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.
- 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.
- Agribusiness Lending
- Asset-Based Lending
- Banking and Financial Services
- Commercial Lending
- Commercial Lending and Real Estate
- Derivative Transactions
- Ex-Im Bank Financing
- Lending to Private Equity Firms
- Letters of Credit/Bankers Acceptances
- Loan Syndications and Trading/Syndicated Credits
- Public and Institutional Banking & Finance
- Real Estate Investment Trusts (REITs)
- Senior Lending