Basel III Capital Retention Requirements: Impact on Loan Structures and Loan Documentation

Structuring Yield Protection and Increased Costs Provisions, Transfer Restrictions, Purpose Clauses, HVCRE Loans, and More

Recording of a 90-minute CLE webinar with Q&A

Conducted on Thursday, May 4, 2017
Recorded event now available

This CLE webinar will discuss current Basel III standards and how they have impacted the commercial lending landscape. The program will look at the impact of the standards on terms and conditions of loan structures and loan documentation provisions that have been changed by lenders to meet Basel III standards.


Basel III standards have resulted in an increase in the cost of borrowing as banks are required to retain more capital and meet liquidity and stable funding ratios with respect to certain loan portfolios.

Many provisions of loan documents are more critical to lenders and as the standards evolve, so do these loan provisions. Moreover, loans can be structured so as to avoid being subject to Basel III standards or at least minimize risks to lenders. This further impacts the terms of the loan documents.

Distinct requirements for high volatility commercial real estate (HVCRE) increase risk weighting for certain commercial real estate loans which, in turn, requires lenders to retain more capital. To avoid HVCRE higher risk weightings and capital retention requirements, loans must meet certain loan to value ratios and borrowers are required to invest and maintain a certain amount of equity.

Listens as our authoritative panel of finance attorneys analyzes Basel III capital retention requirements, the impact on the commercial lending environment, and how lenders have responded to Basel III in terms of loan structures and loan documentation.


  1. Overview of Basel III requirements
    1. Leverage ratios
    2. Liquidity ratios
    3. Impact on the commercial lending landscape
  2. Loan documentation for non-real estate loans
    1. Yield protection provisions and increased costs clauses
    2. Transfer restrictions
    3. Purpose clauses (liquidity facility or not)
  3. Overview of HVCRE regulation
    1. Implications of avoiding HVCRE
      1. Applicable LTV ratio and how it is calculated
      2. Borrower’s equity. The 15% rule
    2. Loan structuring issues
    3. Addressing HVCRE issues in your loan documents


The panel will review these and other key issues:

  • How have the Basel III capital retention requirements impacted the commercial lending landscape?
  • What loan documentation provisions are of critical concern for lenders due to Basel III, and where is there room for negotiation?
  • How can HVCRE loans be structured to avoid or minimize additional capital retention requirements?


Robert J. (Bob) Graves, Partner
Jones Day, Chicago

Mr. Graves represents lenders and borrowers in a wide variety of commercial financial transactions and has structured, negotiated, and documented scores of senior debt financing arrangements of all types, including secured and unsecured single bank and syndicated credit agreements, multicurrency financing facilities, and acquisition financings. A significant portion of his practice focuses on workouts and restructurings of troubled credits, with particular emphasis on debtor-in-possession and exit financings. He co-chairs his firm's Banking & Finance Practice. He has written a number of articles and spoken at numerous professional conferences and seminars on commercial finance, enterprise risk management, and banking regulation and compliance.

Ralph F. (Chip) MacDonald, III, Partner
Jones Day, Atlanta

Mr. MacDonald's practice emphasizes securities, mergers and acquisitions, corporate governance, financial institutions (including REITs, investment managers, and broker-dealers), and financial products. He is a frequent speaker and author on matters related to financial and investment services and products.

Camden W. Williams, Esq.
Jones Day, Atlanta

Mr. Williams advises banks and other financial institutions on regulatory, transactional and compliance matters. He has extensive experience advising domestic and international financial institutions on regulatory reform issues relating to implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the Volcker Rule and the enhanced supervision and prudential standards.


CLE On-Demand - Streaming Video

Includes recorded streaming video of full program plus PDF handouts.

On-demand is the only recorded format recognized for CLE credits in DE, IN, KS, LA, MS, NC, OH, OK, SC, TN, VA, WI.

AK, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN*, KS, KY, LA, ME, MN, MO, MT, NC, ND, NH**, NJ, NM, NV, NY, OH*, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)

*Only available for attorneys admitted for more than two years. For OH CLE credits, only programs recorded within the current calendar year are eligible - contact the CLE department for verification.

**NH attendees must self-determine if a program is eligible for credit and self-report their attendance.

CLE On-Demand Video $297.00

How does this work?

Recorded Event

Includes full event recording plus handouts.

Strafford is an approved provider and self-study CLE credit is available in most states.

AK, AZ, CA, CO, CT, FL, GA, HI, IA, ID, IL, KY, ME, MN, MO, MT, ND, NJ, NM, NY, OR, PA, TN, TX, UT, VT, WA, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)

Strafford will process CLE credit for one person on each recording.

Additional copies of a recording can be purchased at a discount. Please call Strafford Customer Service toll-free at 1-800-926-7926 ext 10 or email to place your order.

Recorded Webinar Download $297.00

How does this work?

Recorded Audio Download (MP3) $297.00

How does this work?


Strafford webinars offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

or call 1-800-926-7926

CLE Credits

Many states grant CLE credits for on-demand streaming audio programs and recorded events. Our programs are pre-approved in many states. Refer to our state CLE map for state-specific information.

or call 1-800-926-7926

Customer Reviews

I found it interesting to hear the differences in jurisdictions' treatment of conflicts issues.

Michelle Blakemore

County of San Bernardino

Strafford's program was well organized and provided a good level of depth.

Alex Schimel

Bilzin Sumberg

The interactive questions at the end added value to the educational topic discussed during the presentation.

Ralph H. Heninger

Heninger & Heninger

Strafford’s program was fast-paced, full of information and easy to follow.

Kathleen Duggan

Ropers, Majeski, Kohn & Bentley

The speakers were very knowledgeable about the area and you could tell they cared. It was nice to call in and be able to speak to them live.

Shari J. Reich

Kenney Shelton Liptak Nowak

or call 1-800-926-7926

Banking & Finance Law Advisory Board

Irving C. Apar


Thompson Hine

Mark N. Berman

Adjunct Professor

Northeastern University

Willa Cohen Bruckner


Alston & Bird

Lawrence Kaplan

Of Counsel

Paul Hastings

Kevin Petrasic


White & Case

Laura D. Richman


Mayer Brown

Robert M. Stern


Orrick Herrington & Sutcliffe

Andrew Stutzman


Stradley Ronon Stevens & Young

or call 1-800-926-7926

Our Guarantee

Strafford webinars are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10. Complaints regarding this program can be submitted via the course evaluation found in the “Thank you” e-mail at the end of the course.