Monthly Archives:' January 2014

Kennedy Sutherland Represents Non-Profit in New Markets Tax Credit Financing

Kennedy Sutherland LLP is pleased to announce the firm successfully represented ACCION Texas, Inc., a certified Community Development Financial Institution  which provides loans to small business owners who lack access to commercial credit and development services, in obtaining a $6.1 million New Markets Tax Credit loan to construct their new headquarters and a Lending and Learning Center in San Antonio, Texas. The funding will be used to build space for a variety of small business concepts and start-ups to develop, with the help of ACCION’s on-site business support staff.

ACCION Founding President & CEO Janie Barrera was most gratified.  “With our rapid growth, we have run out of space. Now we have funding in place to promptly build the entire campus as a single project. This is the boost we needed.  We are grateful to PeopleFund for awarding its NMTC to us and to Capital One for providing construction financing to allow us time to complete our Capital Campaign.  Now our goal will be to continue to raise funds under the Capital Campaign to quickly eliminate all of the construction debt so that we have a debt-free campus in as short a time period as possible.”

Read More: atxpressreleasev6

New Requirements Imposed on Texas Bank Advisory Directors

On September 1, 2013 a new statute took affect regarding Texas state bank advisory directors. The new law, part of recently passed legislation (H.B. 1664), amended the Texas Finance Code to impose new requirements on a bank’s ability to disclose confidential information about the bank or its customers to advisory directors of the bank. These new requirements include adopting board resolutions authorizing such disclosures, and requiring execution of confidentiality or non-disclosure agreements between the bank and the advisory directors.

Specifically, the new law requires the board of directors to adopt resolutions designating advisory directors as being officially connected to the bank. The resolutions should also describe the business purposes for which the disclosure of confidential information is being made. Advisory directors are also required to enter into non-disclosure agreements with the bank regarding receipt of confidential information in their capacity as advisory directors.

In light of this recent legislation, we recommend that state banks review their practices and procedures regarding disclosure of confidential information to advisory directors to ensure they comply with these new provisions of the Texas Finance Code.

If you have any questions concerning the new requirements for advisory directors of Texas banks or would like assistance in complying, please contact one of our attorneys.

These new requirements include adopting board resolutions authorizing such disclosures, and requiring execution of confidentiality or non-disclosure agreements between the bank and the advisory directors.

Specifically, the new law requires the board of directors to adopt resolutions designating advisory directors as being officially connected to the bank. The resolutions should also describe the business purposes for which the disclosure of confidential information is being made. Advisory directors are also required to enter into non-disclosure agreements with the bank regarding receipt of confidential information in their capacity as advisory directors.

In light of this recent legislation, we recommend that state banks review their practices and procedures regarding disclosure of confidential information to advisory directors to ensure they comply with these new provisions of the Texas Finance Code.

If you have any questions concerning the new requirements for advisory directors of Texas banks or would like assistance in complying, please contact one of our attorneys.

CFPB Revisit Qualified Mortgage Exemption?

According to Richard Cordray,The Consumer Financial Protection Bureau’s agency director, the CFPB could consider expanding exemptions for small lenders from its qualified mortgage rule after it goes into effect on Friday. Mr. Cordray asked for input from community bankers, credit unions, and other lenders to let the CFPB know if they “got the line right.”

According to the ABA, “Under the qualified mortgage rule finalized last year, lenders with less than $2 billion of assets that make 500 mortgages or fewer per year are exempt from certain parts of the QM rule, including the debt-to-income ratio requirement if they hold the mortgages in their portfolio. Cordray said that exemption covers more than 90% of small creditors in the market. But he said the CFPB is watching the situation carefully and asking for feedback from lenders.”

FDIC's List of Banks Examined for CRA Compliance

FDIC today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in October 2013. A consolidated list of all state nonmember banks whose evaluations have been made publicly available since July 1, 1990, including the rating for each bank, can be obtained from the FDIC’s Public Information Center at http://www.fdic.gov. A copy of an individual bank’s CRA evaluation is available directly from the bank, which is required by law to make the material available upon request, or from the FDIC’s Public Information Center.  More on 2014 CRA Evaluations