Legal Aspects of International Trade

This report discusses the legal aspects of international trade and the legislative regulatory framework of Bank of America Corporation. It covers treaties, conventions, and agreements made by the bank. The report emphasizes the importance of following international trade laws for businesses to operate smoothly across borders.

Running head: REPORT 0
LEGAL ASPECTS OF INTERNATIONAL TRADE
MAY 3, 2019
STUDENT DETAILS:

REPORT 1
Executive summary
The International trade law refers to the set of rules, regulations, laws and agreements,
which administer trade between the nations. The International trade law establishes the
rules, which is required to be followed by the companies. The companies should adopt
these international trade laws in order to do businesses across the border. Moreover, this
is very necessary for the corporation to decrease the problems and difficulties about the
intellectual property and to retain controls over the assets and brands of the corporations.
The corporation can remain competitive in the present markets by seeing proper
information in relation to the race as well as anti-trust law. This report states the treaties,
conventions, and agreements made by the Bank of America Corporation. In the following
parts, legislative regulatory framework of BOA Corporation is also discussed.

REPORT 2
Contents
Executive summary......................................................................................................1
Introduction...................................................................................................................3
Company overview.......................................................................................................3
Legislative regulatory framework..................................................................................3
Treaties, conventions, and agreements.......................................................................3
Conclusion....................................................................................................................3
References...................................................................................................................3

REPORT 3
Introduction
The international laws provide to increase the international trading and investment. The
international law encourages the success in foreign markets. This is very essential to see
how to follow different laws in various markets and complete all the transactions and
agreements without preventable difficulties and complexities. By following the international
law, an organisation would be capable to know the basic legislative principles involved in
the business conducted abroad (Bhala, 2015). The corporation would also ignore the legal
battles by identifying the basic obligations and rights of the buyers and sellers framed with
the help of foreign rules and regulations. This report states the legislative regulatory
framework of Bank of America Corporation. In this report, conventions, treaties and
agreements made by the bank is also assessed.
Company overview
Bank of America Corporation is one of the top financial institutions of the world. The bank
provides the wide-ranging investing services, financing services, services related to asset
management, and other risk management services and products to individual customers,
small market businesses, as well as middle market businesses. In addition, BOA
Corporation gives unmatched convenience in USA, serving about 66 million consumers
and small market businesses with about 4,400 retail centres. It include 1800 advancing
centres, 1500 business centres, 2200 financial centres with Consumer Investment
Financial Solution Advisors, 16,400 ATMs; and award-winning digital banking with
exceeding 37 million active users, involving above 27 million mobile users. The company
serves the customers by the operations across USA, its territories and about 35 nations.
The headquarter of Bank of America is located in Charlotte, North Carolina. Bank of
America Corporation has 2,04,489 employees in 2018 (Dempsey, 2017).
Legislative regulatory framework
The state laws and different bank regulatory agencies, such as Federal Deposit Insurance
Corporation, U.S. Treasury and Federal Reserve Board have made different amenities and
programs, involving, amongst others, Troubled Asset Relief Program of U.S Treasury and
Capital Purchase Program, made to support the banking and financial services sectors, as
mentioned in administrative initiatives in management discussion and analysis.
Additionally, the government of USA and Congress have continued to assess and make
legislatures, programmes and advantages created to stabilize economic and housing
marketplaces and stimulate the economies, involving ARRA that enhances governments
spending and renders taxation cut made to stimulate the economy, Financial Stability Plan
stated by U.S. Treasury and recently announced foreclosure prevention program by
government of USA. The final form of these programs or inventiveness or relevant laws,
the possibility and timings of the other prospective offers or laws, and the influence they
can have on the BOA Corporation and our subsidiaries may not be determined at this
period.
Bank of America as well as non-banking subsidiaries of bank are also greatly
administrated by the securities regulators at domestic level as well as at international level.
This legislative regulatory framework of BOA Corporation is made to secure the investors
in the sold securities and underwritten securities. Congress and state legislature,
international central regulatory agencies and international state regulatory agencies

REPORT 4
continually review laws, regulations, procedures, and rules to make relevant amendments.
The amendments to the rulings, laws, acts, regulations and administrative procedures,
involving explanation or application of the laws, rules, regulations and procedures can
influence the company in considerable and changeable manners involving restricting the
financial service’s kinds and the goods company can offer and enhancing the capacity of
nonbank to propose contending goods and financial services.
Further, the BOA Corporation is the individual and separate legal corporation from the
banking subsidiaries as well as nonbanking subsidiaries. The company is depended over
the dividends, allocation, and other disbursements from the nonbanking subsidiaries as
well as banking subsidiaries to finance the payment of dividend over the preferred and
common stock and to finance the payment on the other duties, involving the debt
obligations. Various subsidiaries of the companies are subject to the rules and regulations
that permit authoritative bodies to cut and decrease the fund’s flow from the subsidiaries to
a company. The administrative actions of that type can obstruct access to the finance the
company requires to pay on the duties or the payment of dividend. Additionally, a right of
company to take participation in the asset’s distribution upon the liquidation of subsidiary
or the identification is subject to the previous entitlements of the creditors of subsidiaries.
As the outcome of the continuing financial disaster and stimulating marketplace situations,
the company is expected to face advanced rules, regulations, regulatory actions, and
political analysis of the financial industries, involving the outcome of the involvement of
company in the ARRA, TARP Capital Purchase Programs, and the Financial Stability Plan
of the U.S. Treasury. As part of the Financial Stability Plan’s new Capital Assistance
Program, the company would be subject to the progressive stress assessment to decide if
the company has the proper capital barrier to endure the influence of some financial
scenarios, including under financial situations more severe than the company recently
expect. The enhanced rules would permit the controllers to take decision whether the
company may need additional capital and the changes in a capital’s composition (Walker,
2016).
Furthermore, the compliance with these regulations and inspection can expressively
enhance the cost of company, impede the productiveness of the inner procedures related
to business, need the company to improve the governing capital and restrict the capability
of company to follow the opportunities of business in the proper way. It is also required by
the company to make the payment expressively of higher Federal Deposit Insurance
Corporation premium. The motive is that the market expansions have expressively
depleted the insurance funds of Federal Deposit Insurance Corporation and reduced the
ratios of reserve to enclosed deposits. The enhanced cost connected with predicted
administrative scrutiny as well as governmental scrutiny could influence the outcomes of
the functions (Flinchem, Patent Navigation Inc, 2017). Bank of America Corporation faces
the substantial permissible risk in the business of company, and claim’s quantities,
damage’s amount, drawbacks entitled in the legal actions, and governing proceedings
against financial institutions remain higher and are enhancing. Considerable legal liabilities
or substantial governing actions against BOA Corporation and its subsidiaries may have
substantial negative economic effects. It may cause the important harms to the image of
company that in turn can extremely damage the forecasts of business. Additionally, the
bank faces advanced legal risks as the outcome of Merrill Lynch purchase and latest
reduces in the security’s market prices. These laws, rules, and regulations can lead to
more instability of the stock prices of the company (Snyder, 2017).
Moreover, the incomes and business are influenced by foreign and local monetary and
fiscal policies. For an instance, the Federal Reserve Board administers the currency’s
supply and credits in USA. Besides, the policies determine in huge proportion, the

REPORT 5
company’s funds cost for advancing, financing, and capital floating actions and the returns
a company earn on those loans and investments, both of that influence the net interest
margins (Montgomery, et. al, 2018). The Federal Reserve Board’s activities also may
substantially influence the financial instrument’s value the company hold, for an example,
the rights of mortgage service and debt security and the procedures may influence the
mortgagors, possibly enhancing the risks, which they can fail for repayment of the loan.
The businesses and incomes of company also are affected by the monetary as well as
other policies, which are followed by different administrative authorities of USA, and the
government of other countries and international agencies. The modification in local and
foreign monetary as well as fiscal policy are beyond the controls and tough to forecast (Ku,
et. al, 2016).
Treaties, conventions, and agreements
One can understand the terms such as conventions, treaties, or agreements by the
website of Bank of America Corporation. The terms such as treaties, conventions, or
agreements create the legally binding agreements between the clients and Bank of
America Corporation. There have discussion as well as commentaries regarding the
possible significant changes to the tariffs, trading policies, laws and treaties (Mahadevia,
et. al, 2015).
In connection with various trading agreements, the Bank of America can be obligatory to
render additional securities in the events of the credit rating reduces. The Federal Reserve
has developed the Term Securities Lending Facilities and the loan facilities per week, to
encourage liquidness in U.S. Treasury or other security marketplaces and to substitute the
operations of the financial marketplaces (Addepalli, et. al, 2016). The programs offer
securities of U.S. Treasury kept by the System Open Market Accounts for the loans over
the 1-month period against other programs-eligible common collateral. The loan would be
awarded to the main suppliers based on economical biddings, subject to the least
requirements of fees. The Federal Reserve Bank’s Open Market Trading Desk in New
York, would auction general U.S. Treasury security kept by System Open Market Accounts
for loans against all security recently qualified for tri-parties repurchase agreement
managed by the Open Market Trading Desk of Federal Reserve Bank. The Bank of
America Corporation has used these facilities and has assured agency mortgage-backed
security and personal label mortgage-backed security as insurance (Young, 2016).
Additionally, under the offered agreement, the Federal Reserve would give liquidity for the
outstanding risks in the asset pool by the nonrecourse loans facilities (Kim and Samsung
Electronics Co Ltd, 2016). The BOA Corporation will be liable for the first ten billion dollars
in the loss on assets pool. Once other losses exceed this amount through eight billion
dollars we would be able to draw on the facilities. The loan facilities would end and the
relevant financed loans will developed on the end date of the assurance of governments of
America. It is anticipated by Federal Reserve to charge the fees of twenty bps annually
over the amount not drawn and the fluctuating interest rates of the overnight index swap
rates plus three hundred bps annually over the financed amounts. The fee payment as
well as interest payment will be with option to the BOA Corporation (Cullet, 2017).
Further, the Online Banking and Transfers outside BOA Service Agreement between the
bank and customers, N.A (Bank of America) regulates the utilisation of online banking
service and the transfer outside BOA corporation service. The online banking and transfer
outside BOA services allow U.S.-based BOA customers (customers as well as business
customers who are account holders) to perform various banking operations by utilisation of

REPORT 6
the personal computer or other devices such as smartphones or tablets, on account
connected to the services.
Furthermore, BOA Corporation has also announced the mutual funds agreements. These
mutual funds agreements state good faith efforts of BOA Corporation to solve the matters
and is in the customer’s best interest, associate’s best interest as well as in best interest of
shareholders. It is continually stated by the bank that the actions of certain people and
what happened is not representative of a manner BOA Corporation does business, and
the company has no patience for activities that interrupt the values. Through these
procedures, the company has collaborated completely with the inspecting authorities. As
per these agreements, BOA Corporation settles to make payment of 250 million dollars in
total compensation and disgorgement. Of this quantity, about 25 million dollars will go to
Nation Fund shareholders, subject to more discussion with Nation Fund Board of Trustees.
The remnants would be present to contribute to the settlement of stakeholders of other
funds that were damaged by the actions of others using system of BOA Corporation.
In relation to the wide reimbursement fund, the variety of additional companies, involving
various other difficulties related to mutual fund, settled market timing capability. Hedge
funds as well as the investors were the main agents and recipients of an inappropriate
marketplace timings and late trading actions. As per these agreements, BOA Corporation
might and would look for proper compensation from these people based on harms caused
by functions. The agreements also call for the bank to make payment of penalties of 125
million dollars and to decrease mutual fund handling fee by 80 million dollars above 5
years.
Conclusion
As per the above analysis, it can be concluded that the legal aspects of the international
trading state the difficult foreign legislative framework, which enables the businesses,
individuals, groups and governments of the nation to effectively and legally exchange the
relevant goods and services across the border. This is suggested to the corporation that it
must run the businesses simply and in smooth way as well as effectively through
considerably handling the legal issues and difficulties raising from E-commerce (Carr and
Stone, 2017).

REPORT 7
References
Addepalli, V., Bokil, A.A. and Melton, J.L., BANK OF AMERICA CORPORATION,
(2018) Interprogram Communication With Event Handling For Online Enhancements. U.S.
Patent Application 15/263,624.
Bhala, R. (2015) Dictionary of International Trade Law, (2015). New York: LexisNexis.
Carr, I. and Stone, P. (2017) International Trade Law. Cambridge: Cambridge University
Press.
Cullet, P. (2017) Differential treatment in international environmental law. New York:
Routledge.
Dempsey, A.L. (2017) Evolutions in Corporate Governance: towards an ethical framework
for business conduct. New York: Routledge.
Flinchem, E., Patent Navigation Inc, (2017) Enhancing bank card security with a mobile
device. U.S. Patent 9,569,772.
Kim, J.E., Samsung Electronics Co Ltd (2016) Display screen or portion thereof with icon.
U.S. Patent Application 29/489,385.
Ku, H.C., Trabona, D.M., Urdan, A.A., Wang, Y.H. and LaManna, M.H., Microsoft Corp,
(2016) Display screen or portion thereof with graphical user interface. U.S. Patent
Application 29/466,361.
Mahadevia, J.H., Sankhla, S.V., Malek, S.M., Shah, P.N., Modi, N.N. and Fifadra, J.J.,
Cyberoam Technologies Pvt. Ltd. (2015) Display screen of a communications terminal
with a graphical user interface with drop down box. U.S. Patent Application 29/420,070.
Montgomery, M., Cook, D. and Zeckoski, R., Bank of America Corporation (2018) Secure
packaging software and deployment system. U.S. Patent Application 15/081,893.
Snyder, J.D. (2017) No Need for Cities to Despair After Bank of America Corporation V.
City of Miami: How Patent Law Can Assist in Proving Predatory Loans Directly Cause
Municipal Blight Under the Fair Housing Act. Me. L. Rev., 70, p.63.
Walker, R. (2016) Bank of america: Consumers fight back. New York: Springer
Young, M.A. (2016) International trade law compatibility of market-related measures to
combat illegal, unreported and unregulated (IUU) fishing. Marine Policy, 69, pp. 209-219.