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Climate change litigation appears to have emerged as a forceful driver behind the transition to a more sustainable world. In this article some examples of this emerging trend are discussed: (i) Urgenda v Netherlands, (ii) Klimaseniorinnen Schweiz v Switzerland, (iii) Friends of the Earth v Shell, (iv) Friends of the Earth v ING, and (iv) Friends of the Earth v BNP Par ibas. [ABSTRACT FROM AUTHOR]

In this article, we examine the incentives for lenders to steer borrowers into piggyback loan structures to circumvent regulations requiring private mortgage insurance (PMI) for loans with loan‐to‐value ratios (LTV) above 80%. Our empirical analysis focuses on propensity score‐matched portfolios of piggyback and single‐lien loans having the same combined LTV based on a full set of observed risk characteristics. Our results confirm that mortgages originated with the piggyback structure have much lower ex post default rates and faster prepayment speeds than corresponding PMI loans. We also find a significant causal effect of interstate banking deregulation on the growth of piggybacks in these years, confirming that the ex post performance gap is primarily driven by lender steering on the supply side and not by borrower self‐selection. We then perform a number of tests to explore different origination and execution channels of mortgage steering. [ABSTRACT FROM AUTHOR]

We analyze a financially distressed owner-managed project. The main results of the model are: (1) borrower default is an endogenous response to the anticipated restructuring--foreclosure outcome; (2) the lender's restructuring-foreclosure decision depends critically on the interaction between project value and industry liquidity; and 3) the lender waits for the industry to recapitalize before selling assets obtained through foreclosure. Empirical analysis of a large sample of defaulted commercial real estate loans supports many of the model predictions, including restructuring--foreclosure outcomes that are consistent with endogenous borrower default and firesale discounts that vary depending on industry market conditions at the time of foreclosure. [ABSTRACT FROM AUTHOR]

In legal systems with expensive or ineffective contract enforcement, it is difficult to induce lenders to enforce debt contracts. If lenders do not enforce, borrowers will have incentives to misbehave. Lenders have incentives to enforce given bad news when debt is short-term and subject to runs caused by externalities across lenders. Lenders will not undo these externalities by negotiation. The required number of lenders increases with enforcement costs. A very high enforcement cost can exceed the ex ante incentive benefit of enforcement. Removing lenders' right to immediately enforce their debt with a "bail-in" can improve the ex ante incentives of borrowers. [ABSTRACT FROM AUTHOR]

On 1 January 2019, following a presidential order confirming its adoption by the Fifth Session of the Standing Committee of the 13th National People's Congress of the People's Republic of China (PRC), the Law of the People's Republic of China on Soil Pollution and Control 2019 (SPC) was introduced into law. Succinctly, the SPC was enacted to deal with the vast amount of soil pollution that currently exists in China. This article's central thesis is that, following a comparative analysis of the regulatory regimes in the USA and UK, the law creates environment-related risks for lenders. In particular, the article is concerned with the risk of lender liability, that is, where the lender itself is made directly liable for the costs of soil pollution remediation. In light of the USA and UK regimes, risk management advice is provided for obviating any prospective lender liability that may be forthcoming from the SPC. As with the regulations in other countries, it appears that the degree of 'control' that lenders exercise over their clients must be limited to mitigate the possible transference of any direct liability under the PRC's principles of property rights law. [ABSTRACT FROM AUTHOR]

The article studies how the prospect of future debt renegotiation affects the lender's security interests at the contracting date in a simple model of borrowing and lending with asymmetric information. The study of optimal contracts assumes a risk-neutral entrepreneur in need of capital to finance a risky investment project with the contract containing a bankruptcy clause that acts as a payment incentive for the entrepreneur. The author presents a model which uses "an extensive game of contract design and renegotiation."

This article focuses on the separate phases method of accounting for leveraged leases. Particular attention is given to the properties of the allocating rate and an algorithm for finding the allocating interest rate required by the separate phases method. The leveraged lease is a type of direct financing lease involving at least three parties: a lessee, a lender, and a lessor who is the equity participant. Table one of this article illustrates a typical series of leveraged lease cash flows. Also provided is an explanation of how the Financial Accounting Standards Board (FASB) proposes handling the income effects of the cash flows of the lessor's books.

This paper examines the effects of loan commitments on bank lending behavior in both deposit-funding and liability management environments. Assuming that the bank lends exclusively under commitments and that the number of commitments exercised is uncertain, the bank must choose its supply of commitments. Given this choice, the bank becomes a passive lender to commitment holders. Our focus on forward credit markets sheds new light on the private bankers' assertion that they do not directly determine their level of lending, but merely "accommodate" the credit needs of their customers. Similarly, the central banker's claimed inability to control monetary aggregates in the short-run becomes understandable in a new context. It is shown that the advent of liability management will reduce the volume of loan commitments and the expected size of the bank and of the banking system. It is also shown that increased uncertainty regarding borrower takedown behavior diminishes the volume of commitments, expected bank and banking system size. [ABSTRACT FROM AUTHOR]

The author comments on the extended lending, borrowing and service function proposals of the Hunt Commission proposals. The Hunt Commission proposals relate to extended lending, borrowing, and service functions for the principal financial intermediaries. It is explained that the result of these proposed changes would be a financial system in which many of the distinctions between financial institutions would be significantly reduced, if not eliminated. It is suggested that the benefits of the proposals can be separated into two parts.

The article focuses on the growth in liabilities of non-bank financial institutions, and considers the effect this growth will have on long-term economic development and on U.S. monetary policy-making, using Milton Friedman's report, "The Demand for Money: Some Theoretical and Empirical Results" as a guide. The author's experiments led him to conclude that current and permanent income velocities are related to changes in yields on non-bank intermediary liabilities and to disagree with Friedman's definition of money and his ideas about the influence of interest rates on the velocity and demand for money.

Claims against lenders by defaulting borrowers frequently sound in breach of contract, fraud, or breach of fiduciary duty. The author--a litigator--discusses contractual provisions to defeat such claims. He focuses on the drafting of key provisions in loan documents, such as merger and integrations clauses, waiver and modification clauses, damages clauses, and provisions negating fiduciary duty or other special relationships. He concludes with points to avoid when servicing a loan and protective measures during workout discussions. [ABSTRACT FROM AUTHOR]

Editor's Synopsis: Within the last three decades, there has been a surge in lender-liability claims against mortgage lenders. In response to this surge, many states have enacted credit-agreement statutes to protect these lenders from claims of oral modification of loan agreements. This Article covers the history and the rise of such state credit-agreement statutes and how courts have interpreted them. This Article focuses on the courts' inconsistent interpretations of whether equitable claims and defenses such as equitable estoppel, waiver, partial performance, and bad faith are available to borrowers. Additionally, this Article analyzes the Illinois Credit Agreements Act and how Illinois courts have interpreted it. Lastly, this Article covers the proposed ABA "Model Lender Liability Limitation Statute" and discusses its stance on equitable defenses. [ABSTRACT FROM AUTHOR]

Copyright of Revista E-mercatoria is the property of Universidad Externado de Colombia, Departamento de Derecho Comercial and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Internal Security is the property of Police Academy in Szczytno and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Indebtedness as a global phenomenon has attracted much attention both in public discourses and in academia in recent years. In Hungary, however, up to date social scientists have not paid considerable interest to studying debt. Drawing on long-term ethnographic fieldwork in rural northern Hungary, in this article I explore the financial portfolios of the poor in two settlements and their debt relations. I attempt to show how different forms of debt (formal and informal) are used, perceived, and valued; what kinds of different meanings are attached to them; and how they interrelate to each other. I will show the magisterial juggling of the poor with income scarcity, and the wizardry with which they make a living on twenty-two thousand forint (60 $) a month, the Hungarian equivalent of the “$2 a day” global poverty benchmark. I will attempt to shed light on the role of informal moneylending in this puzzling story. I will explore how the cash-poor invent new ways (by appropriating and adjusting established ones; among others, subprime lending) to generate regular income. Whilst comparing the practices of formal and informal financial institutions towards the poor, I argue that informal/'illegal' lenders fill the gap, the economic niche, left empty by formal/legal financial companies, to “bank the unbanked”. Through this process, however, old dependency structures are reconfigured, new patronclient ties are formed and community wealth is redistributed - to further impair the poorest of the poor. [ABSTRACT FROM AUTHOR]

This article discusses the theories of liability used in the United States against lenders which result in either the avoidance of debt owed to a lender and/or the affirmative recovery of damages from the lender. Applicable defences to lender liability claims are also discussed. [ABSTRACT FROM AUTHOR]

The purpose of this research is to develop a comprehensive theoretical framework for interpreting Shariah governance mechanism in Islamic financial institutions (IFIs). After reviewing existing theories that were used to explain the phenomenon of corporate governance, three most commonly used theories in the corporate governance and Shariah governance area namely agency theory, stewardship theory and stakeholder theory were used and integrated based on their interrelated concepts and their relationship with Shariah governance. The constructed theoretical framework includes five concepts, namely accountability, disclosure and transparency, competency, confidentiality and independency among the key functionaries in Shariah governance, which are perceived to be the principles of Shariah governance. This research is among the first attempts to build an integrated theoretical foundation for Shariah governance in IFIs and the developed theoretical framework can be used as the basis for interpretations and comparisons on the ideal versus practical situation of Shariah governance in IFIs. [ABSTRACT FROM AUTHOR]