IN THIS ISSUE

  • Commercial Loans When LIBOR Is No More

  • Obtaining Surety Bonding In A Post-Pandemic World

  • The New Illinois Trust Code
ARTICLES
Commercial Loans When LIBOR
Is No More
By Todd A. Bickel
Telephone: 312.456.0192

The London Inter-Bank Offered Rate (LIBOR) is likely soon to become extinct. For decades, LIBOR indexes have been among the primary sources used by commercial lenders in floating rate loan transactions, but in 2017, the regulating body for LIBOR announced that its publication of those indexes may cease after December 2021. Since then, banks have been wrestling with how best to handle outstanding loans on their books which use LIBOR to determine the interest rate, and also how to price and document new loan transactions when both bankers and borrowers are accustomed to LIBOR-based interest rates.
Obtaining Surety Bonds In A Post-Pandemic World
By Cornelius F. Riordan
Telephone: 312.456.0767
A construction surety bond is underwritten on the basis of an individual contractor’s ability to perform the contract to be secured by the bond. Underwriting a bond has always been a challenge because there are many factors that influence the decision to issue a bond. But issuing a bond in the current pandemic marketplace has far greater risk than before due to factors outside the contractor’s control.  
The New Illinois Trust Code
By Emily C. Kaminski
Telephone: 312.456.0284
Illinois has revised its trust laws with a new Trust Code. The new law applies to all trusts.

Here are some highlights of the Trust Code:

Accounts: The trustee must deliver an annual accounting to (a) all current beneficiaries; and (b) all presumptive remainder beneficiaries. The creator of the trust (called the settlor) can limit the duty to account to presumptive remainder beneficiaries but cannot limit the duty to account to current beneficiaries. 
LODGING Magazine's Podcast Series
Interviews RSP
Steve Jakubowski was interviewed for LODGING Magazine’s Podcast Series on the topic ”Navigating Commercial Real Estate Bankruptcy” published August 5th. As the COVID-19 crisis continues, hoteliers are starting to make difficult decisions about their properties, including decisions regarding whether a bankruptcy makes sense. Steve’s interview focused on issues facing parties in a distressed hotel situation and what hoteliers should keep in mind as they plan their financial futures.

Telephone: 312.456.0191
ABL Advisor's Video Series Connects with RSP
Laurie A. Martin Montplaisir participated in ABL Advisor's Video Series on the topic “Bankruptcy-Opportunities and Risks for Factors and Asset Based Lenders (ABLs)” held on August 14th. Laurie discussed the impact the COVID-19 pandemic has had on the bankruptcy process and provided insights into how factors and ABLs need to be prepared to work through the issues at play when entering debtor-in-possession financing agreements. Laurie also provided her insights into how the CARES Act has impacted the economy as well as an outlook for bankruptcy activity in 2021. 


Telephone: 312.456.0292
Law360's Coronavirus Q&A Series Interviews RSP
R. Kymn Harp was interviewed for Law360 Coronavirus Q&A Series on July 17th. Kymn discussed the ways the COVID-19 pandemic has impacted businesses and created a new set of legal questions. His interview focused on the hurdles to reopening in Chicago and the challenges borrowers will face as 90-day forbearance periods expire. 




Telephone: 312.456.0378
ACHIEVEMENTS OF NOTE
Andrés J. Gallegos
 Telephone: 312.456.0381 | Email: agallegos@rsplaw.com

Andrés J. Gallegos presented three webinars hosted by the Christopher & Dana Reeve Foundation. The first and second webinars held July 16th and August 20th, focused on the topics “Accessible Healthcare for Persons with Paralysis and Mobility Disabilities; the Impact of COVID-19 upon Persons with Disabilities; and Advocacy Strategies to Obtain Accessible Healthcare and Combat Disability-Based Discrimination". On September 24th, Andrés also was a co-presenter for the third and final webinar discussing the Foundation's advocacy plans and initiatives to address accessible healthcare as the Foundation’s policy priority.
R. Kymn Harp
 Telephone: 312.456.0378 | Email: rkharp@rsplaw.com

R. Kymn Harp presented a webinar to the Illinois Real Estate Lawyers Association on September 9th. Kymn discussed the topic “IL Condominium Deconversion: Process and Pitfalls”.
Richard Lee Stavins and
Diana H. Psarras
 Telephone: 312.456.0371 | Email: rstavins@rsplaw.com
 Telephone: 312.456.0196 | Email: dpsarras@rsplaw.com

Richard Lee Stavins and Diana H. Psarras represented the prevailing party in a case in the Illinois Supreme Court brought against their client by the State of Illinois. The Court vindicated the client's position that it was not legally liable for a civil rights judgment against the client's predecessor where the client purchased the predecessor's assets but not its liabilities. In reaching its decision, the Supreme Court agreed with RSP and its client, and declined to create a fifth exception to Illinois’ common law rule of corporate successor non-liability and declined to adopt the federal successor liability doctrine in cases when a judgment has been entered for a violation of the Illinois Human Rights Act.
Cornelius F. Riordan
 Telephone: 312.456.0767 | Email: criordan@rsplaw.com

Corneilus F. Riordan authored “Obtaining Surety Bonding in a Post-Pandemic World” that was published August 28th in the Construction Executive magazine.
Richard Lee Stavins
 Telephone: 312.456.0371 | Email: rstavins@rsplaw.com

Richard Lee Stavins presented an oral argument before the Illinois Supreme Court at its May 2020 session. Because of the COVID-19 pandemic, the Court ordered all attorneys to argue remotely from their home computers via Zoom video conference, rather than in the courtroom in Springfield. This was the first time in the Court's 202 year history that any case was so argued. Over the last 52 years, Richard has represented litigants in 126 appeals before various reviewing courts. He reports, however, that this was the first time he presented an oral argument while wearing a suit jacket, white shirt, tie and pajama bottoms.
Justin L. Weisberg
 Telephone: 312.456.0190 | Email: jweisberg@rsplaw.com

Justin L. Weisberg conducted a presentation for the Hispanic American Construction Industry Association and the Innovation DuPage. Justin provided legal insight for the course modules in connection with the Construction Industry Owner-to-CEO Business Accelerator Program, an initiative designed to support Hispanic, Black, female and veteran-owned businesses.
About Us
For more information, visit us online at www.rsplaw.com.
RSP CHICAGO
180 North LaSalle Street, Suite 3300
Chicago, Illinois 60601
Telephone: 312.782.9000
Fax: 312.782.6690
RSP GLENVIEW
2222 Chestnut Avenue, Suite 101
Glenview, Illinois 60026
Telephone: 847.729.7300
Fax: 847.729.7390
Publication of this legal newsletter by Robbins, Salomon & Patt, Ltd. is not intended as a solicitation of legal representation, but rather educational purposes only as well as to give you general information and a general understanding of the law. It is written entirely by members of the firm. We welcome any comments or questions about topics covered in this or any issue. This newsletter is not intended as a replacement for individual legal advice. The contents of this publication may be quoted or reproduced if credit is properly given to the source.