Regulatory Alerts2021-01-01
Special Order 2021-1: Tax Equity Finance Transactions
The Kansas State Bank Commissioner issued Special Order 2021-1 to authorize state-chartered banks to engage in tax equity finance transactions permissible for national banks under 12 C.F.R. § 7.1025. Banks must limit these transactions to five percent of capital, with a maximum cap of fifteen percent, and provide written risk evaluations to the Commissioner prior to each transaction. The order subjects these transactions to substantive legal loan requirements and lending limits while taking effect immediately upon issuance.
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