Monday, July 19, 2010
Classified Ads---Sales Manager
Classified Ads---Sales Manager
For a full listing of all “job wanted” ads, please go to:
Other e-Mail Posting Sites:
Two More Cases against Allied Health
Onset Financial, South Jordan, Utah and CW Onset, a Utah limited company, on July 12, 2010 filed a $9,798,000 "Breach of Contract" complaint against Allied Health Care Services, Orange, New Jersey as well as the guarantor Charles K. Schwartz. Republic Bank of Utah has filed a case, according to Dun & Bradstreet, but no record was found. The Onset Financial file does not have proceedings for case 1:10-cv-006393-PMW available at this time.
Crossroad Bank, Wabash, Indiana, formerly known as First Federal Savings Bank of Wabash filed a suit on July 9th, 2010 for $144,788.20 plus attorney and court costs regarding respirators. Commonwealth Capital Corporation filed on June 18 for $4,224,543.02 against the corporation and $1,792,893.82 against the personal guarantee of Charles K. Schwartz, "plus attorneys fees, costs, and interest, as well as all other relieve which this court deems just;" Kingsbridge Holding, LLC, Lake Forrest, Illinois, was first with a suit against Allied Health Care Services for $1,051,207.74 plus attorney and court fees; MinnWest Capital Corporation, Minnetonka, Minnesota, (subsidiary of MinnWest Bank Metro) $2,070,690 suit against Allied as well as the Charles Schwartz, president of the company, as personal guarantor to the corporation.
February 19, 2010 Leasing News asked readers for more information on Allied Health and received over 50 inquiries from leasing companies and banks of all sizes that took over 45 days to respond and verify information. There were 494 UCC's at that time and now at 524 UCC's, many with small banks across the country.
Rick Wilbur wrote Leasing News that his company Charter Capital, Scottsdale, Arizona has " done business with Allied for over five years. We’ve closed over 90 separate deals for in excess of $19 million."
Gary Saulter of Chase Industries says he has done millions for Allied in the last ten years. "I know exactly what the equipment is, what is does, and where it all is. We did inspections on all his recent deals."
Larry LaChance, CLP, Northborough, Massachusetts says, "Have multiple lease schedules with 7 figure exposure. Started relationship back in 2004 and Allied has never been late or missed a payment on any schedules."
There were many bank presidents and heads of leasing companies who criticized Leasing News for asking questions about Allied Health Care Services.
The founder and president, Charles Schwartz, who personally guaranteed all the leases, did not return telephone calls or emails, and has not since May, 2010.
The corporate secretary Sherrie L Mulligan mail box is full.
Ray Butler, Butler president of Amsource Capital, Lewisville, Texas, who was reportedly coordinating new lease applications, told Leasing News in May:
"The last time I spoke with Chuck he told me he was in final negations with a new bank to replace Sun Bank and that everything should be back on track to catch up past due payments by June 1st. I knew Allied was behind anywhere from 30 to 90 days with some lenders but did not know any had formally defaulted their loans."
Dun & Bradstreet reports are starting to catch up, but what tells the story more than anything now at the end of July are the various lawsuits. For more information, please go to:
((Please Click on Bulletin Board to learn more information))
Funder List Updated: Bank of the West Leasing
A -Accepts Broker Business | B -Requires Broker be Licensed | C -Sub-Broker Program
“Bank of the West – We have been serving the funding needs of the Broker/Lessor community continually since 1973. We are selectively adding new brokers that have been in business at least three years and can demonstrate the ability to generate a minimum of $1MM annually of quality transactions. We operate in all 50 States, looking for “A” quality transactions; and in return offer very competitive buy rates. Application-only transactions are accepted from $20K to $75K and financial statement transactions from $20K to $2MM+. We offer a variety of products including PRO and TRAC true tax leases, capital leases, EFA’s and more.”
Funder List “A:”
One of the most perplexing problems in the commercial leasing business is a customer that says he is happy with the lease and wants to proceed, and then backs out. In the beginning we use to solve this problem by having them sign a lease agreement but leave the lessor’s part unsigned so if the credit or equipment studies did not measure up we could pass on the deal. But over the years and the advancement of the bank leasing companies it seems that we want to check credit and review the equipment prior to creating the lease documentation. This becomes expensive if a lessee looks to back out. The question then becomes how do we bind the customer to the transaction prior to documentation?
One of the reasons customers back out of lease transactions is because someone offers them a better deal than yours after you have made your presentation. It stands to reason that a lessee wants the best deal and will show your proposal to anyone who claims that if they can see it or know the contents they can beat it. So you become a target until the deal is signed
A signed proposal is not binding but it goes a long way to committing the customer to the deal. They usually feel morally committed if they sign their name to the bottom of the proposal “if” it is a proposal that spells out the parameters of the transaction and not just the rate... Usually I like to use this language above the signature: “I, the undersigned, hereby authorize the release of credit information, and request that all loan, credit, bank, trade or other history be given as needed to ABC Leasing Company and, or our agent. I also understand that the use of a photocopy of this release may be necessary to verify my history. I authorize the use and request such a copy be honored fully, as if it were original. I also understand that the financial information provided to ABC Leasing Company. may be distributed to other financial institutions that may provide funding services or participate in this lease.” I have found that because this paragraph is long and they rarely read it they usually proceed with the lease.
Another way to commit them to the deal, and my favorite method, is to require a fee upon signing the proposal that is part of the first payment if the lease is signed or earned if they back out. The language is this: “Lessee shall remit a commitment fee equal to one percent (1%) of the equipment cost to the Lessor in good faith when this proposal is signed and accepted. This fee shall be used to reduce the first rental payment equal to the amount of the fee, if the lessee proceeds with the lease described in this proposal. If for some reason the lessee decides not to proceed with the lease the fee will be considered earned by the Lessor to compensate the Lessor for the evaluation expenses. If the Lessor decides to reject the lease then the fee will be returned to the lessee within thirty days after said rejection.” This is a commitment to the Lessor that is rarely forfeited and helps bind the Lessee to the deal.
Whatever you do to bind the lessee to the transaction always remember time is very short and you need to get a lease agreement signed as soon as possible but do not put the lessor’s signature on the document until “you” are ready to commit. Once the Lessor signs the agreement the deal is done!
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at email@example.com or 502-327-8666.
He invites your questions and queries.
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
The dollar size of the lease proposal often dictates the details and length of the commitment letter.
In small ticket lease, the actual lease payment is often given and calls for the first and last as well as the documentation fee. Often a clause contains a "documentation" fee for $495.00, which is non-refundable if the lease is not approved. The wording is different and seems to be buried and whether written originally by an attorney or taken from the use of another leasing companies form is not known.
According to ex-employees as well as complaints that have appeared in Leasing News, many companies get such proposals signed in advance knowing they will be unable to proceed with the lease due to the nature of the equipment or the proposed lessee telling them of their credit difficulties in the presentation or from running a consumer credit report.
In larger ticket size leases, often a form such as this is used, which specifically charges a fee to process the application:
Loans or “Working Capital” commitment letters are explicit and require the broker to often be licensed. This form is for use in California:
This form is one of the most widely used in the leasing industry for leases $50,000 and above and covers most of the bases. Note: Last sentences about the signatures makes this more a “proposal,” than commitment. If required, these sentences may be removed.
It is a good idea to have the form you use reviewed by an attorney with equipment leasing experience. This does not mean your college friend who became a lawyer. You wouldn't take your children to an Endodontist to get braces on their teeth, although the practitioner is a "dentist." The same with going to an attorney. You don't go to a divorce attorney to go over a lease commitment contract.
Some things to consider in your form.
#1: ACH---If you are going to require it or may require it, you should have this spelled out in the agreement. If not in the contract and becomes a requirement of the lease, the proposal is invalid.
#2 Date---It is a good idea to have a time period involved, and perhaps if not approved, from completion of all the documents and/or lease contracts. A prospect can back out after 30 days and bring this up in small claims court, unless spelled out the time begins after all documentation is complete ( attorneys will have different opinions on this and its wording, but the complaint may make it into Leasing News when it takes months before anything happens.)
#3 Personal guarantee--of all officers who own 10% or more of a privately held corporation. (This will protect if the final approval comes in with terms and conditions, but requires other guarantors who are not named on the application or in the proposal.)
This form was developed by Ken Greene now at partner at Hamrick & Evans, LLP, Universal City, California, with offices also in Northern California.
To Contact Ken Greene:
Kenneth C. Greene, Partner
The form makes it a contract between both parties, and is not one sided as appeared in this Leasing News Bulletin Board Complaint:
from this Leasing News Bulletin Board Complaint:
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Bank Beat---Ex BofA Exec. buy 23 Branches; Michigan, Florida again
New North American Financial Holdings (NAFH) Assumes Three Bank with 23 branches.
NAFH is run by a trio of former Bank of America executives who said they have raised $900 million to purchase failed and struggling banks. Gene Taylor has 38 years experience at Bank of America, most recently as head of commercial and investment banking, reporting to then-CEO Kenneth Lewis. The two other main executives are both Bank of America former employees, former CEO Hugh McColl Jr. and finance chief Marc Oken.
The 13 branches of First National Bank of the South, Spartanburg, South Carolina were closed with NAFH National Bank, Miami, Florida, the newly-chartered bank subsidiary of North American Financial Holdings, Inc., Charlotte, North Carolina, to assume all the deposits.
Part of the problem for the failure was allegedly the $59.3 million purchase of Columbia-based Carolina National Bank in 2008. In regulatory filings it was reported the bank had been unable to make payments on a $9.6 million loan used to finance the sale, as well as non-current loans jumped from $69 million to $121.9 million with loss of $1.1 million the previous period to $5.9 million loss by March 31, 2010.
March 31, 2009 they had 156 full time employees and down to 135 full time employees by March 31, 2010. Equity had fallen in the same period from $60.2 million to $52.9 million and Charge offs were $5.7 million ($1.5 million construction and land development, $1.49 million 1-4 multi-family residential, $1.8 million nonfarm nonresidential property.) Tier 1 risk-based capital ratio 2.76%.
First National Bank of the South had total assets of $682.0 million and total deposits of $610.1 million; share loss agreement was $512.4 million of First National Bank of the South's assets.
Cost to the FDIC will be $74.9 million.
The six branches of Metro Bank of Dade County, Miami, Florida were closed becoming the second bank taken over by the newly-chartered bank subsidiary of North American Financial Holdings, Inc., Charlotte, North Carolina, to assume all the deposits. There were 73 full time employees at March 31, 2010, net equity was $42.6 million the year before this date and became $7.4 million with $58 million in non-current loans plus $6.2 million in charge offs ( $3 million commercial land and development, $2 million secured by farmland, and $967,000 in commercial loans primarily.) The bank had lost $9.59 million March 31, 2010 with a Tier 1 risk-based capital ratio 2.16%
Metro Bank of Dade County had total assets of $442.3 million and total deposits of $391.3 million; loss-share transactions on $299.3 million of Metro Bank of Dade County's assets.
The FDIC estimates the cost will be $67.6 million.
Turnberry Bank, Aventura, Florida, was the third bank taken over by the newly-chartered bank subsidiary of North American Financial Holdings, Inc., Charlotte, North Carolina, to assume all the deposits. It has 44 full time employees. Turnberry Bank was founded in North Miami Beach in 1985. In 1997, it moved its headquarters to Aventura. Its other offices were in Coral Gables, Pinecrest and South Miami. The bank was controlled by the family of Turnberry Bank
Chairman and CEO Roark “Rocky” Young. He heads the Miami-based discount brokerage firm Young, Stovall & Co.
Bank equity had dropped from $20.9 million to $8.9 million with non-current loans of $32 million, following a $2.5 million loss March 31, 2009 to a $1.3 million loss March 31, 2010. Tier 1 risk-based capital ratio 5.50% .
Turnberry Bank had total assets of $263.9 million and total deposits of $196.9 million; loss-share agreement $194.6 million of Turnberry Bank's assets.
Cost to the FDIC estimated to be $34.4 million.
The eight branches of Woodlands Bank, Bluffton, South Carolina were closed with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits.
July 16, 2009 The Office of Thrift Supervision issued a 29 page cease-and-desist order, criticizing Woodlands for unsound practices including concentrating too heavily in commercial real estate lending, bad loan underwriting and monitoring, and not having enough capital to cover potential losses.
The bank had gone from 65 full time employees to 40 full time employees by March 31,2010, equity from $26.8 million to $11.3 million with non-current loans at $16.5 million March 31, 2010 with a $1.4 million loss the previous period and $5.6 million March 31, 2010. There were $10.6 million in charge offs ($4.9 million in construction and land development, $3.2 in 1-4 multi-family dwellings, $1.7 secured by nonfarm nonresidential property, $589,000 in commercial loans.)Tier 1 risk-based capital ratio 2.71%
As of March 31, 2010, Woodlands Bank had approximately $376.2 million in total assets and $355.3 million in total deposits. The FDIC and Bank of the Ozarks entered into a loss-share transaction on $288.7 million of Woodlands Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $115.0 million.
The four branches of Olde Cypress Community Bank, Clewiston, Florida were closed with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all of the deposits. The bank was chartered in 1927, and became in Clewiston Federal Savings and Loan Association, changing its name in 2004. It grew to include offices in Clewiston, Labelle, Winter Haven, and the acquisition of Flagship Mortgage Banc, As of March 31, 2010, Olde Cypress Community Bank had approximately $168.7 million in total assets and $162.4 million in total deposits with 44 full time employees. Equity had dropped from $10 million March 31, 2009 to $5.8 million with non-current loans of $14.9 million and a net income loss of $1.1 million March 31, 2010. Tier 1 risk-based capital ratio 5.00%.
The FDIC and CenterState Bank of Florida, N.A. entered into a loss-share transaction on $128.2 million of Olde Cypress Community Bank's assets. CenterState Bank of Florida, N.A. will share in the losses on the asset pools covered under the loss-share agreement.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.5 million.
The two branches of Mainstreet Savings Bank, FSB, Hastings, Michigan were closed with Commercial Bank, Alma, Michigan, to assume all of the deposits. The bank had 33 full time employees. Equity had dropped from $5.3 million to $2.2 million with $5.1 million in non-current loans. March 31, 2010 the bank had a loss of $1.3 million following a $957,000 charge off ($819,000 construction and land development, $129,000 1-4 multi-family residential property).Tier 1 risk-based capital ratio 3.12%
As of March 31, 2010, Mainstreet Savings Bank, FSB had approximately $97.4 million in total assets and $63.7 million in total deposits. Commercial Bank will pay the FDIC a premium of 1.13 percent to assume all of the deposits of Mainstreet Savings Bank, FSB. In addition to assuming all of the deposits of the failed bank, Commercial Bank agreed to purchase essentially all of the assets. The FDIC and Commercial Bank entered into a loss-share transaction on $77.1 million of Mainstreet Savings Bank, FSB's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $11.4 million.
List of Bank Failures
Top Stories---July 12-July 16
Here are the top ten stories opened by readers:
(1) "Advanced Rental" S. Calif. Leasing Complaint
(3) ELFA President on Financial Regulation Reform
(Tie) (4) Canadian Lessor Faces 11 Fraud Counts Lease Scam
(Tie) (4) Leasing 102 by Mr. Terry Winders, CLP
(5) Clarification--- Leasing in 2011
(6) Fourth Bank files against Allied Health
(7) Sales makes it Happen---by Kit Menkin
(8) 6 Month 2010 Leasing Assoc. Membership Count
(9) 2009 Unprecedented Net Income Decline 55%
(10) Cartoon---RT Running his leasing co. from Stateville in Joilet
Classified ads—Other e-Mail Posting Sites:
All "Outsourcing" Classified ads (advertisers are both requested and responsible to keep their free ads up to date:
How to Post a free "Outsourcing" classified ad:
"Jordon is a four and a half year old, twenty three pound spaniel mix. This little boy is a well-behaved, loving, little companion. Though a tad shy, the longer he is at GH, the more he is coming out of his shell. We would love to see Jordon in an adult home with patient, loving guardians."
Glendale Humane Society
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
Engineers detect seepage near BP oil well
BofA posts 2Q profit of $2.8 billion
Airplane Leasing Companies Said to Resume Orders at Air Show
The Debt Machine: A National Consumer Law Center Report
Sallie Weighs Spinoff against Asset Sales
Little work, but no layoffs at Iron Works
For College Sports, a Financial Hail Mary?
Joe Montana's son among 11 Notre Dame players arrested on drinking charges
At 72, California gubernatorial candidate is the same old Jerry Brown
Schwarzenegger's minimum-wage fight enrages state workers
Cheap wines drink up in recession
Do Wine Scores Matter? James Suckling's retirement from Wine Spectator will tell us for certain.
Behind Every Great Vineyard is a Grumpy Farmer
and The 2010 Pinot Noir Smackdown Award Goes to…
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in American History
1692- Five Massachusetts women were hanged for witchcraft. Fifteen young girls in the Salem community charged as many as 150 citizens in the area with witchcraft during the greater part of this year. The Salem witch hunt was unleashed in March of the year when some children, called upon to explain their odd behavior, claimed that three old women had bewitched them. The women were tried, convicted, and condemned on the testimony of the children. Although Governor William Phis halt the trails in October, 1692, by January 1693 twenty persons condemned for witchcraft had been executed and two had died in prison. The first person executive for witchcraft in America was Margaret Jones of Charlestown, Mass. Gov. John Winthrop wrote “that she was found to have such a malignant touch, as many persons, (men, women and children), whom she stroked or touched with any affection or displeasure, etc., were taken with deafness...or other violent pains or sickness...Her behavior at the trial was very intemperate, lying notoriously, and railing upon the jury and witnesses, etc., and in the like distemper she died. “
by Tim Peller
Hot wicked summer
Under the shrubbery
Budweiser! he calls
God Protects Fools with Curveballs
Going after her
from “ Touching the Bases”
These come from a soft cover 128 pages with index published by www.mcfarlandpub.com
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
How to play:
Refresh for current date:
See USA map, click to specific area, no commercials
Real Time Traffic Information
You can save up to 20 different routes and check them out with one click,
Independent, unbiased and fair news about the Leasing Industry.