Legally Easy

Small Business Administration Economic Recovery Update

2009-07-07T23:19:00.000-07:00

Is the Small Business Administration, aka the SBA, doing enough to help small business owners weather the current economic storm? We're keeping track of the SBA website and news to find out. It's important, because small businesses provide the vast majority of jobs and drive a much greater part of the U.S. economy than large enterprises. SBA chief Karen Mills is pictured above.

The SBA website describes several economic recovery initiatives, including new loan programs. One example is the SBA ARC Loan Program, authorized by the 2009 Economic Recovery Act:

If your small business is stressed meeting expenses during these economic times, the U.S. Small Business Administration has a new loan program designed just for you.

SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan.
ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first.

Here's how to apply and prepare for the application process via your lender:

Applying for an ARC Loan

ARC Loans are provided by commercial lenders and guaranteed by the SBA. Your next step is to contact your lender who will help you determine if you are a candidate for an ARC Loan. Questions they may ask include the following:

Does your small business have an established banking relationship?
Has your small business been in operation for a minimum of two years?
Do you have financial statements (balance sheet, income statement, and cash flow statement) which demonstrate your business had a positive cash flow in one of the past two years (or as long as your business has been operating, if less than two years)?
Does your cash flow projection for the next two years indicate sufficient cash flow to meet your current and future loan payments?

Is your business suffering an immediate financial hardship? For example:

Declining sales and revenues;

Difficulty in making loan payments on existing debt;

Difficulty in paying employees;

Difficulty in purchasing materials, supplies, or inventory; and/or

Difficulty in paying rent and/or other operating expenses

For more information to help you manage your small business, visit the Business and Employment Legal Help Center.

Supreme Court Decides New Haven Employment Case

2009-06-29T07:15:00.000-07:00

In a case that will have both practical and political reverberations, the U.S. Supreme Court has ruled against the City of New Haven Connecticut in a reverse discrimination suit. The case, known commonly as "New Haven Firefighters," has political impact as well, due to the fact that Supreme Court nominee, Judge Sonya Sotomayor, participated in the appeals court ruling that has now been overturned by the Court. What does the ruling potentially mean for you, your business or organization?

Well, the New York Times reports that:

The ruling could alter employment practices nationwide, potentially limiting the circumstances in which employers can be held liable for decisions when there is no evidence of intentional discrimination against minorities.

The fact that this was a 5-4 decision indicates that even at the highest level, judges remain split on the application of employment law to the facts raised by the New Haven case. In particular, the case asked whether the city of New Haven Connecticut erred in throwing out the results of a promotion examination because minority test takers were unlikely to receive promotions based on the results of the exam.

Writing for the majority, Justice Kennedy states:

"Fear of litigation alone cannot justify an employer's reliance on race to the detriment of individuals who passed the examinations and qualified for promotions,"

Kennedy was joined by Chief Justice Roberts and Justices Scalia, Alito and Thomas.

The dissenting Justices were Ginsburg, Souter, Bryer and Stevens:

In dissent, Justice Ruth Bader Ginsburg said the white firefighters "understandably attract this court's sympathy. But they had no vested right to promotion. Nor have other persons received promotions in preference to them."

Undoubtedly, labor and employment lawyers will be busy crafting new rules for employers to follow in employment testing situations. Employers will be wise to review their employment practices for compliance with the New Haven ruling and to consult with an employment lawyer to understand the issues raised by the case in application to their own organization's practices and policies.

Michael Jackson's Legacy and Legal Estate

2009-06-26T08:26:00.000-07:00

Millions of us grew up in the Michael Jackson era of pop music. The first time I saw Michael perform, was as a pre-teen when my youngest and most fun loving aunt let me tag along with her friends to see "The Jacksons" with Randy on the bongos. I am definitely part of the "Thriller" generation. As much as any performer, Michael Jackson's body of work will always be part of the soundtrack of our lifetime.

Beyond his music, there is also, of course, a legal side to Mr. Jackson's legacy. On that front, his life diverged, especially as he aged, from the norm. He was very wealthy, but also very indebted financially. He experienced criminal legal accusation, trial and acquittal. He was the subject of lawsuits and settlements from both business partners and personal acquaintances. He was twice divorced. And now, without a doubt, there will be a protracted examination of his legal estate and perhaps that will involve more disputes.

Critical stories are already starting to appear. Here are a few links:

WSJ Law Blog opines "On Michael Jackson and the Law":

When the immediate tributes and remembrances and eulogies have run their course on the King of Pop, attention will likely turn to a handful of more mundane questions: what happens to Neverland, to his collection of curios; what, if anything, becomes of the rights to his musical legacy? All of these questions, of course, will involve lawyers. Dozens upon dozens of lawyers.

From Reuters: Mystery surrounds Michael Jackson's sudden death

There will be much more to follow on the Michael Jackson estate and legal situation. He leaves three children, apparently under the care of a nanny and his mother, Katherine. We hope that Michael made arrangements for his loved ones and that he rests in peace.

- Charley

Jon and Kate Divorce Shines Light on Family Law

2009-06-23T08:41:00.000-07:00

The sensational break-up of America's most famous television family again highlights the legal side of family life. According to the San Francisco Examiner, "on Monday, June 22nd, divorce documents were filed in the Berks County courthouse."

In their televised announcement of the divorce, Jon Gosselin said: "Kate and I have decided to separate...I am stil in the show, but we'll interview separately. Nevertheless, apparently, TLC will continue to air the Jon & Kate Plus 8 show. Mom, Kate Gosselin, said (really) "the show must go on."

While the blogesphere and mainstream media is full of angst over whether, on its face, the televising of the Gosselin saga borders on child abuse, will the continuation of the show possibly do some good by illuminating some of the issues faced by children of broken marriages? Divorce, child support and raising good children after bad marriages is part of life. Now, is it possible that the Jon & Kate Plus 8 show might actually live up to "reality?"

Before, during and after a marriage, couples and families experience a romantic, legal and financial relationship. It is a good idea for everyone to learn about the legal side of marriage, such as prenuptial agreements, child care, child custody and for some, divorce and child support. The Rocket Lawyer Family Legal Help Guide is a good place to start.

Child Support Update

2009-05-28T08:01:00.001-07:00

In this economy, child support payments can strain the often already tight relationships between former spouses. Sadly, children are often the ones who suffer the most. Your state probably has several resources listed on the state's web site to to help you, whether you are the spouse paying child support or the one collecting it on behalf of your children.

Attorney Elisabeth Camaur, pictured above, specializes in family law matters, including divorce and child support.

Rocket Lawyer has a list of every state department of child services web site and more information to help with your child support questions.

Your Legal Rights and Identity Theft Protection

2009-05-05T06:52:00.000-07:00

The Supreme Court recently put the spotlight on Identity Theft (albeit by making it more difficult to use federal ID-Theft laws in other prosecutions). So, we thought that this would be a good time to look at the ways that people can protect themselves from identity theft, and recover faster if they are the unfortunate victims of one of the fastest growing crimes in the world.

Over the past several years, many new laws have been enacted to help people protect against identity theft. These laws include the powerful Security Freeze process that is now available to residents of every state. With a security freeze, anyone can make it nearly impossible for someone else to obtain credit in the original person's name. This relatively simple process can take away most, if not all, of the financial benefits (for the criminal) and risks (for the potential victim) of ID theft.

Source: consumersunion.org

Rocket Lawyer can help you take control of your identity^TM

How do Whistleblower Lawsuits Work?

2009-04-16T09:10:00.000-07:00

Two big whistleblower lawsuits netted the plaintiffs almost $100 Million combined in the past month. What are these David vs. Golliath lawsuits, also called qui-tam, and how might you someday be affected by them?

So called "whistleblower," or "qui-tam" suits are filed under the False Claims Act, a federal law that empowers people to file lawsuits against federal contractors claiming fraud against the government. Successful whistleblowers can receive a portion (often 15-25 percent) of the damages recovered. Thus, whistleblowers can serve to help reduce fraud against the government, ultimately saving taxpayer money. Whistleblowers with insider knowledge of false claims involving health care, military, and other government spending programs have brought suits under the Act for decades.

As reported by the Wall Street Journal's Law Blog, April 2009 has seen two of the biggest whistleblower settlements in history:

A few weeks ago, we blogged on a huge whistleblower settlement involving Northrop Grumman, one in which pocketed the plaintiff/whistleblower nearly $49 million. It was the largest whistleblower — or qui tam — settlement ever involving alleged military-procurement fraud.

Today, we open the papers to news of another whopper of a qui-tam settlement, one which will net the plaintiff/whistleblower about $45 million.

The case involved Quest Diagnostics and its Nichols Institute Diagnostics unit. The pair agreed to pay $302 million to resolve criminal and civil allegations regarding various diagnostic test kits manufactured and sold until 2006, prosecutors said Wednesday. The diagnostic tests allegedly provided inaccurate and unreliable results, prosecutors said. Under the arrangement, the duo will pay $262 million plus interest to resolve the claims. More...

If you know of instances of fraud against the government, you may be able to file and prevail in a whistleblower, or qui-tam case. Remember, in a qui-tam case, as the plaintiff (the person bringing the suit), you can receive a part of the ultimate settlement yourself. This right to share in the settlement has for centuries (qui-tam cases date back hundreds of years through both english common law and the American courts) encouraged citizens to act a watchdogs against fraud, waste and abuse in government contracting.

The first thing to do is to find a lawyer who specializes in whistleblower cases and knows what do to. In most cases, the lawyer will give you a free consultation to help you understand your rights. Thereafter, the lawyer will counsel you on how best to proceed, if at all with your whistleblower action. Many, if not most lawyers who work in whistleblower cases can also help you to understand your rights if you are retaliated against by your employer who may be involved in the subject matter of your case.

Find a whistleblower (qui-tam) lawyer

Attorney Alix Rubin
Entwisle & Cappucci LLP

Tax Day and Filing for an Extension

2009-04-15T07:04:00.000-07:00

Tax Day is here! Don't forget to file your tax return today. Need an extension? IRS Form 4868 is a simple Application for Automatic Extension of Time to File U.S. Individual Tax Return. You can do it yourself and send it in to the IRS today. If you do, don't forget to import the form into your Rocket Lawyer account and save it for your records in the File Safekeeper!

Or

If you need help with your tax return or extension, just start with Rocket Tax. In partnership with H&R Block, Rocket Tax has all the forms you need, including a free filing extension request. Simply complete the filing extension and send it to the IRS today, April 15.

Need a Tax Lawyer? Find a Tax Lawyer.

Good luck!

Tax Lawyer Jonathan M. Bernstein

No Fault Divorce in Hard Times

2009-04-13T15:43:00.000-07:00

It's a fact of life that not all marriages succeed. Now, the economic downturn is putting even more stress on families that are splitting up. While celebrity divorces like Mel Gibson's attract lots of media attention, for most couples, divorce is an expense that they just can't afford, but have to deal with in order to move on with their lives.

The New York times is reporting several commentaries in its series, "Husbands, Wives and Hard Times." As Paul Amato, a professor of sociology and demography writes in the series, "research...consistently shows that economic hardship undermines marital quality and stability...Since the middle of the 20th century, declines in the economy have been linked with increases in divorce rates."

Most states now offer a no fault divorce. So, couples who can amicably work out property distribution and child custody issues can preserve family and personal resources while moving on.

For more information, try:

Divorce Worksheet
Find a Divorce Lawyer
Collecting Child Support

Mel Gibson Divorce Papers:

Mel Gibson divorce papers - Get more Legal Forms

What Should You Do About the Denial of a Medical Insurance Claim?

2009-03-25T12:16:00.000-07:00

Every day, many people find themselves in one of life's most distressing situations - having a health care insurance claim denied. Sadly, it's a fact of life that our healthcare system routinely results in denied claims for medical services and care that people need and probably should be entitled to under their existing insurance policy. What should you do if a healthcare insurance claim of yours is denied?

Well, there is more and more public momentum toward cleaning up health care and claims denials. Robyn Shelton writes in the Orlando Sentinel that if you are denied a health insurance claim, "you should appeal." She goes on to write:

"First off: Don't panic. Many claims are rejected initially for glitches that can be sorted out rather easily. Do not pay a bill without making some calls." Read more...

In her article "The Health-Care Crisis Hits Home," Karen Tumulty recounts her family's ordeal as her brother had to fight the twin battles of kidney disease and a denial of his insurance coverage. Stories like these are all too familiar to millions of people:

"The unforeseen was exactly what turned up when Pat went in for a physical on Nov. 30, 2007, his first in five years. The doctor found high levels of blood and protein in his urine, results that were confirmed in another round of tests in December. Soon after that, Pat discovered that his urine had turned brown and foamy. In the middle of all this, he was laid off from his job, and finding a new one while doing temp work was his most pressing concern...That's when Pat, who is now 54, learned that his kidneys were failing.
The diagnosis was only the first shock. The second came a few weeks later, in an Aug. 5 letter from Pat's health-insurance company (denying his claim). For six years — since losing the last job he had that provided medical coverage — Pat had been faithfully paying premiums to Assurant Health, buying a series of six-month medical policies, one after the other, always hoping he would soon find a job that would include health coverage...The previous four weeks had left my brother with more than $14,000 in bills from hospitals, doctors and labs..." Read more...

If you are facing an insurance claim denial, you can follow a few simple steps to first become informed about your rights, and second, fight the claims denial yourself, with the assistance of government agencies, and, if needed, your own lawyer.

Start Your Medical Claims Denial of Benefits Appeal

Find a Lawyer to Help with Insurance Claims and Personal Injury

Avoid the Tax Reaper with the 2009 Tax Savings Guide - Tax Tips to Save You Time and Money

2009-02-11T10:47:00.001-08:00

Now more than ever, many people need good tax advice due to the economic downturn. Whatever your situation, the new Rocket Lawyer Tax Savings Guide can help you understand basic tax terminology and point you in the right direction. This year, RocketLawyer.com has partnered with H&R Block to bring the latest tax savings information directly to Rocket Lawyer members.

The Tax Savings Guide can help you with the following important tax issues:

Tax Deductions and Credits
Marriage and Divorce Taxes
Home Ownership Taxes
Children and Dependents Tax Issues
Retirement and Investment Tax Issues
Taxes and Your Work

Plus, you can do your taxes yourself with a significant discount online, as a Rocket Lawyer member. Just click the Taxes link in your account, or visit to http://www.rockettax.com/

You can click here to find a tax lawyer to help you with your tax matters.

Did you see H&R Block's Super Bowl ad? Avoid the reaper and file your taxes online:-)

Lawyers add Easy Legal Documents to any Website and Blog

2009-01-22T11:47:00.000-08:00

We're happy to announce that any lawyer can now add a customized easy legal document service to any attorney website or blog! It's simple, just click the link on this widget to get started and add value for every legal website or blog visitor who is looking for do it yourself legal documents.

Plus - whenever anyone needs help with a document, Rocket Lawyer's patent-pending Click-through Legal Review(TM) system can automatically route clients to their favorite attorney to deliver the legal services they need on the spot. For lawyers, adding the legal document service to your site or blog can be another important step toward establishing full service relationships with clients for a lifetime.

Planning Your Estate - Estate Taxes are Here to Stay

2009-01-12T07:14:00.001-08:00

According to the Wall Street Journal and other news reports, the Obama administration and congress are planning "to move soon to block the estate tax from disappearing in 2010, suggesting the levy might outlive the 'Death Tax Repeal' movement that has worked against estate taxes for many years. Approved by President Bush and congress in 2001, elimination of most inheritance taxes has been phased-in over several years, pending full abolition of such levies as of 2010; however, again, according to a Wall Street Journal article, "the Senate Finance Committee will move within weeks" to reverse the Bush law, in order to preserve the estate tax.

Based on the WSJ report, there are a couple of likely scenarios:

On the other hand, if congress were to roll-back the estate tax rate to the levels seen during the Clinton administration, then the first $1 million would be exempted from taxation with the remainder of the estate taxed at 55%.

Now is the time to engage in your own estate planning. There are several tactics that you can employ to reduce the exposure of your estate to taxation while providing for your charitable interests and love ones. RocketLawyer.com's Estate Planning Legal Help is a good place to start, along with creating your own trust and finding an estate planning lawyer to help you.

How to File for Unemployment Benefits

2008-12-01T04:42:00.000-08:00

In response to the economic crisis and rising joblessness, Congress recently enacted an extension to the eligibility time frame for unemployment insurance benefits.

If you have been laid off or otherwise think that you qualify for unemployment benefits, you may be able to apply online, or in most cases, at least by phone, in your state without needing to visit a state office directly. Many states now support electronic access to unemployment claim forms and help. As a first stop, visit the Rocket Lawyer State Law Legal Help, find your state and proceed to the Employment section.

Rocket Lawyer can also help you find a labor lawyer to assist with unemployment or workers compensation matters.

Labor Lawyers of Dunn & Sheldrick, PS
Oregon and Washington State

Rocket Lawyer to Preview Web Law Office 2.0 at SaaS Conference

2008-11-15T07:23:00.000-08:00

Thanks to the support and feedback of our members, RocketLawyer.com has been selected to deliver a company Preview presentation at this year's SIIA OnDemand Software as a Service conference. SIIA OnDemand is widely viewed as the premier industry gathering for the SaaS market, with attendees from Salesforce.com, IBM, Oracle and many other companies, media and technology investors. According to SIIA's announcement, Rocket Lawyer was "chosen by the Software & Information Industry Association from among 82 candidate companies for the opportunity to present their products and services to OnDemand Conference Attendees."

You can read the full announcement here: SIIA Announces Its 2008 Previews Company Selections

The Rocket Lawyer Web Law Office(tm) is the easiest way for lawyers to produce legal documents in collaboration with new and existing clients, other counsel and other parties. Stay tuned for our official Web Law Office 2.0 announcement Tuesday morning, and thanks again for helping us make Rocket Lawyer work better for everyone!

What the New Government Means for You

2008-11-05T07:51:00.000-08:00

Now that the election is over, Rocket Lawyer will work to help you understand what the transition to a new government, led by President-elect Obama and the new congress, will mean for you and your family, your business or your law practice. The election results clearly indicate that next year will be marked by change. We can certainly expect a flurry of legislation targeted toward economic recovery, potentially including sweeping action on taxation, health care, energy and education.

How can you plan for the new government? What opportunities and risks will emerge in the coming months as a result of America's new political direction? These are important questions that Rocket Lawyer will help answer. The Rocket Lawyer Free Legal Help center will continue to be a good place to find simple answers to your legal questions.

We plan to be very active on behalf of consumers, small business owners and legal professionals. We'll be asking for your opinions so that we can understand how best to serve you. We hope that you will take the time to complete our survey and tell us what you think and what legal services and information you need, in this time of change.

As always, thank you for using RocketLawyer.com.

President-elect Obama:

How and Where to Vote

2008-11-03T08:11:00.000-08:00

Voting is perhaps our most fundamental legal right. Rocket Lawyer's State Law Legal Help center has links to every official state site. From there, look for your Secretary of State page to find essential voting information to help you get to the polls!

Google's US Voter Info map can help you find your polling place in all fifty states.

SmartVoter.org is also a great source of information, from the League of Women Voters.

- You can find your personal ballot and polling location
- Browse every election and find particular candidates
- Find a list of other helpful election-related links

Whatever you do, remember to vote and exercise your most important legal right.

And hey, Starbuck's is even giving away a free cup of coffee, so we can all caffeinate after staying up late reading about the issues and getting up early to cast our ballots!

An easy Employment Verification Letter

2008-10-20T11:19:00.001-07:00

Use this simple form to respond to a request from a bank or creditor of an employee to verify the employee's employment with your business.

When employees need a verification of employment, the business owner or manager is typically asked, either verbally or in writing to confirm certain information about the employee's status with the organization.

An easy way to comply is to use the Employment Verification Letter document available for free at RocketLawyer.com. If you are a business manager or owner, you will also find many other useful legal forms, documents and letters for human relations and employee management.

A Home Sale Worksheet Can Make Selling Your House Easier

2008-10-08T15:09:00.000-07:00

In a tough real estate market like this one, being prepared and organized can help you to maximize your chances of getting the most the value of your home and avoiding problems during the home sale process. Suprisingly to many, pending home sales rose by 7.4% in the most recent monthly report, according to the Wall Street Journal. The report goes on to say that perhaps lower interest rates and lower home prices are beginning to make homes affordable enough to enable the over-all home sale market to improve.

If you are selling a home, you can use the Rocket Lawyer Home Sale Worksheet to organize your home sale process.

You can also use your Rocket Lawyer account to store all of your important home sale paperwork in the File Safekeeper. In fact, File Safekeeper is a great place to store all of your important legal documents for a lifetime.

Once your home sale and home ownership documents are securely uploaded to your Rocket Lawyer account, you can share them online with family, brokers, lawyers and anyone else that you would like to give secure access to your legal documents.

In this video, Attorney Arthur Miller discusses when a lawyer is needed when buying or selling a house.

Good luck with your home sale!

Property owner and landlord toolkit for a tough economy.

2008-09-30T10:58:00.000-07:00

If you are a property owner or property manager you already know that economic conditions are difficult for landlords. Here is a list of legal documents that can help landlords to protect themselves and their property against late rent, failure of tenants to pay rent altogether and other pitfalls of the slow economy.

Have every tenant sign a lease that has the protections landlords need. A good lease should provide for landlord entry to the premises, clear due dates for rent payments and clear and lawful penalties for failure of the tenant to adhere to the terms of the lease. Most of the up front work for a good lease can be done by the landlord; however, it is a good idea to engage a real estate attorney to help you when you need it.

You can find good sample lease legal forms here, that will create the obligations on the part of the tenant that you need to protect yourself as the property owner.

Here is a good sample of a landlord's notice to enter a tenant's premises.

If a tenant pays the rent late, send a late rent notice like this one to the tenant to demand that the rent be paid, along with any late fees or other penalties provided by the lease agreement. Keep a record of all late notices. A good way to do that is by keeping all of your legal documents stored in the Rocket Lawyer File Safekeeper^TM

If unfortunately, you need to evict a tenant, this eviction notice worksheet, plus an attorney can help you to do so.

Shaun Boss is a California lawyer available for a free initial consultation via RocketLawyer.com.

Click here to visit his Legal Profile and contact this attorney for your real estate legal matter.

Understanding the Wall Street Bailout Plan, aka the Emergency Economic Stabilization Act of 2008

2008-09-28T21:12:00.000-07:00

Today, the U.S. House of Representatives issued a draft of the rescue plan intended to restore stability to American financial markets.

The plan is expected to be debated in the House of Representatives on Monday. If passed in the House, the bill will be considered and potentially passed by the Senate as early as Wednesday and available for the President's signature to become law shortly thereafter.

A summary of plan is reprinted below. You can download a full version here: /bailout-bill.pdf

You can contact your elected officials and tell them what you think of the plan using the RocketLawyer.com Letter to a Government Official form. Completed letters to congress can be sent via U.S. Mail or online via: https://forms.house.gov/wyr/welcome.shtml

According to The Swamp, here is a section by section analysis of the provisions of the Emergency Economic Stabilization Act of 2008, aka the Wall Street Bailout legislation:

Section 1. Short Title.
"Emergency Economic Stabilization Act of 2008."

Section 2. Purposes.
Provides authority to the Treasury Secretary to restore liquidity and stability to the U.S. financial system and to ensure the economic well-being of Americans.

Section 3. Definitions.
Contains various definitions used under this Act.

Title I. Troubled Assets Relief Program.

Section 101. Purchases of Troubled Assets.
Authorizes the Secretary to establish a Troubled Asset Relief Program ("TARP") to purchase troubled assets from financial institutions. Establishes an Office of Financial Stability within the Treasury Department to implement the TARP in consultation with the Board of Governors of the Federal Reserve System, the FDIC, the Comptroller of the Currency, the Director of the Office of Thrift Supervision and the Secretary of Housing and Urban Development.

Requires the Treasury Secretary to establish guidelines and policies to carry out the purposes of this Act. Includes provisions to prevent unjust enrichment by participants of the program.

Section 102. Insurance of Troubled Assets.
If the Secretary establishes the TARP program, the Secretary is required to establish a program to guarantee troubled assets of financial institutions.

The Secretary is required to establish risk-based premiums for such guarantees sufficient to cover anticipated claims. The Secretary must report to Congress on the establishment of the guarantee program.

Section 103. Considerations.
In using authority under this Act, the Treasury Secretary is required to take a number of considerations into account, including the interests of taxpayers, minimizing the impact on the national debt, providing stability to the financial markets, preserving home ownership, the needs of all financial institutions regardless of size or other characteristics, and the needs of local communities. Requires the Secretary to examine the long-term viability of an institution in determining whether to directly purchase assets under the TARP.

Section 104. Financial Stability Oversight Board.
This section establishes the Financial Stability Oversight Board to review and make recommendations regarding the exercise of authority under this Act. In addition, the Board must ensure that the policies implemented by the Secretary protect taxpayers, are in the economic interests of the United States, and are in accordance with this Act.

The Board is comprised of the Chairman of the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, the Director of the Federal Home Finance Agency, the Chairman of the Securities and Exchange Commission and the Secretary of the Department of Housing and Urban Development.

Section 105. Reports.
Monthly Reports: Within 60 days of the first exercise of authority under this Act and every month thereafter, the Secretary is required to report to Congress its activities under TARP, including detailed financial statements.

Tranche Reports: For every $50 billion in assets purchased, the Secretary is required to report to Congress a detailed description of all transactions, a description of the pricing mechanisms used, and justifications for the financial terms of such transactions.

Regulatory Modernization Report: Prior to April 30, 2009, the Secretary is required to submit a report to Congress on the current state of the financial markets, the effectiveness of the financial regulatory system, and to provide any recommendations.

Section 106. Rights; Management; Sale of Troubled Assets; Revenues and Sale Proceeds.
Establishes the right of the Secretary to exercise authorities under this Act at any time. Provides the Secretary with the authority to manage troubled assets, including the ability to determine the terms and conditions associated with the disposition of troubled assets. Requires profits from the sale of troubled assets to be used to pay down the national debt.

Section 107. Contracting Procedures.
Allows the Secretary to waive provisions of the Federal Acquisition Regulation where compelling circumstances make compliance contrary to the public interest. Such waivers must be reported to Congress within 7 days. If provisions related to minority contracting are waived, the Secretary must develop alternate procedures to ensure the inclusion of minority contractors.

Allows the FDIC to be selected as an asset manager for residential mortgage loans and mortgage-backed securities.

Section 108. Conflicts of Interest.
The Secretary is required to issue regulations or guidelines to manage or prohibit conflicts of interest in the administration of the program.

Section 109. Foreclosure Mitigation Efforts.
For mortgages and mortgage-backed securities acquired through TARP, the Secretary must implement a plan to mitigate foreclosures and to encourage servicers of mortgages to modify loans through Hope for Homeowners and other programs. Allows the Secretary to use loan guarantees and credit enhancement to avoid foreclosures. Requires the Secretary to coordinate with other federal entities that hold troubled assets in order to identify opportunities to modify loans, considering net present value to the taxpayer.

Section 110. Assistance to Homeowners.
Requires federal entities that hold mortgages and mortgage-backed securities, including the Federal Housing Finance Agency, the FDIC, and the Federal Reserve to develop plans to minimize foreclosures. Requires federal entities to work with servicers to encourage loan modifications, considering net present value to the taxpayer.

Section 111. Executive Compensation and Corporate Governance.
Provides that Treasury will promulgate executive compensation rules governing financial institutions that sell it troubled assets. Where Treasury buys assets directly, the institution must observe standards limiting incentives, allowing clawback and prohibiting golden parachutes. When Treasury buys assets at auction, an institution that has sold more than $300 million in assets is subject to additional taxes, including a 20% excise tax on golden parachute payments triggered by events other than retirement, and tax deduction limits for compensation limits above $500,000.

Section 112. Coordination With Foreign Authorities and Central Banks.
Requires the Secretary to coordinate with foreign authorities and central banks to establish programs similar to TARP.

Section 113. Minimization of Long-Term Costs and Maximization of Benefits for Taxpayers.
In order to cover losses and administrative costs, as well as to allow taxpayers to share in equity appreciation, requires that the Treasury receive non-voting warrants from participating financial institutions.

Section 114. Market Transparency.
48-hour Reporting Requirement: The Secretary is required, within 2 business days of exercising authority under this Act, to publicly disclose the details of any transaction.

Section 115. Graduated Authorization to Purchase.
Authorizes the full $700 billion as requested by the Treasury Secretary for implementation of TARP. Allows the Secretary to immediately use up to $250 billion in authority under this Act. Upon a Presidential certification of need, the Secretary may access an additional $100 billion. The final $350 billion may be accessed if the President transmits a written report to Congress requesting such authority. The Secretary may use this additional authority unless within 15 days Congress passes a joint resolution of disapproval which may be considered on an expedited basis.

Section 116. Oversight and Audits.
Requires the Comptroller General of the United States to conduct ongoing oversight of the activities and performance of TARP, and to report every 60 days to Congress. The Comptroller General is required to conduct an annual audit of TARP. In addition, TARP is required to establish and maintain an effective system of internal controls.

Section 117. Study and Report on Margin Authority.
Directs the Comptroller General to conduct a study and report back to Congress on the role in which leverage and sudden deleveraging of financial institutions was a factor behind the current financial crisis.

Section 118. Funding.
Provides for the authorization and appropriation of funds consistent with Section 115.

Section 119. Judicial Review and Related Matters.

Provides standards for judicial review, including injunctive and other relief, to ensure that the actions of the Secretary are not arbitrary, capricious, or not in accordance with law.

Section 120. Termination of Authority.
Provides that the authorities to purchase and guarantee assets terminate on December 31, 2009. The Secretary may extend the authority for an additional year upon certification of need to Congress.

Section 121. Special Inspector General for the Troubled Asset Relief Program.
Establishes the Office of the Special Inspector General for the Troubled Asset Relief Program to conduct, supervise, and coordinate audits and investigations of the actions undertaken by the Secretary under this Act. The Special Inspector General is required to submit a quarterly report to Congress summarizing its activities and the activities of the Secretary under this Act.

Section 122. Increase in the Statutory Limit on the Public Debt.
Raises the debt ceiling from $10 trillion to $11.3 trillion.

Section 123. Credit Reform.
Details the manner in which the legislation will be treated for budgetary purposes under the

Federal Credit Reform Act.

Section 124. Hope for Homeowners Amendments.
Strengthens the Hope for Homeowners program to increase eligibility and improve the tools available to prevent foreclosures.

Section 125. Congressional Oversight Panel.
Establishes a Congressional Oversight Panel to review the state of the financial markets, the regulatory system, and the use of authority under TARP. The panel is required to report to Congress every 30 days and to submit a special report on regulatory reform prior to January 20, 2009. The panel will consist of 5 outside experts appointed by the House and Senate Minority and Majority leadership.

Section 126. FDIC Enforcement Enhancement.
Prohibits the misuse of the FDIC logo and name to falsely represent that deposits are insured. Strengthens enforcement by appropriate federal banking agencies, and allows the FDIC to take enforcement action against any person or institution where the banking agency has not acted.

Section 127. Cooperation With the FBI.
Requires any federal financial regulatory agency to cooperate with the FBI and other law enforcement agencies investigating fraud, misrepresentation, and malfeasance with respect to development, advertising, and sale of financial products.

Section 128. Acceleration of Effective Date.
Provides the Federal Reserve with the ability to pay interest on reserves.

Section 129. Disclosures on Exercise of Loan Authority.
Requires the Federal Reserve to provide a detailed report to Congress, in an expedited manner, upon the use of its emergency lending authority under Section 13(3) of the Federal Reserve Act.

Section 130. Technical Corrections.
Makes technical corrections to the Truth in Lending Act.

Section 131. Exchange Stabilization Fund Reimbursement.
Protects the Exchange Stabilization Fund from incurring any losses due to the temporary money market mutual fund guarantee by requiring the program created in this Act to reimburse the Fund. Prohibits any future use of the Fund for any guarantee program for the money market mutual fund industry.

Section 132. Authority to Suspend Mark-to-Market Accounting.
Restates the Securities and Exchange Commission's authority to suspend the application of Statement Number 157 of the Financial Accounting Standards Board if the SEC determines that it is in the public interest and protects investors.

Section 133. Study on Mark-to-Market Accounting.
Requires the SEC, in consultation with the Federal Reserve and the Treasury, to conduct a study on mark-to-market accounting standards as provided in FAS 157, including its effects on balance sheets, impact on the quality of financial information, and other matters, and to report to Congress within 90 days on its findings.

Section 134. Recoupment.
Requires that in 5 years, the President submit to the Congress a proposal that recoups from the financial industry any projected losses to the taxpayer.

Section 135. Preservation of Authority.
Clarifies that nothing in this Act shall limit the authority of the Secretary or the Federal Reserve under any other provision of law.

Title II--Budget-Related Provisions

Section 201. Information for Congressional Support Agencies.
Requires that information used by the Treasury Secretary in connection with activities under this Act be made available to CBO and JCT.

Section 202. Reports by the Office of Management and Budget and the Congressional Budget Office.
Requires CBO and OMB to report cost estimates and related information to Congress and the President regarding the authorities that the Secretary of the Treasury has exercised under the Act.

Section 203. Analysis in President's Budget.
Requires that the President include in his annual budget submission to the Congress certain analyses and estimates relating to costs incurred as a result of the Act; and

Section 204. Emergency Treatment.
Specifies scoring of the Act for purposes of budget enforcement.

Title III--Tax Provisions

Section 301. Gain or Loss From Sale or Exchange of Certain Preferred Stock.
Details certain changes in the tax treatment of losses on the preferred stock of certain GSEs for financial institutions.

Section 302. Special Rules for Tax Treatment of Executive Compensation of Employers Participating in the Troubled Assets Relief Program.
Applies limits on executive compensation and golden parachutes for certain executives of employers who participate in the auction program.

Section 303. Extension of Exclusion of Income From Discharge of Qualified Principal Residence Indebtedness.
Extends current law tax forgiveness on the cancellation of mortgage debt.

It's Easier than ever to Contact Your Government

2008-09-10T08:46:00.000-07:00

How do you contact your local, state and federal government? While the political season brings a lot of attention to government, most people and businesses have every day reasons to interact with their local, state and federal agencies. Here are some tips and sites that can help you contact your government.

RocketLawyer.com's Free Legal Help centers can guide you to many government resources. The Federal Law Legal Help center has links to USA.gov and popular federal agencies. USA.gov has frequently asked questions (FAQs) and links to help you contact your federal elected officials. State Law Legal Help center has a listing of all fifty state government web sites and convenient links to state and local government resources. RocketLawyer.com also offers many free form letters for various government-related correspondence.

If you want a template to help you draft your own letter to a government official, you can use the Rocket Lawyer legal document interview to make a custom letter and send it via U.S. Mail, email or directly online, using one of the web sites noted in this article.

Here's a photo we took during the Democratic convention in Denver. Governor Janet Napolitano of Arizona is discussing clean energy initiatives. Get involved. Remember, your government is supposed to work for YOU!

Senator Obama proposes eliminating the capital gains tax on Small Business

2008-09-02T14:14:00.000-07:00

From the Democratic National Convention...Part I

Note: RocketLawyer.com's Legally Easy blog is covering both political parties and their proposals for small business and consumer legal policy.

One of the interesting lines in Senator Obama's acceptance speech was his reference to eliminating the capital gains tax on Small Business. Generally, we like any legislation that helps people start businesses and run them profitably.

So, what would the Obama proposal change?

Currently, according to IRS.gov, "The taxable part of a gain from qualified small business stock is taxed at a maximum 28% rate."

Stay tuned for more on the subject of small business taxes, employee legal issues and starting a business.

If you are looking for an easy way to incorporate your business as a corporation or by forming an LLC, try Rocket Lawyer.com's Easy Incorporation Service.

If you need to create business contracts for customers, consultants and employees, try a Rocket Lawyer professional membership and get business legal forms for free!

Incorporating Yourself Can be Easy and Inexpensive

2008-08-08T07:45:00.000-07:00

Do you run a small business, partnership or non-profit activity? If you are operating as a sole proprietorship, without the protection of a legal entity, you should consider limiting your liability and risk by incorporating. Incorporation is now easy and inexpensive and you can do it yourself!

Operating a home based business or non-profit activity has many virtues. You can set your own hours, and you can avoid the hassles of commuting by working where you live. Using the Internet, you can serve your customers and clients any where in the world, without an expensive office.

Did you know, however, that if you are operating as a sole proprietorship, a dba, or in an otherwise non-incorporated status, you are risking significant liability that could include claims against your home and your other personal assets? Also, if you want to apply for business loans, or add partners, investors and employees, you should consider incorporation to form a legal company.

Incorporation is easy, if you use a service like RocketLawyer.com to help you incorporate yourself and save. You simply need to:

Go to http://www.RocketLawyer.com/incorporation.aspx
Select the form of organization. The following organizational forms may be chosen Pick the one that is right for your business or activity:

Corporation. A corporation is considered a "legal personality" and, when properly formed and administrated, provides limited liability to the owners. Corporations are taxed independently of the owners, creating the "double taxation" situation that business owners can seek to avoid with another form of organization, such as a Subchapter S-Corporation, an LLC or a Limited Partnership.
Subchapter S-Corporation. An S-Corp for federal income tax purposes is a corporation that elects in a valid filing, to be taxed pursuant to Subchapter S of Chapter 1 of the Internal Revenue Service (IRS) code. In the S-Corp context, the corporation does not pay taxes, but, instead the taxes of the corporation are allocated to the owners personally.
Limited Liability Company (LLC). A limited liability company is a business entity that combines features of both a corporation and a partnership. It is considered by many experts to be more flexible and a better fit for small companies than a corporation. An LLC can provide both limited liability and pass-through taxation, so that the owners can "pass-through" business profit and loss to their personal tax returns, avoiding the "double taxation" of a corporation.
Limited Partnership. In a partnership, the owners (partners) share the profits or losses of the business with each other. However, the partners may be held personally liable for the actions of the partnership to a greater extent than for a corporation or LLC.
Non Profit Corporation. A non profit entity is an incorporated organization that is not obligated to pay taxes, by statute, because it is, by its organization, not intended to provide a profit to its owners or members.

Enter the basic organizational information like owners' name(s), address, etc.

Once you have filled out the simple form to set up your new company, Rocket Lawyer's Easy Legal Care^TM service gives you everything you need to create corporate minutes, and hundreds of legal agreements to keep the legal side of your business operating smoothly.

If you need he assistance of a corporate lawyer, you can find a lawyer using your Rocket Lawyer Business Lawyer listings.

Our featured corporate attorney is Jay Parkhill of Virtual Law Partners LLP .

New Law Alert: HOPE for Homeowners - Housing and Foreclosure Relief Bill Becomes Law

2008-07-30T07:59:00.000-07:00

If you are one of the many homeowners looking for help, the new housing relief bill may provide mortgage relief that can help you avoid foreclosure. So, how do you apply for help under the new HOPE for Homeowners housing and foreclosure assistance law?

The housing relief bill almost certainly is the most robust housing legislation in decades, enabling homeowners who need help with their mortgage payments to refinance into more affordable loans, backed by the government. By taking advantage of this relief, many homeowners should be able to keep their homes.

According to Courant.com, "The program could help as many as 400,000 homeowners acrossthe country facing foreclosure. HOPE for Homeowners is voluntary, however, and both lender and borrower must agree to participate."

The HOPE for Homeowners program begins October 1 and the rules and procedures for implementing the bill are being written now. It will be administered by the Federal Housing Administration (FHA).

RocketLawyer.com will keep you informed as details of the foreclosure relief bill become clear.

Thinking about bankruptcy? Click here for an interactive bankruptcy worksheet.

Want to know which legal documents you need? Click here for your Free Legal Care Check-Up.

Here, Attorney Richard Gullen explains a typical foreclosure process: