As the New Year begins, we look ahead to new challenges and the opportunities they bring. 2015 quietly ushered in a new capital reserve rule for banks: a super capital charge for High Volatility Commercial Real Estate (HVCRE) loans. As the year closes, there are still many questions about this Rule and its effect.
“The Indiana entrepreneurial class has lost one of its greatest champions. Dave Millard touched all. I recall when he first became a lawyer. He was a small business wunderkind. He focused like a laser on the peculiar legal needs of struggling upstarts. When the tech revolution hit Indiana in the ‘90s, he led it. He taught us that the success of Indiana business depended on its professional class joining ranks and moving up toward the front. He took us there like a field marshal would. He encouraged. He prodded. He helped. When necessary, he put it over the goal-line himself — but not just for himself.
“I do not know when the man slept, but, deservedly, he sleeps now. May he rest in peace. It is left to us to fill the ranks and soldier on — not just for ourselves.”
The SEC adopted final rules, effective April 27, 2016, known as “Regulation Crowdfunding”, which greatly liberalize the manner by which companies privately raise money in small increments from a large number of investors, using the Internet. Regulation Crowdfunding also creates a regulatory framework for the intermediaries — broker-dealers and funding portals –which will facilitate the online transactions.
We are pleased to announce that Densborn Blachly, LLP is again named a “Best Law Firm” by U.S. News & World Report and Best Lawyers. Best Law Firms are chosen for persistently impressive ratings by clients and peers as to the quality of their work, their professionalism and their integrity.
The Indiana Court of Appeals recently re-affirmed that the “first in time” rule determines priority between a mortgage and a mechanic’s lien on the same commercial property. Wells Fargo Bank, N.A. v. Rieth-Riley Construction Co., Inc. However, the mechanic’s lien holder continues to have the right to sell and remove the improvement it constructed.
The SEC recently adopted final rules amending Regulation A to permit eligible private (i.e., non-SEC-reporting) companies to conduct public securities offerings of up to $50 million in a 12-month period without Securities Act registration. The amendment, known as “Regulation A+”, was mandated by the Jumpstart Our Business Startups Act (the “JOBS Act”) and takes effect on June 19, 2015. Its aim is to promote small company capital formation by increasing the maximum amount which may be raised under Regulation A (from $5 million to $50 million), and by streamlining reporting and disclosure requirements.
In December 2014, the National Labor Relations Board (“NLRB”) issued what many call the “Quickie Election” Rule or “Ambush Election” Rule. In short, this new rule will decrease the period of time between a union election petition and the election itself from around forty-two (42) days to as few as fourteen (14) days. The rule is set to take effect today (April 14, 2015).
On May 6, 2015, our own John Fleming will be speaking on handling third party relationships in asset based loan transactions. It’s an all digital event, so we encourage everyone to attend. Should be an interesting talk on an interesting topic. Please see the marketing publication for more details.
Canada recently adopted a new Anti-Spam Law (CASL), which will impact U.S.-based businesses that send electronic messages to recipients in Canada for commercial or promotional purposes. CASL went into effect on July 1, 2014. Unlike the general rule in the U.S., where a sender is free to send an unsolicited email as long as the recipient may “unsubscribe,” now, in Canada, the general rule is that a recipient must proactively “opt-in” prior to the message being sent. Failing to meet the new requirements of CASL can result in a fine of up to $1 million for individuals and $10 million for entities.
Densborn Blachly is privileged to represent Indiana entrepreneurs who make, market and sell uniquely Hoosier products. A recent article by The Indiana Lawyer has profiled the successes Indiana business owners have had restoring vintage Hoosier brands. They have caused a resurgence in their retro products by capitalizing on trademarked brands that, while disappearing for a time from the shelves, were so well-established that they did not lose their cachet.