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Kentucky governor orders closing of all non-life-sustaining businesses
On March 25, Kentucky Governor Andy Beshear issued an executive order mandating that only “life-sustaining businesses” may remain open and encouraged citizens to remain “healthy at home.” The list of life-sustaining businesses includes banks, credit unions, mortgage companies, payday lenders, check cashers, money transmitters, and securities institutions.
Federal Reserve Board delays changes to provision of intraday credit to foreign banks
On March 24, the Federal Reserve Board announced that it will delay planned revisions to their procedures that govern providing intraday credit to U.S. branches of foreign banking organizations. The amendments were originally approved on April 1, 2019, and were scheduled to become effective on April 1, 2020. The FRB is delaying implementation for six months, until October 1, 2020, to provide foreign banking organizations and the Federal Reserve Banks allow additional time to allow both the with additional time to focus on “heightened priorities” instead of establishing new arrangements to comply with the proposed amendments.
NYDFS provides emergency relief to consumers
On March 24, NYDFS issued an emergency regulation providing financial relief to New Yorkers affected by Covid-19. Among other things, New York regulated institutions must (i) make applications for forbearance of any payment due on a residential mortgage of a property located in New York, widely available to any individual who resides in New York and who demonstrates financial hardship as a result of the Covid-19 pandemic; and (ii) subject to the safety and soundness requirements of the regulated institution, grant such forbearance for a period of 90 days to any such individual. New York regulated banking organizations must also provide certain financial relief to individuals who can demonstrate financial hardship, including eliminating fees charged for use of certain ATMs, overdraft fees, and credit card late payment fees. The regulations also establish requirements for institutions regarding the criteria for individuals to qualify for relief, application processing, and record retention, including expedited timelines to process applications for relief.
Pennsylvania expands stay at home order to include Erie County
On March 24, the Pennsylvania governor extended Pennsylvania’s stay at home order to Erie County. The stay at home order previously only applied to certain other Pennsylvania counties.
Minnesota issues executive order suspending evictions and writs of recovery, requesting moratorium on foreclosures
On March 23, the Minnesota governor issued an executive order suspending evictions and writs of recovery during the Covid-19 pandemic. The order also requests that financial institutions holding home mortgages implement an immediate moratorium on all pending and future foreclosures and related evictions when the foreclosure or foreclosure-related eviction is caused by the Covid-19 pandemic. Financial institutions are also strongly urged not to impose late fees or other penalties for late mortgage payments related to the Covid-19 pandemic. The executive order will remain in effect until the declared emergency is terminated or rescinded.
New Hampshire issues emergency order authorizing secure remote online notarization
On March 23, the New Hampshire governor issued an emergency order temporarily authorizing secure remote online notarization, with certain specified conditions. If state law requires an individual to appear personally before or be in the physical presence of a notarial officer at the time of a notarization, this requirement is satisfied if the individual and the notarial officer can communicate simultaneously by sight and sound through an electronic device or process at the time of the notarization. The order provides additional guidance on the signature, mailing, official date and time, and validity and recognition of the notarization.
New York issues administrative order limiting court filings
On March 22, the Chief Administrative Judge of the New York State Courts issued an administrative order directing that, effective immediately and until further order, no papers will be accepted for filing by a county clerk or court in any matter not considered an “essential matter.” Essential matters include certain criminal matters, family court matters, Supreme Court matters, civil/housing matters, and any other matters the court deems essential. The list of essential proceedings is subject to ongoing review and amendment, as necessary.
New York issues executive order relating to financial institutions
On March 21, the New York governor issued an executive order stating that it is an “unsafe and unsound business practice” for banks to fail to “grant a forbearance to any person or business who has a financial hardship as a result of the COVID-19 pandemic for a period of 90 days.” The Order directs the New York Department of Financial Services (NYDFS) to promulgate emergency regulations to mandate that applications for forbearance be made widely available for consumers. Additionally, the order empowers the NYDFS to promulgate emergency regulations to direct that, solely for the period of the Covid-19 emergency, fees for the use of automated teller machines (ATMs), overdraft fees and credit card late fees, may be restricted or modified in accordance with the Superintendent’s regulation of licensed or regulated entities, “taking into account the financial impact on the New York consumer, the safety and soundness of the licensed or regulated entity, and any applicable federal requirements.”
New Hampshire issues executive order prohibiting evictions and foreclosures
On March 17, the New Hampshire governor issued an emergency order temporarily prohibiting evictions and foreclosures. All judicial and non-judicial foreclosure actions are prohibited during the declared State of Emergency, and all applicable provisions of any law, rule, or other regulation which would allow for the initiation of foreclosure proceedings are suspended for the same duration. However, the order does not relieve an individual of their obligations to pay rent, make mortgage payments, or any other obligation which an individual may have under a tenancy or mortgage.
Connecticut regulator permits paperless submission of security and business filings
On March 25, the Securities and Business Investments Division of the State of Connecticut Department of Banking issued interim guidance permitting paperless regulatory filings in light of the Covid-19 pandemic. The interim guidance permits and “highly encourage[s]” securities registration, exemption and covered security filers, as well as business opportunity registration filers, to submit regulatory filings and payments electronically. The Division also waived certain manual signature and notarization requirements.