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Taxpayer Suffers SILO (Pre-tax) Loss in Wells Fargo
Recently publicized budget cuts at the New York Metropolitan Transportation Authority (“MTA”) caused the closing of two subway lines and left thousands of New York City public-school children without the buses they usually take to school. Perhaps if Congress had not shut down SILOs in 2004, the MTA and many other major U.S. transit agencies would not be in such a financial bind. Thankfully, no one is asking the transits to disgorge the hundreds of millions of dollars of cash they raised doing LILOs and SILO sale-leaseback transactions on their railcars and buses. After all, their own regulator, the Federal Transit Administration, actively encouraged the transit agencies to engage in these “innovative financing transactions” (their name for SILOs). But that did not stop the IRS from litigating the tax benefits claimed by the banks and other corporations that provided the much-needed capital to the transit agencies in these transactions.
In Wells Fargo & Company v. United States, (Fed. Ct. Cl. No. 06-628T, Jan. 8, 2010), a court considered for the first time SILOs involving domestic municipal transit agency lessees. While one would have thought that the domestic and federally approved nature of the transactions would have some influence on the decision, they did not. The judge's decision and description of LILO and SILO transactions as “rotten to the core” reflect an unwelcome return to the result-oriented pro-government decision-making that has characterized most of the decided LILO/SILO cases.
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.
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.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
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.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.