Bank Capital Rules: Impact on Commercial Lending Structures and Documentation
Yield Protection, Increased Costs Provisions, LTV Requirements, Transfer Restrictions, Purpose Clauses, HVCRE ADC
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will cover recent changes to the U.S. bank capital rules and the impact on the commercial lending landscape. The panel will discuss how lenders may change loan structures and loan documentation and provisions to meet these requirements.
- Overview of U.S. capital rules
- Capital ratios
- Leverage ratios
- Liquidity ratios
- Proposed asset categories
- Impact on the commercial lending landscape
- Overview of HVCRE regulation
- LTV ratio and how it is calculated; borrower's equity, the 15 percent rule
- Loan structuring issues--addressing HVCRE issues in your loan documents
The panel will review these and other key issues:
- How will changes to the U.S. capital rules impact the commercial lending landscape?
- What loan documentation provisions are of critical concern for lenders, and where is there room for negotiation?
- How can HVCRE ADC loans be structured to avoid or minimize additional capital retention requirements?
Luigi L. De Ghenghi
Davis Polk & Wardwell
Mr. De Ghenghi focuses on bank regulatory advice, including Dodd-Frank Act implementation, M&A and capital markets... | Read More
Mr. De Ghenghi focuses on bank regulatory advice, including Dodd-Frank Act implementation, M&A and capital markets transactions for banks and other financial institutions. He advises banks and financial institutions on corporate governance and compliance matters, bank insolvency issues, government investigations and enforcement actions, cross-border collateral transactions, clearance and settlement systems.Close
Michael J. Weiss
Mr. Weiss’ practice includes the representation of owners, developers, equity investors, insurance companies,... | Read More
Mr. Weiss’ practice includes the representation of owners, developers, equity investors, insurance companies, private equity funds and other domestic and foreign financial institutions in complex commercial acquisitions, sales, financings and co-investment transactions throughout the U.S. over a variety of asset classes including gaming, hotels, resorts, office, multi-family and mixed-use projects. He has significant experience with multiple types of financings including permanent, construction, mezzanine and the use of historic tax credits and has a particular focus on high volatility commercial real estate compliance. In addition, Mr. Weiss has represented clients of the firm with respect to commercial office and retail leases on both the landlord and tenant sides.Close