Clarifying TruPS Holders’ Exercise Of Remedial Rights

Law360, New York (October 9, 2014, 10:41 AM EDT) -- In 2006, FMB Bancshares Inc. — as did many other bank-holding companies before it — entered into a trust-preferred transaction, which is a two-tiered debt structure whereby — in the first instance — the holding company issued debentures that were to be sold to a newly created statutory trust. The trust, a separate legal entity from FMB, the holding company, issued its own preferred (or capital) securities (trust-preferred securities, or TruPS), which were sold to investors, and common securities, which were sold to FMB.

The proceeds from the sale of the TruPS were used by the trust to purchase the debentures,...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Related Sections

Law Firms

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!