Bank Law Monitor

Bank Law Monitor

A Legal Blog for the Financial Services Industry

More COVID Relief in Sight as Congress Amends the Paycheck Protection Program

Posted in COVID-19

The “Consolidated Appropriations Act, 2021” (CAA), which includes provisions designed to mitigate the ongoing economic fallout of COVID-19, became law on December 27, 2020.  While most of the public’s attention is on other of  the CAA ’s benefits —like direct stimulus payments, deduction expansions and tax credit modifications—the CAA revises the Paycheck Protection Program and affects other SBA Section 7(a) loans.  Lenders and borrowers should be aware of these changes. Continue Reading

Oregon Governor Issues Executive Order Related to Foreclosure Moratorium

Posted in COVID-19, Foreclosure

On December 17, 2020, Governor Kate Brown issued an executive order related to Oregon’s foreclosure moratorium (HB 4204). Under Executive Order 20-67 (EO 20-67), Governor Brown determined that a state of emergency continues to exists in the State of Oregon as a result of COVID-19 and elected to continue her prior executive order (EO 20-37), which extended HB 4204’s foreclosure moratorium through December 31, 2020. Continue Reading

Oregon Presses Pause on Foreclosures, Payment Defaults, and Evictions

Posted in Banking, Commercial Real Estate, Regulatory Developments, Trending News

In an effort to provide relief to homeowners, businesses, landlords, and tenants affected by COVID-19, Governor Brown signed two bills that impose significant limitations on lenders and landlords. Under HB 4204, lenders cannot foreclose on loans secured by real estate in Oregon and must defer payments for borrowers on those loans who are unable to pay because of loss of income due to COVID-19. HB 4204 may provide some relief to landlords that, under HB 4213, are prohibited from taking specified eviction and termination actions based on tenants’ nonpayment. Lenders and landlords should be aware of the important requirements and limitations created by the new bills and how these bills affect their current practices. Continue Reading

At Long Last, FinCEN Offers Much Awaited Guidance Regarding BSA Due Diligence Requirements for Hemp Businesses

Posted in Banking, Cannabis, Trending News

Ever since Congress passed the 2018 Farm Bill and hemp was declassified under federal law as a Schedule I controlled substance, financial institutions have struggled with whether and how to bank the hemp industry. Many bankers simply feared that the distinction between legal hemp (which cannot contain more than 0.3 percent THC on a dry-weight basis) and illegal marijuana placed too high a burden (and cost) on banks to police compliance and too much risk without sufficient reward to enter the fray. Those fears might soon fade thanks to recent materials published by the regulators with the Financial Crimes Enforcement Network (FinCEN). Continue Reading