Some Old Lessons For New Enterprises
e-Commerce firms have aggressively marketed themselves as the new kids on the block. They eagerly discard old ways of doing business, confident that their way of doing business ' online ' is better. It's an e-commerce article of faith that everyone can work more efficiently if he or she would only eliminate outdated practices that don't take advantage of the conveniences available online.<br>But maybe some supposedly 'old' laws and ways of doing business have survived ' for decades and centuries ' for reasons other than that the Internet had not yet been invented. Sometimes, the tried and true is sufficient for what's needed. The old way may work more reliably, and perhaps even better than, the new path offered by e-commerce.
Synthetic Securitization in China
China recently launched two offerings of asset backed securities ('ABS') in its interbank market after several years of preparation and planning. On Dec. 9, 2005, China Construction Bank ('CCB') issued 2.9 billion yuan ($360 million) of debt securities in China's first residential mortgage-backed securitization, and on Dec. 12, 2005, China Development Bank ('CDB') issued 4.2 billion yuan ($500 million) of debt securities backed by unsecured loans from the telecommunications, energy, utility, and transportation industries. To facilitate ABS offerings, China's regulatory agencies have promulgated rules to govern ABS issuances, including the Administrative Rules for Pilot Securitization of Credit Assets, promulgated by the People's Bank of China ('PBOC') and China Banking Regulatory Commission ('CBRC') on April 20, 2005, the Rules for the Information Disclosure of Asset-Backed Securities, promulgated by the PBOC on June 13, 2005, and Rules for Regulating Financial Institution's Securitization, promulgated by the CBRC on Dec. 1, 2005.
Leasing Equipment in Latin American Countries
American lessors continue to look for ways to expand their business, often turning to new products or structures. Savvy lenders also look to take their products to new markets, which are increasingly global. However, leasing equipment outside of the United States can present a number of issues for the U.S. lessor and its counsel. Preparation and an understanding of the foreign country's laws relating to equipment leasing are keys to success.
Cyber Rentals
The Internet has profoundly changed the way real-estate rental transactions are executed, mostly for the better. Besides putting significant amounts of rental information into the hands of potential tenants and allowing virtual tours of available rental properties, the Internet allows prospective renters and landlords to submit rental applications and negotiate contracts online. Properly executed, an Internet real-estate rental application may save time and money for the potential tenant and landlord. Improperly executed, such an application may result in legal difficulties, including unenforceable contracts and negligence claims.
Vertical and Horizontal Transportation: When Is Convenience a Bad Thing?
To the typical tenant, being located near or adjacent to vertical and horizontal transportation, which may include elevators, escalators, stairways, people movers, and similar transportation, would be a beneficial situation due to the customer traffic that such devices provide. However, several issues or potential issues arise when addressing the presence of vertical and horizontal transportation within the common areas of an enclosed regional shopping center. In particular, the following issues should be negotiated: accessibility and visibility; the right to relocate or close such transportation; and the right to substitute various means of vertical and horizontal transportation systems. This two-part article addresses these issues and provides sample model clauses for vertical and horizontal transportation.
Criteria for Financeability
Among the many real estate assets that may be financed are ground or net leases. Despite many changes in the area of real estate finance over the past number of years, the legal criteria for determining financeability of a tenant's leasehold estate remain constant. Nevertheless, it is useful for the real estate practitioner to periodically take inventory of the standards. Certainty of leasehold financeability is essential, not only to any ground lessee or tenant that wants to finance the cost of constructing its leasehold improvements, but also to any tenant that decides to finance a portfolio of leasehold properties or whose corporate lender requires a collateral assignment of the tenant's interest in its leasehold estates as part of the security for a broader, corporate financing facility. The following sets forth fundamental issues to be considered in determining the financeability of a significant lease.
Racial Profiling: Lessons Retailers and Shopping Malls Should Learn from the Law Enforcement Experience
The law enforcement community was unprepared for the onslaught of allegations of racial profiling because it never anticipated it would become an issue with massive legal and administrative consequences. Because the law enforcement community was generally unprepared, the result included costly litigation and onerous settlements, as well as a decrease in public confidence. Many of these consequences may have been avoided if the law enforcement community had initially recognized the issue and then prepared to address it.
