Sheppard Mullin Financial Institutions Law Blog

Question: If wire transfer instructions designate a valid account number, but an incorrect beneficiary, may the bank that accepts the incoming wire rely upon the account number?

Answer: Yes, assuming the bank did not have actual knowledge of that inconsistency. So said the court of appeal in Los Angeles in TME Enterprises, Inc. v. Norwest Corporation, 04 C.D.O.S. 10834 (December 9, 2004).

Question: Should the "yield spread premium" a lender pays to a loan broker be included in the calculation of "points and fees payable by a borrower" under California's predatory lending law?

Answer: No, at least according to the Fourth District Court of Appeal in Wolski v. Fremont Investment & Loan, 04 C.D.O.S. 11166 (Dec. 20, 2004).

Question: Does the 1995 amendment to the Truth In Lending Act lift the $1000 cap for statutory damages for TILA violations involving loans secured by personal (not real) property?

Answer: No, the Court answered in a rare 9-0 decision. So, for now, the cap remains in place.