Regulatory Compliance, Licensing Requirements and Documentation Taking the guesswork out of legal compliance.
Regulatory Compliance, Licensing and Documentation
State and Federal Regulatory Compliance
Anthony Lamm is well-versed in business, corporate and commercial law. He applies a “Creditors’ Rights” perspective in structuring financial documents and business agreements. Lamm uses a pragmatic and strategic approach to assess the remedial provisions and selective legal terms that are emphasized in documentation. In doing so, we are diligent to ensure clients’ protection in the event of state department compliance audits or executive review.
Lamm Law, PC leverages transferrable skills and experience concerning regulatory issues, property rights, vehicle titling/registration and licensing requirements. Our clients trust in the comprehensive knowledge and expertise we deliver in regards to regulatory compliance management and secured business transactions.
- Dodd–Frank: This 2010 financial reform legislation was created in response to the 2008 financial crisis. The Dodd-Frank Wall Street Reform and Consumer Protection Act targets banks and mortgage lenders. In 2018, the Trump administration revised the Dodd-Frank act to ease some of its restrictions. Dodd-Frank, however, continues to hold significant governance over financial institutions with its regulatory compliance requirements.
- Federal Banking Law Preemption: Federal preemption rules can invalidate state laws that directly conflict with a corresponding United States federal law. The 2010 Dodd-Frank Act made revisions to preemption rules that have become a point of controversy. For example, the act prohibits use of federal banking law preemption in regards to non-banking branches owned by national banks.
- Uniform Deceptive Trade Practices Act (UDTPA)
- Usury: The federal government defers responsibility to individual states in this area. Most states determine their own usury laws, which prohibit lenders from setting excessively high rates of interest. These laws, which vary by state, set maximum thresholds for the accruement of interest on a loan.
- Code of Federal Regulations: One of the provisions under the Dodd-Frank Act established the Consumer Financial Protection Bureau. This organization is focused on enforcing the a series of consumer protection regulations known as the Code of Federal Regulations (CFR). Lamm Law, PC concentrates on Regulations B, M, and Z within the CFR.
- Regulation B: Also known as the Equal Credit Opportunity Act, Reg B is intended to reduce discrimination against individual borrowers. To comply with these regulatory requirements, lenders must ensure they are not demonstrating bias in any aspect of a credit transaction. Lenders are prohibited from basing judgement on age, gender, ethnicity, country of origin, or marital status.
- Regulation M: This section of the CFR focuses on consumer leasing and implements relative provisions under the Truth in Lending Act. In summary, Reg M defines necessary disclosures of lease terms to lessees of personal property.
- Regulation Z: The Truth In Lending Act is enforced through Reg Z of the CFR. This section also implements portions of the Competitive Equality Banking Act and the Financial Institutions Reform, Recovery and Enforcement Act. Reg Z contains rules for open-end credit, closed-end credit and mortgage transactions. This section also outlines the liabilities for lenders that fail to comply with these regulatory requirements.
Complex laws and regulations apply to banks and non-bank financial companies engaged in selling and leasing equipment and motor vehicles. Because licensure requirements vary by state, this area of regulatory compliance becomes a challenge for businesses that operate within multiple states. Federal regulations add further complications that require an expert eye to evaluate which requirements take priority.
Lamm Law, PC counsels clients to ensure that they have obtained the proper licensing and documentation. Our proactive strategy to risk management protects clients against any potential liabilities before issues arise. Lamm Law, PC focuses on licensing law and regulations that affect our clients’ primary business activities. This includes equipment leasing, motor vehicle sales finance, as well as goods and services installment acts.
The list below provides a brief overview on the various state licensing laws that apply to current Lamm Law, PC clients. Our mastery of regulatory compliance and state licensure is transferrable to any and all areas of the United States.
- California: State law requires consumer disclosures similar to those under the CFR’s rules for consumer loans and commercial transactions. This applies to lease financing of $500,000.00 or less.
- New Jersey: State laws require lessors that enter into three or more applicable leases per year be a licensed dealer.
- New York: Under NY Banking Law (Article 9), licensing is required for all business and commercial loans under $50,000. This applies to both banks in-state and any lenders that provide loans to NY residents.
- Pennsylvania: In 2014, an updated chapter in the state’s Consumer Credit Code replaced the PA Motor Vehicle Sales Finance (MVSF) Act. Significantly, this update clarified how CFR Reg Z relates to MVSF disclosure requirements. Chapter 62 outlines regulation requirements for licensing (application, renewal, etc.) and installment sale contracts.
If you seek legal counsel on state licensing laws that are not listed below, contact our office for a free consultation. Lamm Law, PC is dedicated to accommodate clients nation-wide with consistently effective and seamless legal solutions. Let us demonstrate how we can apply our expertise to your needs today.
- “Conducting Effective Leasing Transaction Interpretations” Monitor. Jan/Feb 2015 (pdf)
- “ECOA’s Reg. B: Does the Term “Applicant” Include Guarantors?” Newsline. May/June 2015 (pdf)
- “Dodd-Frank Act and Its Impact on Equipment Leasing.” September 2014 (pdf)
- “Credit Protection in Today’s Precarious Economy.” Monitor – Leasing & Financial Services. January 2003 (pdf)
- “Effect of Revised UCC Article 9 on the Small-Ticket Lessor.” Equipment Leasing Newsletter. December 2001 (pdf)
- “State Licensing Requirements” 2014 ELFA Legal Forum (pdf)
- “Truck and Transportation Financing” (pdf)
- “Basics of Multi-State Leasing and Finance” ELFA (pdf)
- “The Barbarians Are at the Gate: Factors to Distinguish Your Commercial Equipment Lease Agreement from a ’Consumer’ Transaction.” ELFA Legal Forum. Loews Don CeSar Hotel, St. Petersburg Beach. May 7-8, 2017
- “ECOA’s Reg. B” M&T Bank, NEFA Equipment Finance Summit. Hotel Monteleone, New Orleans. March 3, 2016 (pdf)
- “Regulation B, Equal Credit Opportunity Act – Recent Developments.” Fulton Bank. Buffalo, NY. November 6, 2015 (pdf)
- “Equipment Credit Opportunity Act (Regulation B).” ELFA Legal Forum. Sheraton Nashville Downtown, Nashville. May 15, 2015 (pdf)
- “Dodd-Frank Act: Impact on Equipment Leasing and Finance.” NEFA Funding Symposium. Hyatt Regency San Antonio River Walk, San Antonio. September 9, 2014
- “Best Practices & Regulatory Expectations.” M&T bank, Buffalo, NY. December 17, 2013 (pdf)
- “State Specific Issues for Truck and Transportation Financing.” NEFA (pdf)
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“Similarities between the purchase money security interest creditor…” (pdf)
