Blockchain and Financial Services Blog

So Many Adages So Little Time

The old adage “no harm no foul” applies to tort litigation unless there is a statute or contract that supplies liquidated damages. There is also the one about those “who do not learn from history are doomed to repeat it.” And then, there is the one about the return of a “bad penny.” Far too many idioms are available to describe the case at hand, which is clear evidence that somebody acted foolishly. Read More ›

When a Lender Must File and Send a Form 1099-C to Report Debt Forgiveness

Over the years, I have often addressed questions related to IRS Form 1099-C titled Cancellation of Debt for multiple lender clients. Sophisticated borrower’s counsel also consider possible tax issues as they negotiate the workout of defaulted loans. Read More ›

Small Banks and FinTech: an Opportunity?

Earlier this year BB&T and SunTrust announced a merger that if completed will create the sixth largest bank in the United States.[1] The press release announcing that merger includes the assertion that “Enhanced scale and financial strength will accelerate investment in transformative technology to embrace disruption . . ..” Read More ›

HR 171: Kentucky’s First Step Towards a Sustainable and Innovative Blockchain Market

For anyone who has been paying attention to the recent cryptocurrency craze globally and the growing industry buzz around its underlying technology, it is apparent that blockchain technologies may become the future: the future of online transactions, securing data, supply chains, internal operations and many more. Read More ›

Admit and Legislators Acknowledge That Real Estate Professionals Are Human and Need Protection From Harmless Errors

Ohio and other states where Frost Brown Todd has offices have long had witness and/or notary requirements for the execution of mortgages. Ohio Revised Code Section 5301.01 provides that a “mortgage . . . shall be signed by the . . . mortgagor. . . . The signing shall be acknowledged by the . . . mortgagor . . . before a . . . notary public . . . who shall certify the acknowledgment and subscribe [his or her] name to the certificate of the acknowledgment.” Bankruptcy trustees often try to use their “strong arm” powers[1] to defeat recorded mortgages in order to remove the lien from property of the bankruptcy estate, if the recorded mortgage was defectively executed under state law (in the alternative, the bankruptcy trustee can preserve the lien for the benefit of the bankruptcy estate).

[1]   Bankruptcy trustees so-called strong arm powers include their avoidance powers: the right to avoid competing parties’ interests by acting as if the trustee was a judicial lien creditor, an execution creditor, or a bona fide purchaser. See 11 U.S.C. Section 544. A Chapter 11 Debtor-in-possession can also exercise the strong arm powers. Read More ›

Two offerings – one token: Simultaneous Rule 506(c) and Reg S offerings of security tokens

While the ICO market weathers a frigid crypto winter and awaits further regulatory clarity, many issuers have conceded that their digital asset is a “security” and are proceeding under available exemptions from registration under U.S. securities laws. Read More ›

Dormancy and Revival: Long-Term Judgment Collection in Ohio

The fortunes of those who owe you money can vary over the years. This blog post explores how Ohio judgment creditors can capture their share of a judgment debtor’s improving financial situation. Read More ›

SPNB Charters for FinTech Companies: A Primer

The number of tech companies offering alternatives to traditional banks has increased severalfold in recent years, piquing the attention of state and federal regulators.  For FinTech companies engaged in certain aspects of the “business of banking,” a special purpose national bank (SPNB) charter may be one avenue for ensuring continued compliance with applicable regulations. Read More ›

SPNB Charters for FinTech Companies Will Impact Your Litigation Work

Experienced counsel who regularly litigate for or against federally chartered and regulated financial institutions appreciate the differences that apply when a federally chartered and regulated financial institution is the plaintiff or defendant. All businesses maintain books and records needed to operate the business and meet the universally applicable reporting obligations (taxes and perhaps audited financial statements). Federally chartered and regulated financial institutions also retain records required to meet regulators’ requirements of all types including safety and soundness, specific nondiscrimination rules[1], etc. The existence of these additional documents impacts both sides of the document production work (requesting and producing).

[1]   See, for example, the Community Reinvestment Act (12 U.S.C. Section 2901 et seq.) and laws against redlining. Unique information must be acquired, manipulated and retained to meet these financial industry specific rules. Read More ›

When the Dispatcher Must Stop the Truck: A Collection Lawyer’s Duty to Stop the Work of Others That She Caused

Collection lawyers know that sometimes their efforts, including litigation, are temporarily halted. Occasionally, the client directs the delay. On other occasions, the defendant / borrower unilaterally grants itself a delay. The classic borrower caused delay is the automatic stay that is imposed on collection counsel when a borrower files bankruptcy. 11 U.S.C. Section 362. Read More ›

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Attorney Spotlight

William T. Repasky practices with the Litigation Department at Frost Brown Todd. He focuses on lending and commercial services; banking litigation and financial institutions.

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