Mandated letters

In sophisticated transactions involving an SPV, mandate letters are usually signed between the investors and the arranger of the transaction. 

The main points to keep in mind while drafting the mandate letter are set out below ... 

In the case of sophisticated transactions involving SPVs, it is important to address in the mandate letter who will pay the legal, rating agency, and other expenses if the transaction does not go through. Confidentiality undertakings should also be inserted to prevent the investors from using the information obtained to close parallel transactions. 

Indemnity clauses in favour of the arranger should also be included in both the mandate letters and the subscription agreement. An indem-... 

After the mandate letter is signed, the process of preparing all the relevant documentation starts. The length of time needed from the mandate to the issuance depends on the specific circumstances of the transaction, market conditions and the experience of the issuer, it can take from three days in the case of a plain vanilla bond issued under an MTN programme to six or even more months for a structured transaction. 

The subscription agreement, like the mandate letters, usually includes walk-away clauses as for example ... 

The arranger had to sign a mandate letter with the administrator, appointing them to carry out the day-to-day activities of the SPV. There was also a company domiciliation agreement between the SPV and the administrator setting out what the administrator s duties will be, the fees they will get paid and what the obligations of the SPV will be to aid the administrator in its duties. 

A warning letter is distinguishable from a notice of violation, also called an untitled letter. An untitled letter cites violations that do not meet the threshold of regulatory significance for a warning letter, but the FDA has a need nevertheless to communicate. Unlike a warning letter, an untitled letter does not include a warning statement that failure to take prompt correction may result in enforcement action and does not evoke a mandated FDA follow-up. Further, the untitled letter requests (rather than requires) a written response (from the manufacturer) within a reasonable amount of time (e.g., Please respond within 45 days ). 

Purchaser identification Most jurisdictions mandate that individual purchasers identify themselves with a photograph, proof of street or residential mailing address, and signature. Some Jurisdictions ask for the purchaser s birth date, driver s license or other state-issued identification number, year in which the purchaser s vehicle was manufactured, and vehicle license tag number. Most business recipients must furnish an authorization letter listing an identification number, an address, a phone number, and a description of the chemical s intended use. 

In 2000, again after some wrong turns, the FERC mandated that pipeline companies price new or expanded services on an incremental basis. Setting incremental pricing as the default rule for new pipeline construction put an end to the fight over traditional certification. If a pipeline company approached the Commission with a new proposal, it was no longer required to demonstrate connected gas supplies. With a portfolio of letters of intent from committed incremental shippers, the Commission had virtual prima facie evidence of economic need. The typical time period needed to plan and construct a typical large-scale pipeline expansion project dropped from five years to two. "... 

For many years the Society of the Plastics Industry, Inc. (SPI) in the United States has romoted a voluntary coding system for the identification of the resins used in rigid plastic containers. The system comprising a number 1 to 7 and several letters is generally moulded into the bottom of a container. For example, the number 1 and the letters PETE indicates that the container is made of polyethylene terephthalate while the number 2 and the letters HDPE signify that the container is comprised of high density polyethylene. Thirty-nine U.S. states have mandated that plastic bottles 16 ounces or more and other rigid plastic containers of 8 ounces or more must carry the SPI resin code. 

Guidance such as Letters of Interpretation, OSHA contact information, a glossary, and an index are provided for reference purposes. While this information does not mandate requirements, it nonetheless provides vital information should additional guidance be necessary. This will help ensure continued compliance with regulatory requirements. 

Why, you might ask, would the manufacturer bother to include them Because they re compelled by law. The Federal Trade Commission (FTC) mandates that clothing companies meet federal agency regulatory requirements. Sadly, because sometimes laundry care labels are created with only the letter of the law in mind, they do not always communicate optimal instructions for care. 

Federal OSHA does not mandate a specific temperature range for fluid in eyewash stations. However, in a letter of interpretation, it suggests an acceptable temperature between 60°F and 105°F. If only one water supply is available, then the cold water line is preferable to the hot. 

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