Leasing News is a web site that posts information, news, and entertainment for the commercial leasing and finance industry. The News Edition is updated Monday, Wednesday and Friday.
Monday, June 20, 2011
More on Loan Modification Scam---PinnFund Perp.
######## surrounding the article denotes it is a “press release” and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer. It is considered “bias” as it is the writer’s viewpoint.
Hospital Report with CaringBridge Connection
Jeffrey Taylor, well-known leasing trainer turned author, has been at Scottsdale Health Care Hospital, Shea, Scottsdale, Arizona for 35 days. The heart and esophagus problems have been addressed and he awaits permission from the Food and Drug Administration for physician to give him the experimental Gleevec for his type of cancer. He is still limited to telephone calls, does not have access to his lap top or the web. The caringbridge.org site is new. http://www.caringbridge.org/visit/jeffreytaylor2
(Recent photo of Jeffrey with his family)
Chris Walker, CLP, president CLP Foundation, GreatAmerica, is fighting an inoperative pancreatic cancer. He has a current up-date here:
Spotlight on Chris Walker, CLP
Rosanne Wilson, CLP, P.B.P, former treasurer National Association of Equipment Brokers, on the Leasing News Advisory Board is also fighting cancer and goes into another serious treatment today, Monday, June 20. Messages and tributes are posted:
Nov. 2, 2007: Rosanne Wilson, CLP, w/Army Lieutenant Colonel Tom Weikert, attending NAELB Conference to see how leasing careers might fit for the wounded veterans who return from battle and have lost limbs or other physical abilities due to the conflict in the Middle East.
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Bank Beat---Florida and Georgia Banks Still in Trouble
Real estate speculation remains the obvious reason for the failures and Florida was among the first to experience the bubble burst in real estate.
First Commercial Bank was the 6th bank to fail in Florida this year. 29 banks were closed in the state last year. The FDIC confidential "problem list" was 888 the first quarter of this year, the highest since 1993, during the savings-an-loan crisis. 140 banks were closed in 2009, 157 banks in 2010. There are 47 closed this year and the year-end closing of banks is not expected to reach the previous year, but it is difficult to predict with so many foreclosures as many are continuing to walk away from their mortgages under water or just can’t continue to make the monthly payments.
The two branches of First Commercial Bank of Tampa Bay, Tampa, Florida were closed with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits. Readers can view the declining bank equity starting in 2007, as well as losses, non-current loans, and charge offs.
(In millions, unless spelled out)
2006: Recovered $43,000 (no charge offs)
Tier 1 risk-based capital ratio 2.05% as of March 31, 2011. Year-end 2010: 2.67%
As of March 31, 2011, First Commercial Bank of Tampa Bay had approximately $98.6 millionin total assets and $92.6 million in total deposits. Stonegate Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of First Commercial Bank of Tampa Bay. In addition to assuming all of the deposits of the failed bank, Stonegate Bank agreed to purchase essentially all of the assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $28.5 million.
McIntosh State Bank was 13th bank to fail in Georgia this year. Last year the number was 16.
The five offices of McIntosh State Bank, Jackson, Georgia were closed with Hamilton State Bank, Hoschton, Georgia, to assume all of the deposits. Founded September 18, 1964 the bank went from 113 full employees March 31, 2010 to 83 full time employees a year later for its two offices in Jackson, one each in Locust Grove, Mcdonough, and Monticello.
A Cease and Desist Order was issued to McIntosh by regulators in October 2009 citing numerous violations of safe and sound banking practices. Unfortunately there were many banks in this state under the same condition, primarily overextended in land and construction loans, nonfarm nonresidential land speculation, as can be seen in the year-end 2008 numbers of major decline in bank equity, rise in non-current loans, and second year of loss:
Tier 1 risk-based capital ratio March 31, 2011: 1.27%
Major charges off 2009 were $10.5 million consisting of $5.5 million in construction and land development, $2.6 million in loans secured by nonfarm nonresidential property, 41.2 million 1-4 family residential, and $966,000 commercial and industrial loan.
Year-end charge offs: 2010 $3.9 million in construction and land development, $2.5 million nonfarm nonresidential properties, $2.3 million 1-4 family residential properties and $613,000 in commercial and industrial loans. March 31, 2011 charge offs were $24,000.
As of March 31, 2011, McIntosh State Bank had approximately $339.9 million in total assets and $324.4 million in total deposits. Hamilton State Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of McIntosh State Bank. In addition to assuming all of the deposits of the failed bank, Hamilton State Bank agreed to purchase essentially all of the assets.
The FDIC and Hamilton State Bank entered into a loss-share transaction on $242.1 million of McIntosh State Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $80.0 million.
Tracking Bank Failures Map:
List of Bank Failures:
“Delivery and Acceptance Forms”
I have of late been involved as an expert witness in a few cases of fraud. The subject matter has been discussed many times in articles to the leasing industry by lawyers and writers such as me. But I am afraid many are not getting the message. The purpose of our lease documentation is to protect us, but what I observe is a cavalier attitude towards understanding how to use delivery certificates and acceptance forms properly.
To properly complete a lease transaction. you must confirm that the equipment is in place and working correctly. The statement that should be in every proposal and explained to each lessee is “the lessee warrants that the acceptance will not occur until the lessee has taken physical possession of the equipment and is satisfied with its ability to perform. In no case whatsoever should the lessee sign the acceptance certificate without meeting the foregoing conditions.” However this procedure is rarely explained to the lessee in our rush to complete the transaction and get paid.
Many companies in their “verbal” go through a list of questions, but often the lessee is coached how to answer by the vendor or even the discounter or salesman.
The amount of fraud from non-existent equipment is staggering. Often vendors want to get paid before equipment is delivered, or installed, or actually working. So the key word here is confirmation. How do you know the lessee is in possession of the equipment? How do you know the signature on the lease is genuine? How do you know the signature on the acceptance document is authorized? How do you know on what date the first piece of the equipment was received by the lessee for UCC purposes? “Confirmation” is the key.
Perhaps there are times when the size of the deal does not leave room for confirmation because it is small ticket or too far away, or in the rush to pay the vendor, maybe even the discounter or salesman involved, you are pressured thinking to yourself this is a good credit, been around a long time, and they should be responsible for any problems. Wrong!
It is reality that as the dollar size of the lease goes up, the investigation into the correctness of the documentation and the physical existence of the leased equipment also goes up. However, it should always be consistent. There should be a policy in place, and if the lease is too small for an official site inspection, why not have your salesperson do an equipment inspection and take a picture of the equipment to confirm the lessee is truly satisfied. Or even the discounter, get him involved as per the “reps and warrants” he signed. It may sound like a lot of extra work right now, but every fraud case I have worked on would not have occurred if it were not for the sloppy job of the lessor or funding source. Take photos with a digital camera and send the results over the internet.
It’s very easy to do and shouldn’t slow up the process, plus you have photo’s of the equipment in case they come in handy in a default.
If I were your funding source, I would ask to see your procedures for completing a lease and confirming the existence and acceptance of the equipment, perhaps on transactions over $50,000, and definitely over $100,000. And with photo’s. I don’t understand why a site inspection is not mandatory on $100,000 deals and above, or those vendors are thoroughly looked at, too. At least digital photo’s would help.
One procedure I like is obtaining for small ticket leases are the copy of the driver’s license from the person signing the lease because it contains their signature and personal residence. The higher the transaction generally requires a company resolution to show title and authority also helps prove their right to sign your lease. Occasionally a branch manager or plant manager may not be an officer of the company, but they must have some authority to sign so you need to get a copy of that authority.
My main concern here is using the documentation confirmation forms correctly such as a properly filled in delivery certificate and a properly completed acceptance form and checking the vendor for any changes that might have occurred in location of delivery or equipment changes. Then make sure the equipment exists and is in place and in use.
Welcome to the 2011 leasing business!
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at firstname.lastname@example.org or 502-649-0448
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
Site Inspection Services
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Leasing Industry Help Wanted
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Top Stories---June 13---17
Here are the top ten stories opened by readers:
(1) Ralph Petta, ELFA, Says Menkin doesn't speak the truth
(2) QuikTrak and others now being sued
(3) Bank Beat---The Good, the Bad, and the Ugly
(4) Roof's caving on BofA
(5) Benchmark Did Not Change its Name
(6) Leasing 102 by Mr. Terry Winders, CLP
(7) Leasing Companies No Longer Looking for Brokers or Out of Business
(8) Marlin Launches “New” Evergreen Vendor Portal! by Kit Menkin
(9) NEFA-Baltimore Crab Feast-Who Shows Up!
(10) Worlds Highest 25 Paid Musicians
Plano, Texas-- Adopt-a-Dog
Breed: Border Collie
"There is nothing in the world that I love more that time with people! I will stop everything to get attention. I’ve had several visitors, but so far no one has taken me home and I cannot figure out why. I love kids and can imagine my perfect home having children for me to be a loyal companion for. I have tons of energy and can keep up with kids or other dogs alike but when I am around people I am very calm. I am incredibly kind and fun loving. I keep everyone in stitches when I crawl into the smallest dog house in the yard. I am sometimes joined by another dog and we proceed to act out our clown routine. I am housebroken and get along great with all dogs, big and small. I am a total gentleman on a leash and am always willing to go for a long walk. If you are looking for that perfect dog, I think you just found him! Age: 6 years, Weight: 45 pounds"
ADOPTION PROCESS: Adopters must visit with an adoption counselor and complete an application. Same-day adoptions are approved based on the best matched home for each pet. We do not operate on a first come first served basis and reserve the right to reject an application based on the needs of the pet. Renters must provide proof of pet deposit and/or written permission by landlord to have a pet.
ADOPTION FEES: $200 for puppies under 6 months of age and $175 for dogs older than 6 months; $125 for kittens under 6 months of age and $100 for cats older than 6 months. Includes spay/neuter, vaccinations, microchip, heartworm test and heartworm preventative for dogs, Felv / FIV test for cats; all animals current on flea preventative.
This pet comes with a 30-day gift of Sheltercare pet insurance, the number one brand of pet insurance for adopted pets. Over 3 million adopted pets have already been insured!
Rescue Group: Second Chance SPCA
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
Home Equity Loan Losses Pile Up for Bank of America
Entrepreneur of the Year Finalist: Med One Capital
American Street Joins Baytree National Bank & Trust Company
Feds Seize $404 Million from Deutsche Bank
Change in Kansas law lures Comfort Dental franchise
Steven Udvar-Hazy wants new Boeing jet, not revamped 737
Private eye tells homeless man of inheritance
Small Group Rode LinkedIn to Big Payday
Miss California, a history buff, named Miss USA
Clarence Clemons, Springsteen’s Soulful Sideman, Dies at 69
More on Loan Modification Scam---PinnFund Perp.
(Leasing News provides this ad as a trade for investigations
Rory McIlroy crushes U.S. Open field for 1st major
Gay Wine Weekend in Sonoma draws 350-400
Psst: A Secret for White Burgundy Lovers
Consultants Seek Direction for Oregon Wine
Oregon wine grape crop gets cool start
Wine Institute Elects New Chairman David Kent
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
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This Day in American History
1675 - Abenaki, Massachusetts, Mohegan & Wampanoag Indians formed an anti English front. Wampanoag warriors attacked livestock and looted farms.
1921 - Circle, MT, received 11.5 inches of rain in 24 hours, a record for the state. The town of Circle received a total of 16.79 inches of rain that month to establish a rainfall record for any town in Montana for any month of the year.
1944 - Vice Admiral Marc Mitchner, commander of the U.S. Task Force 58, ordered all lights on his ships turned on to help guide his carrier-based pilots back from the Battle of the Philippine Sea.
1945--O'BRIEN, WILLIAM J. Medal of Honor
Rank and organization: Lieutenant Colonel, U.S. Army, 1st Battalion, 105th Infantry, 27th Infantry Division. Place and date: At Saipan, Marianas Islands, 20 June through 7 July 1944. Entered service at: Troy, N.Y. Birth: Troy, N.Y. G.O. No.: 35, 9 May 1945. Citation: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty at Saipan, Marianas Islands, from 20 June through 7 July 1944. When assault elements of his platoon were held up by intense enemy fire, Lt. Col. O'Brien ordered 3 tanks to precede the assault companies in an attempt to knock out the strongpoint. Due to direct enemy fire the tanks' turrets were closed, causing the tanks to lose direction and to fire into our own troops. Lt. Col. O'Brien, with complete disregard for his own safety, dashed into full view of the enemy and ran to the leader's tank, and pounded on the tank with his pistol butt to attract 2 of the tank's crew and, mounting the tank fully exposed to enemy fire, Lt. Col. O'Brien personally directed the assault until the enemy strongpoint had been liquidated. On 28 June 1944, while his platoon was attempting to take a bitterly defended high ridge in the vicinity of Donnay, Lt. Col. O'Brien arranged to capture the ridge by a double envelopment movement of 2 large combat battalions. He personally took control of the maneuver. Lt. Col. O'Brien crossed 1,200 yards of sniper-infested underbrush alone to arrive at a point where 1 of his platoons was being held up by the enemy. Leaving some men to contain the enemy he personally led 4 men into a narrow ravine behind, and killed or drove off all the Japanese manning that strongpoint. In this action he captured S machineguns and one 77-mm. fieldpiece. Lt. Col. O'Brien then organized the 2 platoons for night defense and against repeated counterattacks directed them. Meanwhile he managed to hold ground. On 7 July 1944 his battalion and another battalion were attacked by an overwhelming enemy force estimated at between 3,000 and 5,000 Japanese. With bloody hand-to-hand fighting in progress everywhere, their forward positions were finally overrun by the sheer weight of the enemy numbers. With many casualties and ammunition running low, Lt. Col. O'Brien refused to leave the front lines. Striding up and down the lines, he fired at the enemy with a pistol in each hand and his presence there bolstered the spirits of the men, encouraged them in their fight and sustained them in their heroic stand. Even after he was seriously wounded, Lt. Col. O'Brien refused to be evacuated and after his pistol ammunition was exhausted, he manned a .50 caliber machinegun, mounted on a jeep, and continued firing. When last seen alive he was standing upright firing into the Jap hordes that were then enveloping him. Some time later his body was found surrounded by enemy he had killed His valor was consistent with the highest traditions of the service.
1945- Anne Murray, one of the most popular female singers in the world, was born in Springhill, Nova Scotia. In 1966, she became a member of the chorus of "Singalong Jubilee," a CBC TV show from Halifax. Murray continued as a featured performer on the show until 1970, the year the success of her recording of "Snowbird" caused a dramatic increase in her popularity. It was the first disc by a Canadian female vocalist to earn a gold record in the US. During the 1970's, Murray developed into Canada's most popular female singer. And she began enjoying great success with pop and country audiences in the US and Britain. She began appearing frequently on "The Glen Campbell Goodtime Hour" on CBS TV. Her hits included "Talk It Over in the Morning," "What About Me" and "You Needed Me," a 1978 million-seller. In 1986, she opted for a new, more contemporary image, with the hit "Now and Forever," produced by David Foster.
1972-The Tallahatchie Bridge, made famous in Bobbie Gentry's "Ode to Billie Joe", collapsed into the Yazoo River. Although an article which appeared in the November 1967 issue of Life magazine showed a picture of Bobbie walking across it, she later said that she didn't have any particular span in mind when she wrote the song. It's also worth noting that Chocktaw Ridge, which is also referred to in the song, is located a hundred miles away on the east side of the I-55, and not anywhere near the Tallahatchie River as it passes through Leflore County.
2008-Jimmy Buffett announced that his Margaritaville Holdings has paired with New York gambling company Coastal Marina to buy the Trump Marina Hotel Casino for $316 million. His vast business empire also includes tequila, beer, frozen food, footwear, restaurants, a resort, a record label and a recording studio. In 2006, Rolling Stone magazine estimated Buffett's earnings at $44 million - the seventh-most of any musician.
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