On October 22, 2007, the IRS released Notice 2007-86, providing broad relief from the documentary compliance requirements for deferred compensation arrangements subject to Internal Revenue Code Section 409A through December 31, 2008. Notice 2007-86 supersedes IRS Notice 2007-78 released just six weeks earlier, which had provided more limited relief. The new notice was issued in response to a barrage of complaints that the limited relief provided under the September notice was insufficient to prevent widespread compliance problems given the difficulty of satisfying even its minimal requirements.

Unilateral Arbitration Provisions in Consumer Mortgage Loans Upheld

by Evan C. Pappas

The Supreme Court of Pennsylvania, in Salley v. Option One Mortgage Corp., recently upheld a mortgage company's right to enforce a "one-sided" arbitration provision in a loan agreement with a consumer. The agreement in question required the borrower to proceed with any claim against the mortgage company through arbitration while allowing the mortgage company to bring suit against the borrower in state or federal court. The effect of Salley has been to vindicate the use of such non-reciprocal provisions in Pennsylvania consumer mortgage loan agreements.

Upcoming Events

October 28 - 30

Steve Lovejoy will be speaking on the "Federal Real Estate Settlement Procedures Act" and the "Federal Truth in Lending Act" at the Mortgage Bankers Association of Pennsylvania Conference taking place at the Hershey Lodge in Hershey, PA.

November 14 & 16

The firm will present its 2008 Securities Compliance Seminar on November 14 at the Sheraton Four Points in Mars, PA and on November 16 at the Wyndham Garden Hotel in Harrisburg, PA. The program will feature discussions of recent accounting pronouncements affecting reporting companies; new electronic proxy rules; executive compensation disclosure requirements update; audit standards and internal and external audit issues; Sarbanes Oxley update; deferred compensation compliance update; and disclosure issues in potential acquisition situations. Presenting will be firm attorneys Paul Adams, Jane Davis, Ruth Courtney and David Ledermann along with accounting and consulting experts from Parente Randolph, S. R. Snodgrass and McKonly & Asbury.

For more information or to register, contact Nancy Runk at 717.909.1658 or visit our website: www.shumakerwilliams.com

Recent Events

Keith Clark presented A Primer on Directors Recruitment, Orientation, Education and Service for the Directors Breakfast on September 10, and Martin Ellis presented Financial Fraud Protection Methods and Update on September 11, at the Pennsylvania Association of Community Bankers 2007 Annual Convention at the Hilton Waikoloa Village, Hawaii.

The firm held its annual Human Resources Seminar on October 16 at the West Shore Country Club in Camp Hill, PA. Featured topics included recent employment and benefits law developments; electronic information security, retention and disclosure requirements; controlling 401(k) fees and implementing new automatic enrollment procedures; and managing the hiring process, including background checks, proper utilization of assessments, hiring criteria and immigration enforcement issues. Speakers included firm attorneys Marc Tarlow, Craig Trebilcock, David Ledermann, Michael Rowan and John O'Donnell, and Janel Leymeister of Conrad Siegel Actuaries, Ginni Barley from the Credit Bureau of Lancaster County, John Sancenito of Information Network Associates and Ira Wolfe of Success Performance Solutions.