Chapman and Cutler has an extensive history of representing banks lending money on a subordinated basis to other banks for regulatory capital purposes.

Chapman practice group attorneys are well-versed in the nuances of regulatory capital note law.

Making subordinated loans to banks and bank holding companies that qualify as regulatory capital requires in-depth understanding of the many regulatory principles governing such debt. Our firm understands these principles and has collective experience in creatively conveying these principles to our valued bank-lending clients. We work with each client to structure and document his or her individual transactions in a way that allows the client’s customer to treat the debt as regulatory capital.





Representative Transactions

  • We represented a local Chicago-based bank in connection with a $20 million, ten-year subordinated term loan to a Montana-based bank holding company.
  • Our practice group attorneys served as counsel to the agent bank in connection with a $20 million, seven-year subordinated term loan qualifying as Tier‑2 capital made to a Florida-based national bank.
  • The firm negotiated a $25 million, five-year subordinated term loan qualifying as Tier‑2 capital to a North Dakota-based national bank.
  • Additionally, we counseled a bank client in the completion of a complex transaction for a national bank based in Indiana, solidifying a $5 million, seven-year subordinated term loan qualifying as Tier‑2 capital.
  • Chapman and Cutler advised the agent bank on a $25 million subordinated term loan facility to a Florida state bank which qualified as Tier-2 capital.

We have always been focused on finance.

  • 1913
    TS Chapman partners with Henry Cutler to form Chapman and Cutler
  • 1st
    Chapman's first client in 1913 is still a client of the firm today
  • 22
    Diverse financial practices serving regional, national, and global clients
  • 6
    Offices across the country and in key US financial centers

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