Many standard subsidiary guarantees in secured financing transactions may be illegal under rules recently issued by the Commodity Futures Trading Commission (“CFTC”) under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). These rules, which became effective on March 31, 2013, expanded the meaning of the term “swap” to include a guarantee of a swap and made it illegal for any person other than an “eligible contract participant” (ECP) to enter into a swap that is not on, or subject to the rules of, a designated contract market (DCM). ECPs include entities with total assets exceeding $10 million, those whose obligations are guaranteed by an ECP, and those with a net worth exceeding $1 million that are hedging commercial risk.
To view this content, please continue to Lexis Advance®.
Not a Lexis Advance® Subscriber? Subscribe Now
LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.
ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.
For questions call 1-877-256-2472 or contact us at firstname.lastname@example.org