News
More Thoughts on Buying and Selling Loan Participations
Buying and selling loan participations have long been common in the banking business. As the seller of loan participations, a bank may use the practice as a tool for complying with legal lending limits or internally imposed loan limits. Whether as a buyer or seller, a...
DOL Appeals Decision Vacating Final Rule: Employers’ Next Steps
On November 26, 2024, the U.S. Department of Labor (“DOL”) filed a notice of appeal seeking to overturn Texas v. U.S. Department of Labor, No. 4:24-cv-499-SDJ (E.D. Tex. Nov. 15, 2024), where a federal court vacated the DOL’s 2024 Final Rule increasing the salary...
December 31 Proclaimed Douglas J. Hajek Day in Sioux Falls
Doug Hajek thought his last day at Davenport, Evans, Hurwitz & Smith was going to be a quiet one. He stopped by desks to say farewells and thank yous, as a man of his kindness and integrity is known to do. He made some last phone calls and accepted a few from...
The Food Security Act and Liens on Farm Products: An Illustration for Bankers
The federal Food Security Act (FSA) provides that a purchaser of farm products can take the products free of a security interest created by the seller unless a secured party takes certain actions to protect its lien. The options available to a secured creditor depend...
2025 Estate Gift Tax Exclusions
UPDATE: The One Big Beautiful Bill Act, Pub. L. 119-21, signed into law in July 2025, permanently increases the lifetime estate exclusion amount to $15,000,000 for decedents dying in 2026 and later years. The lifetime estate exclusion amount (also sometimes called the...
Financing Statements and Collateral Description Reminders
When we were kids, we simply called "Dibs!" or "Shotgun!" to stake a claim on what we felt was ours. Secured creditors don’t have it so easy. Instead, secured creditors must properly perfect their security interests in order to protect themselves from future creditors...
Contract for Deed Sellers, Read Up On Regulation Z
Contracts for deed are a mechanism by which the owner of real property may provide seller financing to a buyer to facilitate the sale of real property. On August 13, 2024, the Consumer Financial Protection Bureau (CFPB) issued an “Advisory Opinion” in which the CFPB...
EEOC Releases Updated Workplace Harassment Guidance
On April 25, 2024, the Equal Employment Opportunity Commission (“EEOC”) issued an updated “Enforcement Guidance” concerning workplace harassment. These guidelines are the first from the EEOC in over two decades and are designed to address societal developments caused...
Davenport Evans Welcomes Connor R. Shaull
Davenport, Evans, Hurwitz & Smith, LLP is pleased to announce the addition of a new attorney, Connor R. Shaull, to the firm. Connor Shaull is a commercial litigation attorney at Davenport Evans. Originally from Tea, South Dakota, Connor joined the firm in 2024. He...
Davenport Evans Welcomes Sydney P. Boots
Davenport, Evans, Hurwitz & Smith, LLP is pleased to announce the addition of a new attorney, Sydney P. Boots, to the firm. Sydney Boots is a member of the Davenport Evans litigation section. His practice includes a wide variety of civil litigation. Claiming two...
Davenport Evans Welcomes Trevor D. Case
Davenport, Evans, Hurwitz & Smith, LLP is pleased to announce the addition of a new attorney, Trevor D. Case, to the firm. A native of Webster, South Dakota, Trevor is a member of the Davenport Evans Transactions and General Business practice group. Trevor joined...
Davenport Evans Welcomes Preston J. Tetzlaff
Davenport, Evans, Hurwitz & Smith, LLP is pleased to announce the addition of a new attorney, Preston J. Tetzlaff, to the firm. Preston Tetzlaff is a member of the Davenport Evans Banking and Financial Services Practice group. Preston is a native of Brookings, SD...
The End of Chevron: What Employers Should Know
The Chevron two-step sounds like a dance, but in reality, it stood for the long-standing doctrine of judicial deference to a federal agency’s interpretation of statutes. In Chevron USA, Inc. v. Natural Resources Defense Council, Inc., the United States Supreme Court...
Non-Compete Agreements Need a Closer Look
Update: On August 20, 2024, a federal judge in Texas struck down the Federal Trade Commission’s rule banning non-compete agreements. Since this ruling has nationwide effect, employers will no longer be required under federal law to rescind existing non-compete...
Hajek to Moderate Panel at South Dakota Land and Lending Conference
Davenport Evans lawyer Doug Hajek* moderated a panel on Lending: Conditions in the bank-lending channel, October 15 from 2-3 p.m. at the South Dakota Land and Lending Conference in Sioux Falls. Lending panelists include: Karl Adam, president, South Dakota Bankers...
CFPB Issues Guidance Covering Buy Now Pay Later Lenders
In 2022, the Consumer Financial Protection Bureau (CFPB) published a report on market trends in the “Buy Now, Pay Later” (BNPL) industry. Based on a study of the industry from 2019-2021, the report noted a 970% increase in the number of BNPL loans originated in the...
FTC’s Ban on Non-Competition Agreements
On April 23, 2024, the Federal Trade Commission (“FTC”) announced its final rule prohibiting employers from entering into, enforcing, or attempting to enforce post-employment non-compete clauses (the “FTC Rule”). Subject to a limited exception, the FTC Rule will also...
State Banks and Interstate Lending: The Playing Field Could Become Uneven
UPDATED from the print article published by the Independent Community Bankers of South Dakota, (www.icbsd.com, The Bottom Line, Vol. 2, 2024, Pages 26-27): The federal District Court in Colorado has been handling litigation challenging the Colorado DIDMCA opt-out...
Announcing 2024 Davenport Evans Scholarship Recipients
Davenport Evans has announced its 2024 scholarship recipients. For over 35 years, the firm has awarded eight annual scholarships totaling $20,000 to be used at institutions of higher learning in the state of South Dakota. Scholarships are awarded through the Sioux...
DO YOU DO FBO?
The recent bankruptcy filing of Synapse Financial Technologies highlights the risks to banks of establishing “for the benefit of” or “FBO” accounts. Synapse operated a fintech platform used by over 100 different fintech partners. Using Synapse’s platform, the fintech...
DOL Increases Salary Thresholds for Exempt Employees
On April 23, 2024, the United States Department of Labor (“DOL”) issued its Final Rule regarding exempt workers under the Fair Labor Standards Act (“FLSA”). The Final Rule significantly raises the minimum salary thresholds for employees to be considered exempt from...
Banking Highlights from the 2024 South Dakota Legislative Session
The 2024 South Dakota legislative session addressed a number of items and issues, with much time focusing on budgets and pipeline concerns. However, the legislature each year considers many bills, most of which do not make the headlines but do affect bankers and their...
Davenport Evans Welcomes 2024 Summer Associates
Davenport Evans is pleased to welcome its 2024 summer associate class, (as shown, left to right:) Noah R. Reeves, Victoria M. Mendoza, Ann L. Madson, and Tyler J. Arend. Davenport Evans has a long history of hiring law students who participate in the firm’s summer...
OFAC Compliance: A Risk-Based Approach
OFAC - “What is that, and do I care?” The answer to the latter question should be a resounding “Yes” if you are in bank management, compliance, account on-boarding, or transaction monitoring. OFAC, the acronym for the Office of Foreign Assets Control of the U.S....