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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Wednesday, March 2, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will examine the Corporate Transparency Act (CTA) and its implications for real estate borrowers and lenders. The panel will discuss the new reporting requirements imposed on borrowers, how the CTA affects lenders and their AML procedures, and the policy considerations behind the law.

Faculty

Matthew R. Peurach
Partner
Morris Manning & Martin LLP

Mr. Peurach’s practice focuses on structuring commercial real estate transactions, negotiating and drafting partnership agreements and LLC agreements, documenting equity investments in real estate, as well as structuring private equity funds and other joint venture-related entities predominately focused on real estate investments. As a core component of Mr. Peurach’s general real estate private equity practice, he also regularly advises clients on tax issues associated with real estate and other corporate transactions, including qualified opportunity zone investments, complex like-kind exchanges under Section 1031 of the Code, affordable housing/low income housing tax credits, historic tax credits, energy credits, and mergers and acquisitions of corporate and flow-through entities. He is Chair of the firm’s Opportunity Zones Practice.

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Andrew J. Weiner
Partner
Pillsbury Winthrop Shaw Pittman LLP

Mr. Weiner’s practice is global in scope, with a significant and sustained concentration on transactions in the New York metropolitan area. Since 1976, Mr. Weiner has represented domestic and foreign clients in equity and debt transactions, the creation of real estate funds and joint ventures, and transactions involving distressed real estate. His practice has had a significant concentration in the hospitality and real estate investment trust (REIT) sectors, and in leasing. Mr. Weiner’s clients have included funds, family offices, institutional lenders, universities, non-U.S. investors and New York City developers.

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Description

The CTA establishes beneficial ownership disclosure and reporting requirements for any newly formed and existing corporation, LLC or partnership which files formation documents in any state. Real estate counsel must understand the disclosure and other requirements of the CTA, including what constitutes a "beneficial owner" and the entities to which it applies.

Any entity that has filed formation documents in any state is considered a "reporting company" for purposes of the CTA, subject to certain exemptions. Newly formed entities must submit a disclosure of its beneficial owners to FinCEN at the time of formation, and existing entities must file the disclosure within two years. A reporting company must also provide updated information to FinCEN within one year upon a change in beneficial ownership.

Failure to comply with the new CTA reporting requirements will result in serious penalties. Failure to meet the reporting standards may result in civil penalties of up to $500 per day, and any individual who willfully provides false or fraudulent information may face criminal fines up to $10,000 and/or imprisonment for up to two years.

The CTA adds a new layer of reporting and compliance requirements for lenders in real estate finance transactions. Lenders will need to reassess their AML protocols to better match the requirements of the CTA.

Listen as our authoritative panel discusses the CTA, the new federal reporting requirements it imposes on borrowers, and the added due diligence issues it presents for lenders.

Outline

  1. Basics and policy goals of the Corporate Transparency Act
  2. Key definitions
    1. Reporting company: exemptions
    2. Beneficial owner
  3. Reporting requirements
    1. New entities
    2. Existing entities
    3. Information required
  4. Implications for real estate borrowers and lenders

Benefits

The panel will review these and other questions concerning the CTA:

  • What kinds of entities are deemed "reporting companies" and who is considered a "beneficial owner" under the CTA?
  • What are the filing requirements for a reporting company that has changed ownership?
  • What are the penalties for a borrower who fails to comply with the CTA?
  • How might the CTA affect a lender's AML policies and procedures in making real estate loans?