Finanzas

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In the News

Haynes and Boone in Law360: Haynes and Boone Adds 3 Finance Pros in NY, Dallas

Haynes and Boone, LLP said Monday the firm has fortified its finance practice group in its New York and Dallas offices with the addition of three K&L Gates LLP attorneys who have experience in banking and energy-related commodities finance. >>

Three-lawyer Finance Team Adds Commercial Banking Capabilities to New York and Dallas Offices

NEW YORK / DALLAS – Haynes and Boone, LLP is expanding its sophisticated finance capabilities with the addition of a group of three lawyers led by a senior partner, Steven H. Epstein - a highly regarded practitioner with extensive experience representing commercial banks in complex financings, including energy-related commodities finance. >>

Eduardo Aguirre in Latin Lawyer: Haynes and Boone Hires Former US Ex-Im Vice-Chairman

Eduardo Aguirre joined the firm on 14 January as a non-legal senior adviser in Houston, where he will also assist with inbound investment, banking and finance, energy and immigration matters. >>



Recent Publications

ISDA Section 2(a)(iii): Problems and Solutions

In recent years, one clause of the ISDA Master Agreement has been the source of a great deal of consternation among derivatives lawyers: the condition precedent set forth in Section 2(a)(iii), which purports to suspend a party’s payment obligations in the event of a continuing default by the other party. >>

American Bankers Association Bank Compliance Magazine Guest Article: Responding to Examination Findings

Amid the industry's efforts to emerge from the global financial crisis, banks now encounter a new era in examination management. This era is marked by continuing regulatory uncertainty, economic instability, and heightened expectations from prudential regulators. >>

CFTC Loosens Requirements for Swaps for Utility Special Entities

On March 21, 2014, the Division of Swap Dealer and Intermediary Oversight (“Division”) of the CFTC issued a no-action relief letter (the “2014 Letter”), to temporarily allow entities to deal in utility operations-related swaps, as defined in the 2014 Letter, without counting such swaps towards the “sub-limit” threshold for swap dealer registration with regard to such swaps. >>

Final FFIEC Guidance - "Social Media: Consumer Compliance Risk Management Guidance"

On December 17, 2013, the Federal Financial Institutions Examination Council (the “FFIEC”) issued the Social Media: Consumer Compliance Risk Management Guidance for financial institutions. >>




Bank of America Subscription Financings

Our Client
Bank of America, as agent or sole lender on subscription financings

The Opportunity
Haynes and Boone was involved in the early development of subscription lines as a product, and has represented major institutions in these financings since 1988.  Ten years ago, we helped Bank of America enter this space, and it is now the dominant institution on the lending/agent side.

Over the years, an unresolved ERISA issue had been hindering the efficient closing and operation of these deals.  We took the conservative position that the ERISA issue did, in fact, exist, and that the best approach was to obtain individual exemptions for each deal from the ERISA Prohibited Transaction rules.  Each deal involved an application for exemption to the Department of Labor, a process that often took several months.

Counsel for other banks making these loans took a less conservative approach, which we believed didn’t adequately address the risks for the lenders.

The Haynes and Boone Solution
Largely because of our risk-management approach on behalf of our client, Haynes and Boone had strong, effective relationships with the professionals at the Department of Labor.  As the volume of our subscription financings for Bank of America increased, Haynes and Boone lawyers determined that we should approach the DOL for a “global exemption” to the ERISA Prohibited Transaction rules, which would apply to any like-structured deal in which Bank of America was the agent or sole lender.

We worked for more than a year to draft language for a global exemption, respond to DOL inquiries, meet with its representatives, and ultimately obtain the global exemption we were seeking.  The DOL granted the exemption in February 2004, but made its effective date retroactive to January 2003.

The Outcome
The global exemption gave Bank of America a competitive edge, saving them considerable time and money on each subscription financing.  At the time, they were the only bank to have a global exemption, and the process confirmed to the broad market that our more conservative risk assessment of the ERISA issue was the accurate one.

Bank of America continues to hold its position as market leader in subscription financing, and our initiative and practical analysis that went against the risk-taking grain of other banks and their law firms turned out to be the most innovative and exactly the right approach.

For more information about this case study, please contact Tim Powers at +1 214.651.5610 or   or Ellen McGinnis at +1 202.654.4512 or  .