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Description of the practice. We represent banks that provide letters of credit or liquidity facilities to enhance the credit of both tax-exempt and taxable bonds. We prepare the documents that provide (i) the credit enhancement, (ii) the repayment of the bank, and (iii) the security for the bank. We negotiate the legal opinions delivered to the bank by borrowers and deliver enforceability opinions on behalf of the bank. We coordinate with in-house counsel and the bank operational staff to provide timely delivery of the letter of credit and other bank documents. We can review the real estate matters pertinent to the transaction on behalf of the bank, or supervise local counsel undertaking such matters on behalf of the bank, as necessary. In addition, we assist the bank with post-closing compliance matters.
We understand the bond documents. Reimbursement agreements and bank security documents must be drafted to coordinate with bond trust indentures, loan agreements, and security documents and must conform in some cases to the federal tax laws applicable to tax-exempt bonds. Peck Shaffer’s broad experience as bond and underwriter’s counsel enables us to understand the bond and security documents and how they impact the bank. We draft bank documents that synchronize with the bond documents and protect the interests of the bank.
We are involved in a variety of types of financings. We are involved in the credit enhancement of bonds issued by governmental issuers for governmental purposes as well as bonds issued by conduit issuers for the benefit of private parties. We are involved in general obligation and revenue issues by governmental issuers, governmental lease-purchase financings, tax allocation bonds, bonds for the benefit of 501(c)(3) organizations, and bonds issued by for profit entities. We represent banks in both tax-exempt and taxable bond issues. We also represent banks in connection with the documentation of lines of credit. We understand the special tax, securities and accounting rules applicable to governments and charitable organizations and therefore can help the bank to craft meaningful and appropriate financial covenants.
We represent both domestic and foreign banks. Our clients include both domestic banks such as Fifth Third Bank, U.S. Bank National Association, Wachovia Bank, National Association, J.P. Morgan Chase Bank, N.A., KeyBank National Association, and foreign banks such as Allied Irish Banks, p.l.c.