Public Finance Credit Enhancement/Direct Purchase

​Orrick is one of the few law firms in the country with expertise in all areas necessary to provide effective representation to credit enhancers of government obligations, such as banks, insurance companies, pension funds, sureties or other financial institutions.

Our Public Finance Credit Enhancement/Direct Purchase Group combines the expertise of our commercial finance practice with our public finance bond counsel practice (generally ranked first in the country) to offer a credit enhancer or direct purchaser expert advice on creditors’ rights in general and on public entities’ rights in particular.

Public vs. Private Borrowers: Rights and Restrictions

Public entities are governed by different laws and have very different rights and obligations than private borrowers.  For example, unlike private borrowers, public entities have few implied powers. They operate under significant limitations on their ability to incur debt and other liabilities (including indemnities and other contingent liabilities), and under restrictions on remedies that may be enforced against them. Public entities are subject to separate bankruptcy statutes and different rules governing the perfection of security interests.  In addition, while private obligations are generally backed by the general credit of the obligor or specific collateral, public entities employ a vast array of limited obligation security structures to comply with or avoid their peculiar legal restrictions.

Breadth of Experience

Lawyers in our Public Finance Credit Enhancement/Direct Purchase Group have considerable experience in such areas as:

  • insurance law
  • environmental law
  • letters of credit and liquidity facilities
  • securities law
  • secured transactions
  • creditors’ rights
  • bankruptcy
  • interest rate swaps and derivatives
  • bank regulation (including capital adequacy requirements)

We also draws upon the considerable expertise of our Municipal Distressed Debt and Bankruptcy Group and our Real Estate, Structured Finance, and Project Finance practices—areas of law that have become increasingly important to lenders and other providers of credit.