Pitfalls and Issues in Financing Equipment Leases with Virginia Localities

Community banks are in one of the most competitive lending markets in recent memory. When a well-capitalized developer or business brings its financing needs to the market, there are usually several banks competing for the opportunity. The financing needs of localities in Virginia are often overlooked as an opportunity for community banks.

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Department of Health and Human Services Increases Pace of HIPAA Enforcement Penalties

It is only August, but already this year more than $20.4 million dollars have been exacted in penalties against providers under the Health Insurance Portability and Accountability Act. This amount surpasses the previous annual record of $7.9 million set in 2014 – and it is just August.

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U.S. Supreme Court and 4th Circuit Each Rules for Creditors in Recent Notable Opinions

This month we report on two very recent court decisions that are noteworthy for creditors. In the first decision, the U.S. Supreme Court defined “actual fraud” in a way that allows a creditor’s claim against the recipient of a fraudulent transfer to be declared nondischargeable in bankruptcy. In the second decision, the federal Fourth Circuit Court of Appeals clarified that a Chapter 13 debtor’s right to “cure” his mortgage default doesn’t mean that he gets to reinstate a pre-default interest rate.

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Bank With U.C.C. Security Interest In Deposit Account v. Garnishment Creditor: Who Has Priority?

In a commercial loan transaction, a bank is able to (and often does) obtain a perfected Uniform Commercial Code security interest in a deposit account maintained by its borrower at the bank. A bank that has obtained such an interest may not think to worry about what would happen if it receives a garnishment summons from another creditor of that borrower. In a recent case, however, a federal court ruled that a Garnishment Creditor trumped the bank’s security interest in its borrower’s deposit account because the bank failed to declare the borrower’s loan in default and take affirmative steps to enforce its security interest before it received the garnishment summons.

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