In August, the President signed into law the Small Business Reorganization Act (SBRA) of 2019 (it will become fully effective February 2020), which includes several meaningful changes for both business and consumer bankruptcies. Highlighted below are three of those changes. 1. SMALL BUSINESSES. The SBRA creates a new subchapter to Chapter 11, to help small...
Client AlertsCommercial & Public FinanceCongressional Bill Would Expand The Ability To Issue Bank Qualified Tax-Exempt Bonds
September 3, 2019
By Eugene G. Bernardo II and David M. DiSegna House Bill 3967, titled the “Municipal Bond Market Support Act of 2019”, was introduced by Alabama Representative Terri Sewell and New York Representative Tom Reed with the purpose of increasing the amount of tax-exempt bonds that may be issued as bank qualified obligations. According to their...
Client AlertsCommercial & Public FinanceIRS Provides Guidance On Current Refunding Of Bonds Issued Under Targeted Bond Programs
June 7, 2019
By Eugene G. Bernardo II and David M. DiSegna IRS Notice 2019-39 sets forth certain requirements for preserving the tax-exempt or tax-advantaged status of current refunding bonds that are issued to refinance bonds that were originally issued under targeted bond programs. From time to time, Congress has established these statutory programs to facilitate lower borrowing...
Client AlertsCommercial & Public FinanceIRS Private Letter Ruling Provides New Guidance On Calculating Economic Life of Certain Bond-Financed Assets
May 31, 2019
By Eugene G. Bernardo II or David M. DiSegna The IRS has released a Private Letter Ruling that approves a simplified method of calculating the remaining economic life of property financed with exempt facility bonds. Section 142 of the Internal Revenue Code (the “Code”) defines exempt facility bonds (which are tax-exempt under the Code) as bonds that...
Client AlertsCommercial & Public FinanceIRS Issues New Regulations Governing TEFRA Approvals of Tax-Exempt Private Activity Bonds
January 8, 2019
By Eugene G. Bernardo II or David M. DiSegna On December 31, 2018, the IRS issued new regulations governing public approval requirements for tax-exempt private activity bonds under 26 U.S.C. § 147(f), which were originally enacted as part of the Tax Equity and Fiscal Responsibility Act of 1982, or TEFRA. The regulations make several significant changes to...
Client AlertsCommercial & Public FinanceIRS Clarifies Its Stance on Tax-Exempt Advance Refundings After the Tax Cuts and Jobs Act
December 17, 2018
By Eugene G. Bernardo II and David M. DiSegna Section 13532 of the Tax Cuts and Jobs Act of 2017 (the “2017 Act”) eliminated the tax exemption for interest on advance refunding bonds (defined as bonds issued more than 90 days before the redemption of the bonds to be refunded). However, after the 2017 Act’s...
Client AlertsCommercial & Public FinanceSEC Adopts Amendments to Municipal Securities Disclosure Rule 15c2-12
August 28, 2018
By Eugene G. Bernardo II and David M. DiSegna Paragraph (b)(5) of Rule 15c2-12 (17 C.F.R. 240.15c2-12) prohibits a participating underwriter from purchasing or selling municipal securities in an offering unless it has reasonably determined that an issuer or obligated person of the municipal securities has undertaken in a continuing disclosure agreement to provide certain...
By Eugene G. Bernardo II No one can deny the U.S. Senate’s authority in the judicial nominating process. However, something terribly wrong has happened as that majestic body has aggrandized and distorted its role in excess of our founders’ intent. If the rule of law is to survive in its traditional form, the judicial confirmation...
Client AlertsCommercial & Public FinanceNewsNew SEC Rules for Municipal Advisors Take Effect July 1, 2014
June 9, 2014
By Eugene G. Bernardo II and Alexandra W. Pezzello Under rules adopted by the Securities and Exchange Commission (the “SEC”) last September that go into effect July 1, 2014, municipal advisors must now register with the SEC. The rules are the result of provisions in the Dodd-Frank Act and are intended to provide additional protections...
Client AlertsCommercial & Public FinanceNewsLessons to Learn from the Harrisburg SEC Fraud Charges
June 27, 2013
By Eugene G. Bernardo II and Alexandra W. Pezzello Recently, the Securities and Exchange Commission (the “SEC”) broke new ground when it charged Harrisburg, Pennsylvania (the “City”) with securities fraud in connection with material misstatements and omissions regarding the City’s financial condition. This represents the first time that statements outside of securities disclosures were the...
