We provide a quick snapshot of legal issues surrounding lending in the cannabis space, including state-federal regulatory hurdles and debt enforcement challenges for lenders, and business considerations for borrowers when preparing for a deal.
Finding financing for state-legal cannabis businesses can be a challenge, but with the right preparation, cannabis business borrowers can put their best foot forward to present themselves to potential lenders. We highlight the key considerations borrowers should be ready to address.
With cannabis being federally illegal, bankruptcy protection is not an option for cannabis-related businesses. In an effort to protect collateral and maximize recovery, cannabis lenders need to understand debt enforcement and liquidation options under state law, before entering into financing with borrowers. Learn more in this Law360 article authored by Joseph Cioffi, Seiji Newman and Christine...
A respite, however brief, can be refreshing, but the hope is always for more lasting change. For student loan borrowers, the hope has been for COVID-19 loan forbearance to lead to loan forgiveness. Such sweeping action doesn’t appear likely soon. But, there is an alternative that would be more targeted to the neediest borrowers and be more palatable to conservatives in Congress: making bankruptcy...
There are pitfalls that those in asset-based financing should be mindful of, particularly when it comes to insurance and protecting collateral against loss. We spoke with Jack Schwartz, managing director of Davis+Gilbert Risk Management LLC, about key issues to keep in mind when buying policies. Jack has been working with clients for over 15 years with a particular emphasis on real estate and...
Making order out of a multiverse is an extraordinarily difficult task, just ask DC Comics, which has struggled to achieve the success of its rival, Marvel, to create a coherent narrative for its popular superheroes. Regulators in Washington, D.C. and elsewhere must do better if they hope to create a comprehensive regulatory framework for an ever-expanding multiverse of digital coins and digital...
Lenders, servicers and others regulated by consumer protection statutes may be able to rest a bit easier following the U.S. Supreme Court’s recent decision in TransUnion LLC v. Ramirez (Ramirez), where the Court filtered out over 75% of claimants in a consumer class action because they did not suffer actual harm from the alleged statutory violations. The Ramirez decision is also potentially...
