Business Conduct Standards For Swap Dealers Dealing With State and Local Governmental Swap Counterparties
Pursuant to authority of the Dodd‐Frank Wall Street Reform and Consumer Protection Act (“Dodd‐Frank”), which includes amendments to the Commodity Exchange Act (the “CEA”) regarding over‐the‐counter swaps, regulations (the “Regulations”) were published by the Commodity Futures Trading Commission (the “CFTC”), effective on October 17, 2012, which regulate the business conduct of swap dealers with counterparties (the “counterparties”), including swap dealers engaged in swap transactions with state and local governmental counterparties (each termed a “Special Entity” in the Regulations). The CFTC made clear that the new “business conduct standards” will not apply to unexpired swaps executed before the effective date, but emphasized that a “material amendment” (which is not defined in the Regulations) to an existing swap may cause it to be treated as a new swap and subject to these Regulations. For Special Entities intending to engage in new swap activity after the October 17, 2012 effective date, certain of the requirements imposed on swap dealers will be met if the Special Entities agree to provide certain written representations to the swap dealer. It is presumed that swap dealers are refining the various representations, and mechanics for obtaining such representations, including amendment of existing ISDA master documentation. ISDA also is separately working on a project for standardized representations to be elected on an online system, as described below.
Also of Interest
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This issue of the Hawkins Advisory contains information of specific interest to single-family housing bond issuers regarding Average Area and Nationwide Purchase Price Safe Harbor Limits.
- Annual Qualified Mortgage Information
This edition of the Hawkins Advisory deals with qualified mortgage bond information report and the qualified veterans’ mortgage bond information report.
- Municipal Market Regulatory Update
This Hawkins Advisory describes the proposed amendments to Rule 15c2-12 and provides a summary and analysis of SEC municipal enforcement actions over the last year.
- Hawkins Assists City and County of San Francisco with Financing of 55-Story Residential Building
In December 2016, Hawkins served as disclosure counsel to the City and County of San Francisco in connection with its issuance of $240 million Variable Rate Multifamily Housing Revenue Bonds (Transbay Block 8 Tower) issued on behalf of an affiliate of the developer, Related Companies. The bonds will finance a portion of the cost of a new $600 million 55-story tower and surrounding buildings in downtown San Francisco.