Professional Documents
Culture Documents
1 J. Paul Forrester is a partner in the Chicago office of Mayer, Brown & Platt, an international
law firm. The author would like to thank his Mayer, Brown & Platt colleagues for their
contributions to this article, especially his partners, Jason H.P. Kravitt and Richard M.
Rosenberg, who co-authored an earlier version of this article which appeared in the February
1994 issue of The Financier and his partners, Charles M. Horn and William A. Levy, who helped
update the article. The views expressed in this article are the author's and should not be
attributed to Mayer, Brown & Platt or any of its clients. Return to article
2 Vol. 67, Oct. 1993 issue and Special Supplement.Return to article
3 Financing the Future: Report of the Commission to Promote Investment in America's
Infrastructure (Feb. 23, 1993). The Commission was formed to study the feasibility and
desirability of creating a type of infrastructure security to permit the investment of pension
funds to finance the design, planning and construction of infrastructure facilities in the United
States under Section 1081 of the Intermodal Surface Transportation Efficiency Act of
1991.Return to article
4 Environmental Conditions in Central Europe, EPA Journal (July-August 1990).Return to article
5 IDD Private Placement Letter, Vol. 16, No. 11, March 16, 1998 at p. 1.Return to article
6 Project Finance Portfolio Rating Criteria Outlined, Standard & Poor's CreditWeek, Oct. 4,
1993, at 41.Feature."Return to article
7 Independent Power Project Finance Rating Criteria, Credit Comments, Standard & Poor's
CreditWeek Reprint, Jan. 1993, at 1.Return to article
8 Rating Approach to Project Finance, Duff & Phelps Credit Rating Co., March 1996.Return to
article
9 See "Political Risk Plagues Alternative Energy Project", Private Power Executive/November-
December 1996.Return to article
10 See, Offering Circular, dated _______________, 1998. Also, see Moody's Investors Service,
Inc., report dated _______________, 1998. Return to article
11 See, Confidential Offering Circular, dated July 21, 1994. Also, see Standard & Poor's
CreditWeek, July 18, 1994 at pp. 63 ff. Return to article
12 Such a transfer with recourse may also give rise to a reserve requirement under Regulation
D of the Federal Reserve Board. However, this problem can usually be solved by careful
drafting. See Jason H.P. Kravitt, ed., Securitization of Financial Assets ¤12.05 (P-H L. & Bus.
1992). Return to article
13 See, the "Reigle Community Development and Regulatory Improvement Act of 1994" Section
350, Pub.L. 103-325, 108 Stat. 2160 (1994.) Return to article
14 Notice of Proposed Rule Making and Advance Notice of Proposed Rule Making issued May
1994 by Federal Financial Institutions Examination Council.Return to article
15 See Simplification of Registration Procedures for Primary Securities Offerings, SEC Release
No. 33-6964 [1992 Transfer Binder] Fed. Sec. L. Rep. (CCH) 85,053, at 83,389, 1992 SEC LEXIS
2691, at *22 (Oct. 22, 1992). See also Financial Statements of Properties Securing Mortgage
Loans, SEC Staff Accounting Bulletins, Topic 1-I, 7 Fed. Sec. L. Rep. (CCH) 74,101, at 64,208
(1993) (Audited financial statements of borrower are required when loan to borrower exceeds
20% of the registrant's assets).Return to article
16 Credit risk refers to the risk that a counterparty will be unable to fulfill its obligations
under a hedge due to bankruptcy, illegality, a change in tax or accounting laws, etc. Market
risk arises from the possible difficulty of finding a counterparty with swap needs mirroring
one's own. This would be a particular problem with long-term hedges such as those associated
with infrastructure projects. Return to article
__________________________________________________________________________