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Article: LEGISLATION: Bills Would Hamper Lease-Back Termination Payments.(Washington)
- Article from:
- The Bond Buyer
- Article date:
- August 20, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Audrey Dutton
Bills recently introduced by key members in the House and Senate would set up a major deterrent to banks and other equity investors seeking to force issuers to fork over termination payments for lease-back deals. The prospect of such deal terminations threatened to jeopardize the fiscal conditions of transit agencies and electrical utilities last year after credit rating downgradings of insurers on the deals.
The identical "Close the SILO/LILO Loophole Act of 2009" bills were introduced in the House by Rep. John Lewis, D-Ga., chairman of the House Ways and Means Committee's oversight panel, and in the Senate by Sen. Robert ...