Who Is in the Chain of Liability for OFAC Noncompliance?
March 31, 2005
By now many of us have either heard or read several articles written about compliance with the Executive Order 13224, titled "Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism" (the "Executive Order"). Although the probability of leasing or selling to any "Persons Who Commit, Threaten to Commit, or Support Terrorism," is extremely low, the consensus among the real estate bar seems to be that it is better to comply with the Executive Order and protect yourself and your client rather than risk the stiff penalties and stigma that would follow by inadvertently violating it. It is apparent that the creation of a Landlord-Tenant relationship or a conveyance of a property interest would give rise to an obligation to comply with the Executive Order, thereby triggering all of the potential liability associated with violating it.
Selling the State's Zoning Exemption?
March 31, 2005
The Court of Appeals recently confronted a significant zoning issue: When, and on what terms, can the state or a state agency transfer to a private entity its exemption from local zoning restrictions? In <i>Matter of Crown Communication New York, Inc. v. Department of Transportation</i> (NYLJ 2/14/05, p. 19, col. 4), a divided court held that telecommunications towers erected on state land were immune from local zoning regulations even when the much of the space on the towers had been leased to private companies. The court's decision, however, raises as many questions as it resolves.
Around the Firms
March 30, 2005
Cozen O'Connor to Acquire Most of Fischbein Badillo's Lawyers
Lateral Partner Recruiting Effective Use Of Search Professionals
March 30, 2005
Cravath, Swaine & Moore, one of New York's elite law firms, recently hired its first lateral partner in over 60 years. While an exception at Cravath, hiring lateral partners has become an indispensable strategy for law firms in achieving important business objectives and in thriving in hotly competitive markets.
A Senior Secured Lender's Guide to the Risks Posed By Junior Secured Debt
February 24, 2005
In theory, a borrower's issuance of junior secured debt is a boon for its senior secured lender. The borrower obtains additional capital, and the claims of the junior lender against shared collateral, since "subordinated," don't diminish the senior lender's prospects for repayment. In practice, however, a senior secured lender should view proposed junior secured financing skeptically because the existence of such debt can become highly problematic for the senior lender. The key to protecting the senior lender lies in properly negotiating and documenting the intercreditor agreement with the junior lender to eliminate, or at least minimize, the myriad ways in which the junior lender's rights may, in practice, limit — or even trump — those of the senior lender.
News Briefs
February 24, 2005
Highlights of the latest franchising news from around the country.
The Leasing Hotline
February 24, 2005
Highlights of the latest commercial leasing cases from around the country.
