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Selected Issues in Domestic Tax-Exempt Leasing Transactions
Lease investors have been participating in cross-border transactions for a wide variety of municipal facilities for several years. Assets have included water and sewer systems, electric and gas distribution systems, rail rolling stock and infrastructure, and convention centers. Investors have also been participating in transactions involving U.S. state and local government entities for several years. However, the preponderance of the U.S. transactions closed to date have involved rolling stock or transit facilities.
Although the tax law governing both cross-border transactions and U.S. state and local government transactions is the same and the structures used (most commonly sale leaseback followed by a service contract with most rent payment obligations economically defeased, and potential purchase option exercise provided for) are similar, the U.S. market has not yet grown to encompass the breadth of asset types seen in the foreign market. Many considerations interact to make U.S. state and local transactions difficult to do despite their clear economic attractions. While some of these factors are common to all transactions with governments and government-controlled entities, many of them are particular to U.S. state and local government entities. The purpose of this article is to explore some of the issues surrounding U.S. state and local transactions.
The nature of U.S. state and local government in the context of a federal system creates issues which a leasing transaction must address. In contrast with jurisdictions outside of the United States, where local processes tend to be relatively uniform within a given country, there is a substantial variation in governmental processes which may apply to U.S. state and local transactions. State laws governing fundamental aspects of leasing transactions vary from state to state. Moreover, assets are often in the hands of special authorities that have unique rules. This variety of applicable law adds substantial complexity and uncertainty to the transaction process. In addition, tax exempt state and local financing provides competition for leasing and an additional layer of complication.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?