Hinshaw congratulates firm client, CardWorks Servicing, LLC (CWS), on recently completing its acquisition of Dataline Systems, LLC (Dataline), a privately-held provider of business process outsourcing and financial services operations support. The closing of the transaction was effective January 1, 2023. Upon closing, Dataline became a wholly-owned subsidiary of CWS.

Hinshaw congratulates firm client, Citizens Bancshares, Inc, the parent company of Citizens First State Bank, on its recent agreement to be acquired by CSB Financial Holdings Inc., the holding company for Community State Bank. Terms of the transaction were not disclosed. The transaction is subject to regulatory approval and other customary closing conditions, and is expected to close in the third quarter of 2022.

Hinshaw congratulates its client, Empire Underwriters LLC (Empire), for recently completing its sale to Scottish American. Terms of the transaction were not disclosed.

Hinshaw attorneys Tim Sullivan, Kyle Fonjemie, and Anthony Zeoli contributed chapters in the new 2024 Edition of the Illinois Institute for Continuing Legal Education (IICLE) handbook “Business Law: Miscellaneous Operating Issues, 2024 Edition.” Founded in 1961, the IICLE publishes a comprehensive set of handbooks designed by and for Illinois attorneys.

Hinshaw's Tim Sullivan and Mike Morehead authored an article titled "Federal Reserve Revises its Small Bank Holding Company Policy Statement." It was published by the Community Bankers Association of Illinois in the November issue of its Banknotes magazine.

In order to sell securities (notes, common stock, preferred stock, membership interests in an LLC), a company must either register the sale under federal and state securities laws or find an exemption from such registration requirements. Complying with the securities registration provisions of federal and state law is a time-consuming and costly process. Most small to mid-size companies do not want to spend the money or time it would take to register such sales. In addition, the registration of such sales with the SEC may subject the company to continued SEC reporting requirements.

College of Business at Illinois State University 470 S. University St. Normal, IL 61790

1:15 to 2:30 p.m.

8 am - 5 pmThe Westin Lombard Yorktown Center70 Yorktown CenterLombard, Illinois 60148Tim Sullivan of Hinshaw & Culbertson LLP will present the "Legal Update" during the Crowe Horwath LLP 2014 Annual Financial Institutions Conference. This session will offer an overview of the regulatory changes in the banking industry from a legal perspective at both national and local levels. As a result of attending this session, participants should be able to advise their organizations on regulatory "hot topics" and emerging legal issues to help them more effectively manage risks arising in those areas. Additional topics at the conference include Federal and State Tax Matters for Financial Institutions, Accounting and Financial Reporting Update, M&A/Valuation Update, Regulatory Update, Stock-Based Compensation, and IT Security for Financial Institutions.

Hinshaw's T.J. Leake and Tim Sullivan will present a webinar titled "Understanding the Main Street Lending Program," on June 30, 2020. Presented in partnership with the Rockford Area Economic Development Council (RAEDC), the program will review the rules for each of the three Main Street Lending facilities. Leake and Sullivan will also provide an update on the Paycheck Protection Program (PPP), in light of the PPP Flexibility Act.

In early 2022, the Securities and Exchange Commission (SEC) proposed a series of new rules and rule amendments aimed primarily at increasing transparency and protecting investors in private fund transactions. This August, the SEC adopted final versions of those rules, which are set to become effective on November 13, 2023.

Currently, 31 states plus the District of Columbia allow the recreational use of marijuana. In addition, 37 states and the District of Columbia currently allow marijuana to be used for medical purposes.

President Biden signed into law the American Rescue Plan Act of 2021 (ARP Act) on March 11, 2021. The $1.9 trillion economic recovery package revised the Paycheck Protection Program (PPP) and the Shuttered Venue Operator Grant Program (SVOG), and also created the Restaurant Revitalization Grant Program (RRG Program).

Cybersecurity is not just as an IT issue but an enterprise risk management issue. As with any major business risk, companies should consider cybersecurity insurance as a way to transfer risk and mitigate potential losses.

On November 9, 2010, the Federal Deposit Insurance Corporation (FDIC) (as mandated by Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act – the “Dodd-Frank Act”) adopted rules providing for unlimited deposit insurance for noninterest-bearing transaction accounts from January 1, 2010, through December 31, 2012. These rules are effective December 31, 2010. This coverage is in addition to the $250,000 coverage available to depositors under the FDIC’s general deposit insurance rules. The term “noninterest-bearing transaction account” includes traditional checking accounts or demand deposit accounts on which no interest is paid. It does not include such accounts if they earn interest; nor does it include NOW accounts, money-market deposit accounts (MMDAs), and Interest on Lawyers Trust Accounts (IOLTAs).In addition, the rules impose three notice and disclosure requirements on insured depository institutions (IDIs). Under the rules, IDIs:

U.S. Supreme Court Holds That Prevailing Debt Collector Can Recover Costs Without Showing of Bad Faith and Harassment in FDCPA ActionOn February 26, 2013, the U.S. Supreme Court ruled 7-2 in favor of respondent debt collector in Marx vs. General Revenue Corporation, holding that the prevailing party in a Fair Debt Collection Practices Act (FDCPA) action may be awarded costs where the lawsuit was not brought in bad faith and for the purpose of harassment. Petitioner consumer had defaulted on a student loan, for which the creditor authorized the debt collector to collect. The consumer filed an FDCPA action against the debt collector, alleging that the collector harassed her and falsely threatened her with garnishment. After a one-day trial, the consumer did not prove any violation, and the district court awarded the debt collector costs for witness fees, witness travel expenses, and deposition transcript fees. The consumer appealed the district court’s decision awarding costs. Specifically, she argued that the court’s discretion under Fed. R. Civ. P. 54(d)(1) was displaced by 15 U.S.C. § 1692k(a)(3) of the FDCPA, which provides, in pertinent part, that “[o]n a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney’s fees reasonable in relation to the work expended and costs.”Despite the filing of an amicus brief by the Consumer Financial Protection Bureau (CFPB) in support of the consumer’s position, the Supreme Court held that costs are allowed under Fed. R. Civ. P. 54(d)(1). The Court concluded that the language and context of 15 U.S.C. §1692k(a)(3) demonstrate that it is not contrary to Rule 54(d)(1).For more information, please contact Barbara Fernandez or your regular Hinshaw attorney.