News, Insights & Events

Can I Secure a Loan with Bitcoin? Part I

April 5, 2018
Lance P. Martin, Ward and Smith Creditors' Rights

If virtual currencies continue to grow in popularity, it's only a matter of time before borrowers offer to pledge virtual currency as collateral for loans. This article does not advise lenders on whether they should secure loans with virtual currency, but instead it focuses on whether a lender can use the familiar tools of Article 9 of the Uniform Commercial Code ("UCC") to create and perfect a security interest in bitcoin.

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Can I Secure A Loan with Bitcoin? Part II

April 5, 2018
Lance P. Martin, Ward and Smith Creditors' Rights

Because bitcoin is likely a general intangible under Article 9, lenders cannot be certain that bitcoin is not encumbered with other security interests before being pledged by the holder. And the nature of bitcoin means it is nearly impossible for a lender to exercise “control” over bitcoin for default and repossession purposes.

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Best Practices For Homeowner Association Directors and Boards

April 5, 2018
Eric J. Remington, Ward and Smith Community Associations

The typical community association is governed by a board of directors comprised of volunteers who are elected by their fellow owners. The directors manage the corporate affairs of, and set policy for, the association, and as a result, they often become the main focus of dissatisfied members. This can lead to directors being sued individually for failing to fulfill their duties to act in the best interest of the association, its owners, and directors. As a result, associations often encounter a lack of interest and willingness of members to serve on their board. However, if a board and its directors follow a simple set of best practices, they can avoid many problems and thereby encourage community members to serve on the board. These practices benefit not only the board and its members, but the community as a whole. Below are some best practices which should help directors and boards avoid common pitfalls.

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Delaware Law on Blockchain and Other Automated Stock Transfer and Records Systems

April 5, 2018
Benji Taylor Jones & James F. Verdonik, Ward and Smith Fintech

Corporations are also required to keep a ledger of stock transfers. For many businesses, this is a fairly simple task because their stockholders rarely change. If your stockholder base is more active, however, automating the stock transfer record keeping process through blockchain software may be useful to you. In fact, one of the best applications for blockchain technology is automating the tedious process of maintaining stock ownership records. Several states have already changed their corporate statutes to permit the use of blockchain and other technology to record corporate records, including stock ownership ledgers.

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European Preservation Order on Bank Accounts: Cross-Border Debt Recovery Easier for SMEs

April 3, 2018
Alessandro Benedetti
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What’s Going On With OSHA?

March 2018
Labor and Employment Law
Bond, Schoeneck & King, PLLC
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Wake Up and Smell the . . . PLAY-DOH®?

March 22, 2018
Erica Rogers, Ward and Smith Intellectual Property Alert

It's easy to understand how a word can function as a trademark—consumers can identify the source of a product and distinguish it based on its name. For example, the word or name PLAY-DOH® functions as a trademark. It is also easy to understand how a design can function as a trademark. The cloud-like design with bubbled font appearing on the PLAY-DOH® containers is a feature of its design mark. Hasbro also has rights in the product packaging—the yellow containers with red lids, in combination, are features of the overall trade dress of the product. Through a word, name, and design, consumers can identify Hasbro as the source of the product. So what about the scent of PLAY-DOH®?

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Protecting Important Assets of your Growing Business

March 20, 2018
The Value of Non-Compete Agreements and Trade Secret Protection
Norman Leonard, Ward and Smith Business Alert

You have a great idea for a product or service and dream of putting that idea to work by starting a business. putting that idea to work by starting a business. Once your dream has become reality, however, and your business starts to grow, it will not be successful for very long if you don't pay attention to certain fundamental legal protections. Among those protections are simple legal steps that your business can take to protect its employment and customer relationships and Once your dream has become reality, however, and your business starts to grow, it will not be successful for very long if you don't trade secrets.

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Blockchain and Cryptocurrency: Recent Legal and Regulatory Developments

March 13, 2018
Marc Press & Joseph Doll, Cole Schotz PC, Corporate Law

The first two weeks in March 2018 have seen a number of developments with respect to the regulation of cryptocurrencies in the United States.

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New Partnership Audit Rules are Effective This Year: Does Your LLC Operating Agreement or Partnership Agreement Need to be Revised?

March 2018
Tax Law
Bond, Schoeneck & King, PLLC
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Power Hungry Cannabis Industry Faces Mix of Energy Related Taxes, Fees, and Regulations

March 6, 2018
Elizabeth Bogle & Jordan A. Fisch, Cole Schotz PC, Corporate Law

Growing cannabis, especially indoors, is energy-intensive. It can take upwards of 5,000 kWh to grow just one kilogram of cannabis (2,000 kWh to grow one pound) as compared to 10,000 kWh of energy to power a residence in the United States for one year. Recent reports show that the cannabis industry is having a significant impact on the use of electricity in states that have legalized it for medical and/or adult use. In 2015, various reports concluded that cannabis growers accounted for approximately 1.7% of the United States’ total electricity usage, a cost of upwards of $6 billion. The vast majority of states that have legalized cannabis cultivation, for medical and/or adult use, have not addressed the issues surrounding energy consumption prior to enacting legislation. As a result, municipal governments, state agencies and public utilities have had to take a reactive approach to the astronomical utilization of energy.

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Obstruction of Justice

February 15, 2018
It's not the Crime, it's the Cover-up
Wes Camden and Caitlin Poe, Compliance and White Collar Defense Alert, Ward and Smith

The familiar saying that "it's not the crime, it's the cover-up" is well-worn for a reason. Obstructive behavior or false statements can land defendants in hot water regardless of the substance of the government's underlying allegations. Consider the following: •Martha Stewart was never convicted of insider trading—she went to federal prison for lying to investigators. •The House of Representatives initiated impeachment proceedings against Bill Clinton on two charges—perjury and obstruction of justice. •Richard Nixon resigned before the House could vote on whether to initiate charges, but the Judiciary Committee had approved three articles of impeachment against him—for obstruction of justice, abuse of power, and contempt of Congress. A subject or target of an investigation must navigate treacherous terrain in simultaneously preparing a defense and avoiding any actions that might be perceived as obstructive.

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