4, 2013, a Chicago bankruptcy court judge decided a case which establishes favorable precedent for the securitization market.
- Client AlertFederal Reserve Board Adopts Final Basel III Risk-Based Capital Rule: Initial Thoughts on Securitization ProvisionsClient AlertJuly 3, 2013
On July 2, the Board of Governors of the Federal Reserve System adopted a final rule revising its risk-based and leverage capital requirements. The changes to the Advanced Approaches framework will be effective January 1, 2014 and the new Standardized Approach framework will be effective January 1, 2015. While we are still in the process of reviewing the rule and the release (it totals 971 pages), our initial impressions of the securitization sections of the rule are set forth in this client alert.
- Client AlertClient AlertMay 16, 2013
Beginning June 10, 2013, many securitization issuers could be required to submit newly executed interest rate swaps for clearing under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and implementing regulations.
- Client AlertClient AlertFebruary 5, 2013
On January 7, 2013, the Basel Committee on Banking Supervision (Committee) issued major revisions to the “liquidity coverage ratio” (LCR) it published in 2010.
- Client AlertBasel Committee on Banking Supervision Publishes Consultative Paper Regarding Revisions to the Securitization FrameworkClient AlertJanuary 9, 2013
On December 18, 2012 the Basel Committee on Banking Supervision published a consultative document entitled “Revisions to the Securitisation Framework.” The paper contains the Committee’s proposed revisions to the securitization framework following its “fundamental review” of the existing framework.
- Client AlertCommodity Pool Regulation of Securitization Vehicles – CFTC Staff Expands Prior Relief and Provides Broad Exclusion from Commodity Pool Definition; Also Provides No Action Relief for Legacy Transactions and Extension of CPO Registration Deadline to MarchChapman Clint AlertDecember 21, 2012
By letter dated December 7, 2012, the Division of Swap Dealer and Intermediary Oversight of the Commodity Futures Trading Commission released interpretive guidance significantly expanding the scope of its October 11, 2012 interpretive letter. The October 11 Letter confirmed that securitization vehicles that satisfy five criteria, including a requirement that they operate consistent with either Regulation AB or Rule 3a-7 under the Investment Company Act of 1940, should not be “commodity pools” as a result of holding a swap nor should their operators be required to register as “commodity pool operators” under the Commodity Exchange Act and CFTC rules.
- Client AlertCFTC Staff Confirms that Certain Securitizations are Not Commodity Pools and Extends Registration Deadline for Certain Commodity PoolsClient AlertOctober 19, 2012
By letter dated October 11, 2012, the Division of Swap Dealer and Intermediary Oversight of the Commodity Futures Trading Commission 1 released interpretive guidance confirming that certain securitization vehicles should not be included within the definition of “commodity pool” and that operators of such vehicles should not be included within the definition of “commodity pool operator” under the Commodity Exchange Act and CFTC rules. Separately, in a no-action letter dated October 11, 2012, the Division conditionally extended the deadline for registration as a commodity pool operator from October 12, 2012 to December 31, 2012 for vehicles that are commodity pools solely by virtue of their involvement with swaps.