Classified Ads---Operations

N. Phoenix, Arizona Kathleen Gibbons-Erler will be available for hire as of July 15th, 2009. Eleven years experience in all office operations. kgibbons-erler@cox.net Resume

Lease Police.Com Strategic Alliance with Vision Commerce

December, 2006 Bernie Boettigheimer, CLP, a pioneer in the leasing industry, had finished his new software program and decided to come out of retirement with Lease Police. As he explained then:

"The LeasePolice.com online system provides users the unique ability to check the performance history of not just lessees and debtors, but also for vendors. For the first time, users can identify vendors/suppliers that have a higher incidence of producing leases and loans that default (due to non-payment). Another primary use of LeasePolice.com system is to provide early warning data that can help users avoid fraudulent activity."

Once he reached a database of 36,000, and also expanding and tweaking the system, his instantaneous record of vendor fraud, many moving from state to state, was readily available, as well as history of vendors who have a high record of defaults, although the lessee had very good to excellent credit, he was ready for one of his main goals: not just direct access to subscribers, but through leasing software providers. His first testing was with Jim Buckles of Preferred Business Solutions, Edmonds, Washington, which was successful.

Today he announces a strategic alliance with Vision Commerce, St. Charles, Missouri, a major leader in providing Microsoft .NET front-end automation solutions for finance and leasing companies. Vision Commerce will incorporate www.leasepolice.com web functions within the Vision Commerce product suite.

Under the agreement, Vision Commerce has integrated LeasePolice.Com services into the Vision platform through a secure web service. Mutual clients of Vision Commerce and Lease Police will have direct access to order vendor and lessee reports thereby eliminating the need to reenter inquiry information that already exists within the Vision system.

"We are continually looking for ways to enhance our services through collaboration with other industry leading products. Vision certainly fits these criteria, and as such we are looking forward to building on this relationship," said Lease Police President, Bernie Boettigheimer CLP.

Steve Lundergan, President of Vision Commerce noted, "Integrating this method of preventing potential fraud or conducting business with undesirable business partners will greatly benefit the long term financial health of our clients. We look forward to working with Bernie and his team for many years."

The LeasePolice.Com online system identifies vendors and lessees who are associated with a high incidence of defaults. In addition, users have the ability to report incidences of unusual or high risk behavior by vendors. Any confirmed unusual activity warnings are then posted in the database for future reference by users. By using the LeasePolice.com database, users can drastically reduce their exposure to fraudulent transactions, vendors using high risk sales strategies, and lessees with risky histories. To subscribe, go to www.leasepolice.com.

Vision Commerce, Inc. was created to serve the leasing and finance industries. Vision's goal is to provide its clients access to e-commerce solutions at an affordable price. The company's philosophy is that technology should automate routine processes and provide real-time information, but it can never replace industry experience and product knowledge. The leadership team offers finance industry experience, technology expertise and a commitment to listen to the customer. Vision Commerce is a closely held, employee-owned company.

For more information about Vision Commerce, call (866)707-9929 or visit www.visioncommerce.com

Triad Leasing & Financial, Boise, Idaho files BK

Triad Leasing & Financial, Inc., Boise, Idaho has filed a Chapter 11 Bankruptcy Voluntary Petition in the United States Bankruptcy Court, District of Idaho, to have a plan "Plan due by 12/2/2009. Disclosure Statement due by 12/2/2009. "

Started in 1996 as a basic local company the web site states "The Company now offers direct leasing, broker, and vendor services to all the lower 48 states, coast to coast. Triad attributes its success to superior service, a core staff of highly trained and experienced leasing professionals, and its ability to form beneficial strategic alliances with its funding sources, broker network, and customers."

The company has its main office in Boise and a branch located in Henderson, Nevada, according to its web site.
http://www.triadleasing.com/

The filing indicates that "funds will be available for distribution to unsecured creditors."

Creditors holding the 20 largest unsecured claims, according to the BK document, are:
Ameca First Commerce, Lake Oswego, Oregon
First Lease, Fort Washington, Pennsylvania
Idaho Banking Company
LEAF Financial, Philadelphia, Pennsylvania
Sovereign Bank, Melville, NY
Washington Trust Bank, Spokane, Washington
Western Capital Bank, Boise, Idaho

"Meeting of Creditors 341(a) meeting to be held on 9/4/2009 at 09:00 AM at 720 Park Blvd, Suite 210, Washington Group Central Plaza. Last day to oppose discharge or dischargeability is 11/3/2009.Proofs of Claim due by 12/3/2009.Government Proof of Claim Date 2/10/2010 (aw)"

An August 27, 2009 document asks for a notice of disposition of equipment:

It also appears there is a resolution regarding Cash Collateral: "The Parties have reached an interim resolution for use of Cash Collateral. The resolution is stated on the record. The Court schedules a Final Hearing on the Motion to Use Cash Collateral for 9/10/09 at 9:30 a.m. An interim order GRANTING Use of Cash Collateral will forthcoming for the Courts approval. By 9/4/09 the Parties shall submit their briefs, disclose their witnesses and exhibits. The Debtor shall identify exhibits by consecutive numbers starting with 100; Larry Prince - Counsel for Western Capital Bank shall identify exhibits by consecutive numbers starting with 200; Jed Manwaring - Counsel for Idaho Banking Co. shall identify exhibits by consecutive numbers starting with 300; John Kurtz - Counsel for First Lease Inc. shall identify exhibits by consecutive numbers starting with 400; John Ward - Counsel for Washington Trust Bank shall identify exhibits by consecutive numbers starting with 500, Jennifer Simpson - Counsel for Leaf Funding Inc. shall identify exhibits by consecutive numbers starting with 600; Gary McClendon - Counsel for the U.S. Trustee shall identify exhibits by consecutive numbers starting with 700. All other parties in interest shall contact the Court to obtain an exhibit series."

US Bankruptcy Chapter 11 Filing:
http://leasingnews.org/PDF/Triad%20Leasing%20BK%20filing.pdf

Cash Collateral Request:
http://leasingnews.org/PDF/Triad%20permission%20to%20sell%20collateral.pdf

Oh, No! Third Amended Complaint-First Sound vs. Secords

The latest amended complaint, " C09-0056-TSZ" filed by First Sound Bank (FSB), Seattle, Washington, vs. Larasco and the Secords includes new parties and new information. The original complaint outlined the alleged deception in the sale of Puget Sound Leasing (PSL), the second brought it further (1), and the third comes from the hiring of a leasing expert who found what the first two overlooked, as well as a continuation of the first two, plus new evidence that the Secords started moving assets soon after the original complaint was made.

Leasing News was the first news media to report that Richard Secord, founder of Pugent Sound Leasing, Issaquah, Washington, was escorted out from a board of directors meeting late last year, and shortly thereafter a law suit was filed against he, his brother Richard, and their company Larasco resulting from the banks purchase of Pugent Sound Leasing.

Richard Secord was one of FSB's largest shareholders and had been an FSB director since the bank's founding. A current FSB board member, James H. Jackson, had in the past provided accounting services to PSL CO, but ceased doing so upon the formation of FSB.

While the first complaint contained testimony of 12 employees about alleged instructions regarding report delinquencies, extending lease payments, "forfeiting" security deposits with "Evergreen Clause" as well as changing residuals from a $1 to "ten percent" as well as "fair market value," and legal expert opinion from the eminent John Dean, founder-managing partner the renown The Alta Group, the third comes from a very well-known leasing person with "street experience" as well as impeccable credentials, which produced more information, as well as supported the first complaint. The third also brings forward originals motions regarding allegedly efforts by the Secords to protect their personal assets from the suit.

Leasing News original information, and the new information, comes from a very highly reliable source, and has been verified later by public documents. None of the principals nor those engaged by either party has disclosed any information. There is much more to the story to be told, coming from our original source, as well as ex-employees, including perhaps the plan all along was to sell PSL to FSB as one of the reasons for the formation of the bank.

FSB was founded in 2004. On March 1, 2008, FSB acquired certain assets of Puget Sound Leasing Co., Inc. from defendants Richard Secord and Louis Secord. On March 1, 2008, PSL CO sold certain assets, including the name "Puget Sound Leasing," to FSB. The assets not sold to FSB remained in PSL CO, which was renamed Larasco.

The case now has 235 separate dockets with often several sets of documents in each, some sealed, some unsealed, some sealed and now unsealed, and First Sound Bank, in their discovery actions of cross complaints has now filed a " C09-0056-TSZ THIRD AMENDED COMPLAINT" (2)

There are new revelations, among them:

"...when PSL CO originated many of its leases, it entered into agreements ("Broker Side Agreements") with the brokers who had referred the customer to PSL CO. The Broker Side Agreements provided that, in addition to paying the broker a commission when the lease was originated, PSL CO would pay the broker a commission when the customer paid the residual payment at the conclusion of the THIRD AMENDED COMPLAINT NO. C09-0056-TSZ - Page 10>"

"... Defendants did not disclose the existence of the Broker Side Agreements to FSB and the liabilities resulting from the Broker Side Agreements were not reflected on PSL CO's financial statements. Defendant Louis Secord maintained the Broker Side Agreements in separate files in his office and did not make the files available to FSB.
b. Inflation of Income. PSL CO manipulated its financial statements to create the impression that the business's income was substantially higher than its actual income. For example, PSL CO's lease agreements provided that, in cases where a customer failed to make a lease payment on time, PSL CO could "boost" the value of the optional residual payment that the lessee could make to purchase the leased property at the end of the lease term. Under generally accepted accounting principles, PSL CO could only treat the boosted residual payment as income if and when the lessee actually made the residual payment. PSL CO, however, treated the "boosted" residual as income at the time PSL CO "boosted" the residual payment. Because, in many cases, customers never actually made the "boosted" residual payment, this accounting process reflected income that PSL CO never earned.
c. Overstatement of Assets. Defendants misrepresented the value of the assets to be transferred to PSL CO in connection with the Asset Purchase Agreement. For example, defendants represented on PSL CO's financial statements that PSL CO's warehouse contained over $450,000 worth of repossessed equipment that was the property of PSL CO. In fact, almost all of the equipment belonged not to PSL CO, but to the Investor Banks who owned the payment streams associated with the repossessed property."

(Note: Investor Banks refer to many banks, some mentioned in the suit, others not to date that were sold in portfolios by syndication brokers, named in the court records. PSL acted as a "packager," retaining title plus guaranteeing delinquency and replacement of failed transactions in various agreements. editor)

"38. After the Closing of the Asset Purchase Agreement, Louis Secord, who was then a director of FSB and president of its new Puget Sound Leasing Division, took steps to conceal and perpetuate the misrepresentations and omissions identified above, and to improperly benefit defendants Larasco, himself and Richard Secord at the expense of FSB.
39. For example, in March, 2008 (just after the transaction had closed), Louis Secord caused FSB's Puget Sound Leasing Division to make payments to Investor Banks and take write offs in the amount of $949,487.43. These payments and write offs were the responsibility of PSL CO-not FSB-because they were associated with payments made (or in the case of write offs, payments not made) to PSL CO before the transaction closed. Defendants failed to fully reimburse FSB for the $949,487.43-paying FSB only $460,332.3 1-and did not disclose and/or attempted to conceal from FSB the fact that FSB had not fully been reimbursed.
40. When confronted with this misconduct, Louis Secord admitted defendants' responsibility for failing to reimburse FSB for the full $949,487.43. Defendants and FSB then entered into a contract entitled Agreement to Clarify Operating Procedures (the "Clarification Agreement"), which was intended to address this issue along with other problems that had arisen after the asset sale. As part of the Clarification Agreement, defendants promised to reimburse FSB for the portion of the $949,487.43 for which they had not yet made reimbursement."

(There are other findings, two numerous in the 32 page third complaint. editor)

These are new claims amended to the original, in addition in the original complaint, the plaintiff asked for freezing of personal assets, including the court hold the passports of the Secords. During these motions that went back and forth, the amended complaint states:

"47. On December 16, 2008, the Secord Defendants and Larasco caused assets to be transferred from Larasco to LASCOR and RASCOR. The assets transferred to LASCOR include real property in Chelan County, Washington with an assessed value of THIRD AMENDED COMPLAINT NO. C09-0056-TSZ - Page 13 approximately $1.8 million. The assets transferred to RASCOR include real property in Chelan County with an assessed value of approximately $2.7 million. On information and belief, Larasco also transferred additional property to LASCOR and RASCOR, including shares of FSB stock. Neither LASCOR nor RASCOR provided reasonably equivalent value in exchange for the assets transferred to them."

"50. The Transfers to Louis Secord and Richard Secord: Larasco transferred valuable assets to Louis Secord and Richard Secord during the period when litigation between Larasco and FSB was ongoing or anticipated. Specifically, in early 2009, Larasco forgave over $1 million in loans to Louis Secord and Richard Secord. Larasco also paid off over $400,000 worth of additional loan obligations of Louis Secord and Richard Secord. In addition, Larasco transferred 2,500 shares of Microsoft stock each to Louis Secord and Richard Secord. Beginning in about October 2008 and continuing to the present, Larasco has made regular monthly cash transfers of approximately $12,000 to Louis Secord and $12,000 to Richard Secord.
51. Neither Louis Secord nor Richard Secord provided any value (much less reasonably equivalent value) to Larasco in return for the previously-described transfers from Larasco to Louis Secord and Richard Secord. 52. The Transfer to Roberts Properties: On or about March 15, 2008, Larasco transferred $425,000 to Roberts Properties in exchange for a promissory note due March."

(1) 8. RASCOR, LLC ("RASCOR") is a Washington limited liability company. RASCOR is owned and controlled by Larasco and Richard Secord.9. Nonparties Edward Roberts, Mark Roberts and Elliott Severson are Washington residents and are long-time business associates and close personal friends of Louis Secord and Richard Secord. In deposition testimony, Louis Secord described Edward Roberts and Mark Roberts and Elliott Severson as "partners" of Louis Secord and Richard Secord.
10. Defendant Roberts Properties, Inc. ("Roberts Properties") is a Washington corporation. Roberts Properties is owned and controlled by Edward Roberts and Mark Roberts.
11. Defendant SR Development LLC ("SR Development") is a Washington limited liability company. SR Development is owned and controlled by Edward Roberts, Mark Roberts and Elliott Severson.
12. Defendant SEVRO II, LLC ("SEVRO II") is a Washington limited liability company. SEVRO II is owned and controlled by Edward Roberts, Mark Roberts and Elliott Severson.
13. Defendant Del Norte, LLC ("Del Norte") is a Washington limited liability company. Del Norte is owned and controlled by Edward Roberts, Mark Roberts and Elliott Severson.
14. Defendant Bay House at Chelan, LLC ("Bay House at Chelan") is a Washington limited liability company. Bay House at Chelan is owned and controlled by Louis and Richard Secord or Larasco, and by Bay House LLC, a Washington limited liability company. Bay House LLC is owned and controlled by Edward Roberts, Mark Roberts and Elliott Severson.

(2) "LARASCO, INC., a Washington
corporation; LOUIS A. SECORD, JR., an individual; RICHARD A. SECORD, an individual; LASCOR, LLC, a Washington limited liability company; RASCOR LLC, a Washington limited liability company; ROBERTS PROPERTIES, INC., a Washington corporation; SR DEVELOPMENT, LLC, a Washington limited liability company; DEL NORTE, LLC, a Washington limited liability company; BAY HOUSE AT CHELAN, LLC, a Washington limited liability company; and SEVRO II, a Washington limited liability company,
Defendants.
WELLS FARGO EQUIPMENT FINANCE, INC., a Minnesota corporation; PLAZA BANK, a Washington corporation; REGAL FINANCIAL BANK, a Washington corporation; COWLITZ BANK, a
Washington corporation; WASHINGTON FEDERAL, INC., a Washington
Corporation; BANNER BANK, a Washington corporation.

Here is a copy of the amended complaint, 34 pages, as well as the plaintiff's response, denying most of the new accusations, 10 pages:

Third Amended Complaint:
http://leasingnews.org/PDF/First%20Sound%20Up-dated%20Complaint.pdf

Secords Response:
http://leasingnews.org/PDF/Secords%20Responds.pdf

Previous Articles:
http://www.leasingnews.org/Conscious-Top%20Stories/pugent.htm

(click on ad to learn more) (Leasing News provides this ad "gratis" as a means to help support the growth of Lease Police)

Bank Beat---3 More/84 Total YTD

Affinity Bank, Ventura, California, became the 84th bank to fail this year, the ninth in California. The ten branches located in San Francisco and San Mateo are now part of Pacific Western Bank, San Diego, California.

Affinity Bank was originally named San Francisco Thrift & Loan and was incorporated in 1982. In 1995, the Bank was sold to Affinity Group Inc. (AGI). In 1997, the Bank was renamed to Affinity Bank, headquartered in Ventura, California. There web site said, "We currently have eleven branches throughout California. We also offer commercial real estate, construction loan, and health care financing loan with offices throughout 11 states."

As of July 10, 2009, Affinity Bank had total assets of $1 billion and total deposits of approximately $922 million. In addition to assuming all of the deposits of the failed bank, Pacific Western Bank agreed to purchase essentially all of the assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $254 million.

Note, the FDIC has the press release and other information also available in Chinese.
http://www.fdic.gov/news/news/press/2009/pr09157.html

Bradford Bank, Baltimore, Maryland, with nine branches, is now part of Manufacturers and Traders Trust Company (M&T), Buffalo, New York. As of June 30, 2009, Bradford Bank had total assets of $452 million and total deposits of approximately $383 million. In addition to assuming all of the deposits of the failed bank, M&T agreed to purchase essentially all of the failed bank's assets.

Bradford had been one of Baltimore's fastest-growing banks, buying up three smaller Baltimore-area banks. In 2007, the bank bought Senator Bank, of Cockeysville, and Golden Prague Federal Savings and Loan Association, of Baltimore. In 2006, it bought Valley Bancorp, of Hunt Valley. It had received several cease and desist notices for being "undercapitalized."

The FDIC and M&T entered into a loss-share transaction on approximately $338 million of Bradford Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $97 million.
http://www.fdic.gov/news/news/press/2009/pr09155.html

Mainstreet Bank, Forest Lake, Minnesota, eight branches opened last Saturday as part of Central Bank, Stillwater, Minnesota. The bank had been notified by various agencies as being "undercapitalized," primarily due to losses in real estate loans. It had not been profitable since 2007.

As of June 30, 2009, Mainstreet Bank had total assets of $459 million and total deposits of approximately $434 million. Central Bank will pay the FDIC a premium of 0.10 percent to assume all of the deposits of Mainstreet Bank. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets. Central Bank now is one of the largest community banks in the Twin Cities, with $900 million in assets.

The FDIC and Central Bank entered into a loss-share transaction on approximately $268 million of Mainstreet Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $95 million.
http://www.fdic.gov/news/news/press/2009/pr09156.html

Cease & Desist Order in July by state
(not other months, just July:)

Mesa Bank, Mesa, AZ,
Community Bank of Arizona, Phoenix, AZ
Desert Hills Bank, Phoenix, AZ
Commerce Bank of Southwest Florida, Fort Myers, FL
Northside Bank, Adairsville, GA
Ravenswood Bank, Chicago, IL
ShoreBank, Chicago, IL
Mt. Washington Co-Operative Bank, South Boston, MA
State Bank of Delano, Delano, MN
Northern Star Bank, Mankato, MN
St. Stephen State Bank, Saint Stephen, MN
LibertyPointe Bank, New York, NY
Advantage Bank, Cambridge, OH
MBank, Gresham, OR
Royal Bank America, Narberth, PA
First Midwest Bank, Centerville, SD
Commercial State Bank of El Campo, El Campo, TX
CIT Bank, Salt Lake City, UT
Utah Community Bank, Sandy, UT
Citizens State Bank, Hudson, WI
Security Bank, New Auburn, WI
Bank of Ontario, Ontario, WI

July Enforcement Filings (includes PDF's on "Cease & Desist"):
http://www.fdic.gov/news/news/press/2009/pr09154.html

List of Bank Failures
http://www.fdic.gov/bank/individual/failed/banklist.html

Leasing News Top Stories-August 24-28

Here are the top ten stories opened by readers:

(1) IFC's Rudy Trebels, CLP, is Served
http://leasingnews.org/archives/August%202009/08-24-09.htm#IFC

(2) Sales make it Happen---by Christopher Menkin
Changes in the Leasing Marketplace
http://leasingnews.org/archives/August%202009/08-26-09.htm#Salesmakeithappen

(3) Gallo's Form Blue Bridge Financial, LLC.
http://leasingnews.org/archives/August%202009/08-28-09.htm#Gallo

(4) Leasing Software Icon John McCue in SF Hospital
http://leasingnews.org/archives/August%202009/08-26-09.htm#NetSol
(An error was corrected on line, otherwise this may have had more readers. Editor)

(5) Senator Edward Kennedy Passes Away *
http://leasingnews.org/archives/August%202009/08-26-09.htm#Edward_Kennedy

(6) Annie Leibovitz, photographer of stars, faces ruin
http://www.breitbart.com/article.php?id=CNG.2f54f844fc040f6daba9c6b086caf08f.21&show_article=1

(7) $6MM Leasing Ponzi scheme mobile home parks
http://www.latimes.com/business/la-fi-mobilehome-fraud28-2009aug28,0,4727944.story?track=rss

(8) Ken Bentsen's Farewell Leasing Numbers
by Christopher Menkin
http://leasingnews.org/archives/August%202009/08-26-09.htm#Farewell_leasing

(9) Small Players' Losses In CIT Crisis
http://online.wsj.com/article/SB125051867904436961.html

(10) McCue Grateful for Notes received in Hospital
http://leasingnews.org/archives/August%202009/08-28-09.htm#McCue

" This was sent out 3:30am, EDT, so readers on the East Coast, Europe, India, Middle-East, perhaps parts of Asia, most likely may have heard the news here first, as well as early risers on the West Coast. Leasing News is usually sent out around 3:00am to 3:30am Monday-Wednesday-Friday as a new process is utilized. Leasing News has access to all the printed newspaper editions on line to be physically delivered in the morning. Also available, late developing news up to midnight, California time, which was the time of the announcement of Senator Kennedy's passing. editor)

Where Pres. Reagan Placard can be purchased

Readers who have color printers can print this for their use. Those who would like a copy of the original, it may be purchased from the Ronald Reagan Presidential Foundation and Library for $16.95
(plus tax, if applicable, and shipping)

http://www.reaganfoundation.org/store/prod-_It_Can_Be_Done__Placard-988.aspx

Leasing 102
by Mr. Terry Winders, CLP

Residual Value in Poor Economic Times

It is tough to get funding sources or management to accept residuals in good times and in this economic slowdown I hear it is almost impossible. While I agree with this assessment, a true lease offers too much incentive to not try. So let's discuss some procedures to help everyone to consider a proper residual. The first requirement is to ask what the lease policy says at your leasing company or funding institution. Most lease policies in banks restrict the booked residual to 50% of the equipments estimated wholesale value at lease termination. These policies can be over ruled but they require some excellent reasons and proof. If you know the funding sources policy regarding residuals you will know where to start.

The type of equipment and its relative use has a lot to do with the residual so even thought the top residual may not exceed that 50% ceiling some equipment warrants very little residual risk. So do not try to assume residuals on equipment that gets heavy use or is easily replaced.

Please remember that the IRS and the legal requirements are that the term of your lease does not exceed 80% of the useful life of the equipment "and" the burden of proof is on you. You must have information in your folders that explains how the equipment is used and why you have not exceeded the 80% test based on that use! How do you argue that your term does not exceed 80% when you assume a "0" residual? Well there are ways, but it begins with the completion of an "equipment use and description form". (If you do not have a good one let me know and I will email you one). The purpose of this form is to give you information on the correct description of the equipment and simple answers as to its use and other issues that affect its value. This information will help you to assume the correct residual.

Check out the equipment like you check out credit! Investigating the equipment takes the same skills as required for a competent credit reviewer. You do not extend credit without checking all aspects of the lessee's credit performance and financial condition, so you need the same skills to check with the manufacturer, distributor, secondary remarketers and guide books alone with the equipment use information to determine the best possible residual value. Once in a while this information may make you question the term of the lease the lessee requested or you may discover it is not equipment you want to lease.

If you ignore the collateral value of your lease you are asking for all kinds of problems and you cannot rely on hearsay and assumptions to take residual positions. Most important, place the anticipated use and maintenance requirements in the lease, with additional rent requirements if the use or maintenance is abused. You must protect your residual position with this kind of due diligence.

Residual assumptions require periodic inspections. First to make sure the equipment is still there and being used as programmed. However, it is a special way to stay in contact with your customer for more business. One word of caution, always, always inspect the equipment do not take someone's word that it is OK but just not here! Always check serial numbers and do a "complete" inspection. Sloppy inspections or no inspections have caused more losses for the leasing industry than poor credit.

If the above procedures are in place, informed residuals are more comfortable to assume and make it easier to understand. Without checking the equipment the credit decision is only half done! With an equipment review it provides additional information to determine the lease term, the lease rate, and the residual, so you make a solid transaction. The residual is only a part of the lease when done correctly but it frightens credit people that have not done their homework. If you are relying on a funding source you may have to perform these tasks yourself and present them in a package with all phone numbers, emails, and locations of your equipment vendors with copies of the equipment brochures and maintenance suggestions. Sometimes it is smart to provide the maintenance language for the funder to insert in their documents. The more you can do to make the funding source comfortable with your equipment the better chance to get them to accept residuals.

Residual assumptions are a time consuming exercise but the more you do it the better your portfolio will perform. Leasing is not lending and it requires more work but it is very satisfying when done correctly.

Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at leaseconsulting@msn.com or 502-327-8666. He invites your questions and queries.

Previous #102 Columns:
http://www.leasingnews.org/Conscious-Top%20Stories/Leasing_102/Index.htm

(This ad is a "trade" for the writing of this column. Opinions contained in the column are those of Mr. Terry Winders, CLP)

2 firefighters die battling blaze in Los Angeles County
http://www.cnn.com/2009/US/08/31/california.wildfires/

Asian markets fall as China shares sink over 5 pct
http://www3.signonsandiego.com/stories/2009/aug/30/world-markets-083009/?business&zIndex=157924

As Big Banks Repay Bailout Money, U.S. Sees a Profit
http://www.nytimes.com/2009/08/31/business/economy/31taxpayer.html?_r=1&hp

Owner of Orange County Register May File for Bankruptcy
http://www.nytimes.com/2009/08/31/business/media/31paper.html?ref=business

After Century of Growth, Tide Turns in Florida
http://www.nytimes.com/2009/08/30/us/30florida.html?_r=2&hp

As Internet turns 40, growth threatened
http://www.chicagotribune.com/business/sns-ap-us-tec-internet-at-40,0,7082723.story

Jay Cutler and Chicago Bears defeat Denver Broncos 27-17
http://www.chicagotribune.com/sports/football/bears/chi-31-bears-broncos-chicago-aug31,0,3426493.story

Not all Napa Valley wines are the same
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/27/WI3S191AF7.DTL

Ins And Outs Of Wine Competitions
http://www.forbes.com/2009/08/27/riesling-chardonnay-cabernet-lifestyle-wine-competition.html

French wine exports fall 25 percent amid crisis
http://www.forbes.com/feeds/ap/2009/08/27/business-eu-france-wine-exports_6822235.html

New York wines
http://www.napavalleyregister.com/articles/2009/08/28/wine/dan_berger/doc4a97851c46568928833340.txt

1864 - General William T. Sherman launches the attack that finally secures Atlanta, Georgia, for the Union, and seals the fate of Confederate General John Bell Hood's army, which is forced to evacuate the area. The Battle of Jonesboro was the culmination of a four-month campaign by Sherman to capture Atlanta. Confederate General William Hardee's corps moved to block Sherman at Jonesboro, and attacked the Union troops on August 31, but the Rebels were thrown back with staggering losses. The entrenched Yankees lost just 178 men, while the Confederates lost nearly 2,000. On September 1, Sherman attacked Hardee. Though the Confederates held, Sherman successfully cut the rail line and effectively trapped the Rebels. Hardee had to abandon his position, and Hood had no choice but to withdraw from Atlanta. The fall of Atlanta was instrumental in securing the reelection of Abraham Lincoln in the fall.

At the Convention

his hand

once steady
for an
entire game

trembles
from the
weight
of a pen

Written by Dan Zamudio, "Catcher in the Wry,"
baseball poems, published by McFarland 7 Company