Local Troubled Asset Relief Program (TARP) Transactions
May 18, 2009
By: Robert M. Vinton
Some of the nation’s largest banks are now considering early payoff of their TARP funds. When the TARP program was first implemented in the fall of 2008 it included few if any restrictions on participating institutions. In February of 2009 Congress imposed more restrictive rules governing compensation and operations at TARP institutions. It is anticipated that for the most part Colorado’s community banks will retain the capital they obtained through TARP transactions for a projected five-year period.
Fairfield and Woods has recently assisted several clients with the application and consummation of TARP transactions. Additionally we helped our clients find solutions to the complex issues associated with TARP funds. The transaction sizes ranged from a little over $2 Million to a high of $70 Million. These TARP monies were infused into the capital accounts releasing into the local credit markets close to $1 Billion in additional funds that are potentially available for loans.
Fairfield and Woods, P.C. fully utilizes our in-house talent. Corporate Paralegal Kelli Crano was of great assistance to the preparation of corporate documents and orchestration of shareholder approvals of preferred stock as well as requisite execution and processing of myriad U.S. Treasury documents. Thanks to Kelli Crano and Janice Jonett for very able assistance in serving our clients’ needs in these pioneering matters.
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This Article is published for general information, not to provide specific legal advice. The application of any matter discussed in this article to anyone's particular situation requires knowledge and analysis of the specific facts involved.
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