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.
Thursday, June 30, 2011
Despite Fears, Owning Home Retains Allure, Poll Shows
######## 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.
Put a Clause Requiring Notification in Your Lease Contract
Leasing News believes it is time for all leasing companies to stand-up and become ethical when it comes to "Evergreen" and "Winter Green" clauses without notification to the lessee. Put a clause in your lease contract as well as require those who discount to you have the same clause notifying the lessee formally at the 90 day mark that the lease contract will expire after the next 90 days. If you can compute the exact date, put that in the certified letter with return receipt.
Also note in your contract a termination fee of $50 to cover the procedure, including the certified mailing of a 90 day notice at the 90 day mark that the original term of the lease is coming due, requiring the lessee to signify their position to return the equipment, to purchase it, or determine its "fair market value" before the expiration of the original term. If this is not met, the lease then proceeds to either month-to-month or an automatic twelve months (choose in your contract to put one or the other.)
If you have a termination fee, then increase it, and perhaps also charge for a UCC-3 release, add another $50.00.
As important, require all those who discount or sell leases to you that the notification requirement be included in the lease contract they discount to your company.
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Chris Walker, CLP, president CLP Foundation, GreatAmerica, is fighting an inoperative pancreatic cancer. He has a current up-date here:
Rosanne Wilson, CLP, P.B.P, former treasurer National Association of Equipment Brokers, on the Leasing News Advisory Board is also fighting cancer. Messages and tributes are posted:
Jeffrey Taylor, well-known leasing trainer turned author, has been at Scottsdale Health Care Hospital, Shea, Scottsdale, Arizona for 40 days. He does not have access to his lap top or the web.
Add Wisconsin to Notification Requirement Evergreen
This is an unofficial list:
Wisconsin now requires in contracts more than one year term that the lessor must provide the customer a written notice of renewal 15 to 60 days prior to the "deadline for the customer to decline renewal or extension. According to the provision, "failure to comply renders the automatic renewal clause unenforceable and results in the contract being terminated "at the end of the current contract term." If the lessor refuses to terminate the contract, according to 12.49(6), the customer can bring an action or counterclaim for damages equal to (1) "twice the amount of the damages incurred by the customer", or (2) the lessor "twice the amount of the periodic payment specified in the contract or $1000".
Alfredo Anguiano named vice-president and area manager for U.S. Bancorp Equipment Finance, to focus on clients in Los Angeles and Santa Barbara Counties. He previous was vice-president, Senior Account Executive, GE Capital (January, 2006-June, 2011), Vice-President, Citigroup (August, 1999-December, 2004). He has a MBA in Finance and accounting from Tulane University, A.B. Freeman School of Business (1997-1999)
Denise Beauchamp was hired a Vice-President, Government Leasing and Finance, U.S. Bancorp Finance, Jacksonville, Florida. Previously she was Key Government Finance, Leasing Manager, South, Key Equipment Finance (April, 2008-June, 2011), Senior Vice-President, Government Leasing and Finance, Banco Popular North America (August, 1998)-April, 2008) she held the same position at Kislak National Bank which was purchased by Banco Popular North American in 2005. She has an MBA, Finance, from University of Central Florida (1986-1989).
Jeffrey Giannelli named vice-president and area manager for U.S. Bancorp Equipment Finance, to focus on clients in Orange County, and the Ontario and San Diego markets. He previously was regional sales manager at Summit Funding Group(August,2010--June, 2011), Vice-President RBS Asset Finance (April, 2005-March, 2010), vice-president, Merrill Lynch Capital (2004-2005), Vice-President Fleet Capital (1999-2004), Vice-President, Sanwa Business Credit (1997-1998), Account Manager, GE Capital (1995-1997).
Steven Jason has been appointed Senior Vice-President at All Points Capital, New York. Previously he was managing member, JD Capital Management Associates (2001-June, 2011), Director of Lessor Credit, New World Lease Funding, LLC (2004-2010), Vice-President, Superior Bank FSB (1994-2002). He earned a BA in Economics from State University of New York at Albany (1977-1981).
William Johnson has joined United Capital Business Lending, Hunt Valley, Maryland as Senior Vice President of Sales and Business Development. He previously was Iowa/Illinois Market, Business Development Officer, Wells Fargo Bank (December, 2010-June, 2011), Banking and Finance Sales Training WDJohnson (July, 2010-June,2011), Senior Vice-President, Managing Director of Sales, CIT (March, 2008-July, 2010), Senior Vice President/Managing Director, Western Region, CIT(January, 2007-March, 2008), Vice-President of Sales, Regional Sales Manager, CIT (June, 2000-December, 2006), Vice-President, Director of Business Development, CIT (February, 1999-June,2000), Regional Account Manager, CIT (July, 1997-January, 1999), Business Development Office, The Money Store(June, 1994-July, 1997), Commercial Lending Officer, US Bank(October,1993-June, 1994), Vice-President, Regional sales manager, Wells Fargo Bank(April, 1989-August, 1993.) He has a degree in Business, University of Denver (1980-1984), and Southwest Minnesota State University (1978-1980).
Kurt Kolesha named vice-president and area manager for U.S. Bancorp Equipment Finance, to focus on clients in New Hampshire, Maine, Massachusetts, Rhode Island and Vermont. He previously was Business Development Manager, TCF Equipment Finance (June, 2010-June, 2011), Senior Business Development Manager, TCF Equipment Finance (food processing, packaging and plastics verticals) (May, 2009-June, 2010).
Timothy McCormick has been promoted to the position of Business Development Manager – Equity Placed., Commonwealth Capital Corp, Clearwater, Florida. He has worked fro Commonwealth Capital since May, 2008. He graduated Lehigh University, College of Business and Economics, with a BS in Accounting (2002-2006).
Michael Ruback promoted to vice-president, structured credit, Key Equipment Finance, Superior, Colorado. Previously he was Lead Credit Manager, joining Key, March, 2008, Vice-President, Merrill-Lynch (2001-2008). He has an MBA in Finance from the University of Nebraska at Omaha (2000-2001), degree from University of Kansas (1996-2000).
Letters? We get eMail?
FBI Operation Lease Fleece---Update
"In your “perp walk” in this morning’s newsletter, I did not see anyone who was six or seven, ages at which there might not be a strong sense of what is right or wrong. Chronologically, all seemed to be adults and I assume Adam Zuckerman has also passed the age at which reasoning begins. Morally, the “perps” are six or seven years in age and I wonder what kind of education and training they have given to their children, and in some cases, grandchildren.
"As guilty are those who keep advance payments, collect extra payments and include an Evergreen clause in their lease documents. If the industry wants to police itself these behaviors should be banned and for anybody who uses such techniques the various lease organizations should institute a wall of shame. These lease shenanigans have been going on forever it seems and yet we still have people who wonder why government is looking to get more involved in the industry. An Evergreen lease is really a euphemism; a better name would be Evertheft. Stopping egregious leasing practices should be a big part of all the lease organizations’ operations."
(Taking your comments one step further, funders who accept leasing contracts with Evergreen clauses without a notification process to the lessee are as guilty. They have co-responsibility, particularly when they "buy" the stream of payments and collect them from the lessee, and have an “agency” relationship. Editor)
Five Point Capital, San Diego, California
Financial Pacific, Federal Way, Washington
by Christopher Menkin
“I appreciate what you do as ombudsman for a wide variety of parties in our industry, and I congratulate you on the successes you've had helping folks who have been otherwise unable to get appropriate solutions.
“I have done business with Financial Pacific Leasing for more than 18 years and 700+ transactions approved by them. I have never experienced anything but total professionalism and integrity from them. I've been to their offices and met with them at various industry conferences. I feel like I know their corporate culture and feel it is a smear to suggest that Financial Pacific would 'cause their client's vehicle’s plates and registration to be canceled by the Massachusetts Registry of Motor Vehicles' as an attorney has apparently accused them.
“It's no surprise to me that an attorney would write such a provocative statement and use language including 'unwarranted action.' The lawyer is doing his job and I don't fault him for that. Obviously, however, just because a statement was written by a lawyer, doesn't make it true. In this particular case, I object to the implication in Leasing News that Financial Pacific 'caused' any part of Commercial Technologies, Inc's troubles with plates, registration or residual, when there is nothing in what you've reported that supports any such conclusion.
“Financial Pacific Leasing is a top-quality organization, and I'd hate to have their reputation sullied by having some lawyer's accusations and insinuations get published on the internet, on a site which presents itself as fair and unbiased, without at least challenging the lawyer's intentionally provocative statements. There are plenty of leasing companies with questionable or unethical business practices, but Financial Pacific isn't one of them.”
(When the writer of an article is noted, it means opinions expressed are the opinions of the writer and he certainly then can be "bias," meaning have an opinion. This was the case here. As to being fair, both Five Point and Financial Pacific's comments were printed without being edited. I hope that clears up your concern about being “fair.”
(The answer to your other question was in Paul Menzel’s comment, when Leasing News asked them to get involved, as well as the other questions, what they did was they called Five Point Capital. Why did this not happen in March?
(Financial Pacific does not have notification for Evergreen Clauses in their lease contract nor requires their discounters to include notification, and by this, indeed, supports non-notification of the lease expiring. In addition, in this complaint, it appears they did nothing to help the client until Leasing News got involved and neither party wanted the complaint to be brought public; again as evidenced by Mr. Menzel’s comment.
(As to the attorney letter, perhaps you did not see the original complaint by the lessee:
(“The worst part, is that not only did I get roped into an auto renewal, but they cancelled the registration without notice 5/3/11, when the lease went from Financial Pacific back to Five Point and at this point no one has gotten back to me on how to get this on the road.
(“Financial Pacific tells me Five Point has the title, but Five Point says they know nothing of the cancellation of my plates and has done nothing about it.
("Without that van on the road, it is really hurting my business! If I had to suck it up another year and pay because of the clause I will, but not if I can’t legally drive the vehicle.”
(The lessee was forced to go to an attorney and then Greg Wells says the letter written on June 1 never made it to Five Point, implying they would have done what? The earlier telephone calls from the lessee counted for nothing? ---and this is their second "Evergreen Clause" complaint in a month. The complaint was legitimate. Editor)
CODA--FIVE POINT CAPITAL CONTRACT, Paragraph 15:
Automatic Renewals: The States Respond
"Barry’s well-written piece in this morning’s edition is spot on…and no one should be surprised. Last year, I was contacted by legislators regarding my knowledge of evergreen practices and it took considerable restraint not to spill the beans! There is at least one opportunity to turn this potential liability into a solution, something we introduced when we launched Dell Financial Services.
"Though the lessee is contractually liable for EOT notification, communication from the lessors to the lessee can and should become routine. EOT notification should be viewed as another selling opportunity.
"Like so many other conflicts in life, we have the opportunity to self-police or in the absence thereof, to have the solution imposed upon us by others. From what I have observed, and what Barry implies, the latter is about to overwhelm the industry.
"One wonders where the ELFA, NAELB, NEFA, and other associations have been in at least circulating the issue for serious consideration….that’s what associations are for.
"The hell or high water lifeline was once thought to be the essence of the ability to offer leasing on a consistent basis and that has been at least partially attacked. The evergreen is likely to be attacked more aggressively."
Ralph Mango Project Management Coordinator | comScore, Inc. (NASDAQ:SCOR)
LEAF Investor asks what should he do
"**** ******* with LEAF told me 10 months ago that I should not worry about at least getting my original principal back from LEAF iii and 4. Now I am concerned this will not happen.
LEAF was sold to me as a safe fixed income investment for my retirement. I read the prospectus after I had already given my "trusted" financial advisor my money. I was told there was nothing to be concerned about. It sucks having one fourth of my retirement savings in limbo. I have now learned the difference between a certified financial planner with a fiduciary duty to their clients and others who are just interested in the largest commission."
(name with held)
"I would be interested in knowing more about the relationship between the LEAF executives and the Cohen family. I met all of them in Philadelphia in early 2009, and they had a positive spin on everything, making it seem like everything was under control and all problems were in the past. But the fact remains that the LEAF guys destroyed considerable asset value for the Cohen’s, so I question whether that relationship might have gotten chilly..."
(It appears they are no longer interested, thus the new Guggenheim relationship, and other changes. With FUNDS I, II, III, IIII losing money, I would imagine the parent company would not be happy to be associated with the poor performance, as well as reputation. Editor)
"I was reading your article today on LEAF and all the problems it is having. It truly is sad to see a once strong, viable company (I almost went to work for them) go down hill. I wanted to make comment to you that seem to run in my industry now, Asset Management, Collections, settlements. I called the CFO of a division of LEAF about a year ago. Of course I asked him if he had any bad debt over 1, 2 and 3 years that he would like us to collect on or possibly buy, and I was told, 'Our AR is just fine, no need for a "Special Assets" department.
“Same thing happened at ACC Capital and ***** ****. I have probably called ******* no less than once a month for 8 months, always to be told, 'We have NO PROBLEM with our aging AR, we are solid there'
".....I guess the point I am making and the question I am asking you, why are these people lying to me? I have been an AVID reader of yours for years and would appreciate any insight as to why someone would lie to me when they are going under and I could actually help recoup lost dollars. Maybe pride? Thanks for a wonderful story Kit. Keep up the great work!"
Alan J. Schwab
(They must have thought no one could help them. Could be pride. Don’t know why Lease Police does not have more clients, for instance. Must be pride here, too. Editor)
"I would like to inquire about your process for having our press releases published on your website. Can you please let me know if there is someone I can speak with about this or what your procedures are for submitting these types of news releases from our company?'
Ecologic Leasing Services
(Just send them in word to me as you have done this email. I do get them in pdf, but have to convert them.
(If I see a press release in a competitors edition, often I won't use it because it will be old by the time we put it on, or if I do use it, it will be low in group. I say this as you should send to us the late afternoon or night before ---we are M-W-F…so Sunday, Tuesday, Thursday---advance us a copy and then the others first thing in the morning or at same time.
(I also suggest sending, even if you think we may not use it, because if it is a slow news day, I will be printing more press releases than I normally do. Editor
History is what the industry is now
Isn’t that’s why the crab feast had 41, not 80???/
(name with held)
Leasing 102 by Mr. Terry Winders, CLP
"Mr. Winders' Leasing News article for today was right on point!
"Keep this great stuff coming!
"Our bank has always had a sliding cap on points depending on deal size so if we see a borrower that doesn’t question pricing and we feel the quote is excessive, our antenna is up and we are on high alert!
"If we need to offer skinny pricing so will the broker/lessor!"
Bob Robichaud, CLP
(This ad is a “trade” for the writing of this column. Opinions
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Leasing News: Special Father's DayEdition
With the Fourth of July just around the corner, we at Leasing News are proud to recommend five movies (easily available at Netflix) that you get you laughing, cheering, and saluting.
1776 (Peter H. Hunt, 1972): What more fitting movie to celebrate 4th of July with than one whose historical plot builds up to the 4th of July? The Founding Fathers were never more tuneful than in this beloved adaptation of Peter Stone’s Broadway musical hit, which takes place at the dawn of the Declaration of Independence. As the colonies get ready to come together into a nation in the days leading to July 4th, 1776, the Declaration is still sorting out its obstacles, from news of military struggle to reactionary landowners. John Adams (William Daniels), Benjamin Franklin (Howard Da Silva) and Thomas Jefferson (Ken Howard) are the main characters, stirring the people and making history with a slew of famous melodic numbers, including “But Mr. Adams,” “Molasses to Rum” and “The Less of Old Virginia.”
Yankee Doodle Dandy (Michael Curtiz, 1942): Who would have thought that it would take a foreign filmmaker to come up with the most patriotic of American movies? Austria-born director Michael Curtiz (“Casablanca,” “The Adventures of Robin hood”) pulled out all the stops in this irresistible celebration of America’s greatest features, from apple pie to the freedom of putting on a show. James Cagney won a well-deserved Best Actor Oscar for his portrayal of flag-waving composer and song-and-dance man George M. Cohan, who over the years went from child star at vaudeville shows to the country’s most beloved entertainer. Full of vintage tunes (“Yankee Doodle Dandy,” “You’re a Grand Old Flag,” “The Red, White and Blue”) and Cagney’s electrifying numbers, it’s the perfect Fourth of July movie.
Young Mr. Lincoln (John Ford, 1939): Arguably America’s greatest director ever, John Ford was on a roll in 1939, delivering classics such as “Stagecoach” and “Drums Along the Mohawk” in the same year. His greatest triumph that year, however, was this truly lovely portrait of the great president, Abraham Lincoln, when he was still a callow law practitioner facing his most decisive case. Beautifully played by Henry Fonda, Lincoln moves from Kentucky to Illinois in the 19th-century and, over the course of a dramatic trial, discovers the sage qualities that will in the future mark his leadership as the nation’s leader. Ford’s populist touch is felt profoundly in each delightful vignette, adding up to a moving and often funny, humanistic view of a great man.
Mr. Smith Goes to Washington (Frank Capra, 1939): Many critics nowadays dismiss Frank Capra (“It’s a Wonderful Life”) as a creator of corny fantasies, but the truth is that his pictures are much tougher and darker than their comfy reputation would suggest. Capra’s account of idealistic Jefferson Smith (beautifully played by James Stewart) and his fall from innocence when he comes to Washington not only shows how vulnerable the political system is to human venality, it also anticipates the government scandals of many years to come. With an extraordinary cast that includes Jean Arthur, Claude Rains and Thomas Mitchell, it’s a political film in the greatest sense—aware of injustice yet optimistic about humanity’s potential for change.
Air Force One (Wolfgang Petersen, 1997): What country wouldn’t feel safe with Indiana Jones himself calling the shots? Harrison Combining strength of character with a penchant for brave action, Ford is perfectly cast as America’s dream President in this crack action hit from thriller specialist Wolfgang Petersen (“Outbreak”). An ex-marine and gruff family man, he finds himself stranded with the enemy thousands of feet up in the air when foreign rebels (led by Gary Oldman) take control of the titular presidential airplane. Boasting tightly directed suspense and a rock-solid supporting cast that includes Glenn Close, William H. Macy and Dean Stockwell, it’s smarter-than-your-average-blockbuster fare graced by Ford’s almost Gary Cooper-like sense of integrity.
Tacoma, Washington-- Adopt-a-Dog
BOO - ID#A257401
“My name is BOO.
“I am a spayed female, gold and white St Bernard - Rough Coated mix.
“The shelter staff thinks I am about 8 years old.
“I have been at the shelter since Jun 15, 2011.”
Older dogs are better behaved, no longer puppies, and when
For more information about this animal, call:
Tacoma/Pierce County Humane Society
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
(Leasing News provides this ad as a trade for investigations
Kelly Reale, vice-president, Key Equipment Finance
Inside Rental, Leasing Services stocks
Lender proves to be a costly buy for Bank of America
Mortgage Performance Improves During First Quarter of 2011 as Large Number of Troubled Loans Works Through the System
First Foundation Bank Announces Agreement to Acquire Desert Commercial Bank
Ex-Citigroup executive charged with embezzling more than $19 million
Unemployment rises in more than half of US metros
Oracle gives its version of break-up with HP
Sonoma Valley Bank shareholders file lawsuit blaming CEO
Oracle gives its version of break-up with HP
CEO Pay | A 13% gain for Northwest CEOs in 2010 after 2 down years
Despite Fears, Owning Home Retains Allure, Poll Shows
49ers rookie QB Kaepernick shows off rifle arm
Former Raiders star comes out of retirement for kids
Bankruptcy filing mars Brooklyn-born franchise
Brown signs tax bill; Amazon tells California affiliates it will drop them
Direct-To-Consumer Wine Shipments Increase Significantly
Gallo Buying Edna Valley Vineyard
Vinexpo 2011: Thousands Attend France's Premiere Wine Event
Visitors from China More Than Double At Vinexpo, To Lead All Foreign Attendees
Napa vintner, hotelier realizes dream with new boutique Hotel Hanford
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
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This Day in American History
1629-- The settlers of Salem, Mass. appointed Samuel Skelton as their pastor, by ballot. Their church covenant, afterward composed by Skelton, established Salem as the first non-separating congregational Puritan Church in New England. They had arrived on June 27 as the first settlers of Massachusetts Bay Colony, entering Salem Harbor. Led by John Winthrop, they were 900 strong, and arrived in five ships.
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