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Jeffrey Taylor in Hospital
James Durbin wows 30,000 in Santa Cruz
######## 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.
Jeffrey Taylor in Hospital
Superbowl of Leasing competition
Near the end of last month long time leasing instructor Jeffrey Taylor sent to friends who received his daily newsletter that his cough had gotten so bad, he was going to go to the hospital. The cough started before his 60th birthday, but nevertheless he went to Paris, France with Toby, he wife of 21 years, as they had planned the celebration for quite some time. When he came back, he went to his doctor, then another "expert," as they thought he had an allergy (in Scottsdale, Arizona?) He didn’t believe them, especially with $3,000 for treatments.
It got so bad, he finally went for a full examination at the hospital, X-Ray, and then the hospital ordered a Cat Scan, where he wrote in his April 28th newsletter the results: he was diagnosed "...with a constricted heart, stomach ulcer and a malignant melanoma in my right lung."
On May 9th he wrote what seemed a very serious understanding of his condition, that he was going to go in for more tests to see what could be done. He didn’t write any more news editions. On Sunday he had a heart attack and was taken by ambulance to Scottsdale Health Care Hospital--Shea, 9003 East Shea Boulevard, Scottsdale Arizona 85260 Telephone 480-860-3000.
Jeffrey is presently is in ICU, and according to his wife, not taking visitors and has not talked on the telephone at this time, nor is he well enough for a laptop. She said today (Tuesday) he looked like he was doing much better.
Leasing News quoted Jeffrey Taylor often when he was in the leasing business, as he also had one of the first on line news editions about leasing with 16,000 subscribers, wrote several books on leasing (including one, predicting the leasing economy and results today), realized he was an alcoholic (and wrote about it), left leasing, moved to Scottsdale, Arizona, where he was a travel agent (cruise traveling, mostly for he and his wife as they took a lot of trips), went into day trading as well as real estate, then began lecturing on investing in films (following an outshoot of trying to sell a film about his bout with alcohol) as well as continuing radio interviews across the United States regarding alcoholism.
His books include “Selling Leasing In A Tough Economy”, “The Future of Equipment Leasing”, "A Gentleman Drunk/Un Caballero Borracho", “Going from W2 to 1099”, and “Film Finance For Beginners.”
Lecture on Film Finance:
2006: The Future of Equipment Leasing Book Review:
Books by Jeffrey Taylor:
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WebCast May 23 and June 01
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Loan/Lease Statute Up-Date
This is a summary and should not be viewed as a legal interpretation or containing all the requirements. Consult an attorney with leasing experience is highly recommended.
Most states exempt banks. This is commercial business only.
Whether some states mix consumer and commercial loans today is not know, although current court cases are recognizing personal guarantees and proprietorships to fall under some consumer guidelines.
Arizona: All “advance fee loan brokers” must register annually with the state. Arizona Revised Statutes, sec. 06-1303-1310 (1996)
Alabama: A simple business, vocational, occupation license is required.
Alaska: Alaska Small Loan act does not distinguish between consumer and commercial loans, one of the reasons many leasing companies do not do business in this state. Requires a license on transactions under $25,000.
Arizona: Requires a state license not difficult to obtain to those who have applied to be on a Leasing News list.
Arkansas: All brokers of “a loan of money, a credit card or a line of credit” may not assess or collect an advance fee. In addition, all brokers must register with the Securities Commissioner, post a surety bond of $25.000 and have a net worth of $25,000. Arkansas Code Annotate sec. 23-39-401 (1995)
California: No person shall engage in the business of a finance lender or broker without obtaining a license from the Commissioner, unless a bank or conducting true “operating” leases. California Financial Code, Division 9, Chapters 1 and 3
Connecticut: Brokers of “unsecured loans” may not assess or collect an advance fee. Connecticut General Statues, sec. 369-616 (1997) A license to make small loans of under $15,000 is required. This is aimed at “retail buyers” and whether a capital lease or commercial entity is defined is not known at this time.
Delaware: License required for commercial lessors for “finance or small loan agencies.”
Florida: Brokers of a “loan of money, a credit card, line of credit or related guarantee, enhancement or collateral of any nature” may not assess or collect an advance fee. Florida Statues, Chapter 687.14 (1992)
Georgia: A broker of “loans of money, a credit card, a line of credit or related guarantee, enhancement or collateral of any kind or nature” may not assess or collect an advance fee unless such fee is for “actual services necessary to apply for the loan.” Official Code of Georgia Annotated, sec. 7- 7-1 (1992)
Idaho: No fee may be collected unless a loan is actually made. Idaho Code, sec. 26-2501 (1992)
Illinois: Code , 815 ILCS 175/15-5.03 Under the Act, a ”loan broker” means any person who, in return for a fee from any person, promises to procure a loan for any person or assist any person in procuring a loan from any third party, or who promises to consider whether or not to make a loan to any person. 815ILCS 175/15-5- 15(a)
Specifically excluded from the application of the Act, however, are (1) any bank …regulated by any service loans for the Federal National Mortgage Association… (3) any insurance producer or company authorized to do business in [Illinois], (4) any person arranging financing for the sale of the person's product, (note that this exception does not apply to any person selling someone else's product and only applies to “the” person's product, implying the exception is for the owner of the product arranging for financing), (5) any person authorized to conduct business under the Residential Mortgage License Act of 1987 and (6) any person authorized to do business in [Illinois] and regulated by the Department of Financial Institutions or the Office of Banks and Real Estate.
“In the event that the Act is violated by the broker, the Secretary of State is empowered by the statute to make investigations and examinations, suspend or evoke the broker's approval, subpoena witnesses, compel the production of books and records, order depositions and obtain temporary restraining orders and injunctions against the broker. In the vent that a violate is found, the Secretary of State may impose a fine in the amount of $10,000 for each violation and the broker shall be liable to any person damaged in the amount of tactual damages plus attorneys fees.
This appears as standard language on most states.
Iowa: A broker of loans of “money or property” may not assess or collect an advance fee except for a “bona fide third-party fee” and a broker must obtain a bond or establish a trust account and file required documents with the Commissioner or Insurance. Iowa Code, sec. 535C (1992)
Kentucky: Brokers of “a loan of money, a credit card, a line of credit or related guarantee, enhancement or collateral of any kind or nature” may not assess or collect an advance fee. Kentucky Revised Statutes Annotated, sec. 367.380 (1992)
Louisiana: A broker of loans of “money or property…whether such agreement is styled as a loan, a lease or otherwise” must obtain a surety bond or establish a trust account in the amount of $25,000. A broker may not collect an advance fee but may collect an “advance expense deposit for commercial loans” only for actual expenses incurred in obtaining the loan. Louisiana Revised Statutes Annotated, sec. 9:3574 (1993); Louisiana Revised Statutes Annotated, Sec. 51:1910 (1992)
Personal Property Lessor License required.
Minnesota: Regulated Loans License. No person “shall engage in the business” of making loans not exceeding $100,000 without first obtaining license from Commerce Division. Violation is a misdemeanor and loan is void. This will apply to “capital leases.”
Mississippi: A broker or loans of money may not assess or collect an advance fee and can be fined up to $5,000 for each violation. Mississippi Code Annotated, sec. 81-19-17 (1997)
A license is required for conditional sales contracts.
Missouri: A broker of loans of “money or property” may not assess or collect an advance fee. Missouri Revised Statues, sec. 367 300 (1992)
Montana: A person who knowingly engages in the business of a sales finance company in Montana without a license can be punished by a fine of not more than $500 and/or imprisonment of not more than six months.
Nebraska: A broker of loans of money may not assess or collect an advance fee. Nebraska Revised Statutes, sec. 45-189 (1993) Installment sales license required except for state banks and trust and loan companies regulated by Nebraska or any other state or chartered by the United States.
Nevada: Requires license for each office or other place of business, considers capital lease as loan and “lending.”
New Hampshire: Requires small loan license, whether applies to Capital Leasing not known.
New Jersey: Brokers of “loans of money” may not assess or collect an advance fee. New Jersey Rev. Statutes, sec. 17:10B (1992)
New Mexico: Currently requires Brokers/Lessors to register for Licensing under the New Mexico Mortgage loan Company or Loan Broker Act with the Financial Institutions Division of the State of New Mexico. Banks with Brick and Mortar within the State of New Mexico are exempt. Prior to licensing applicants must submit the Following:
New York: Any advance payment or deposit must go into an escrow account until a transaction proceeds. License is required to make business and commercial loans less than $50,000.
North Carolina: A broker of “loans of money or property…whether such agreement is styled as a loan, a lease or otherwise” must obtain a surety bond or establish a trust account in the amount of $25,000 and obtain a license. North Carolina General Statutes, sec. 66-106 (1992) Lenders who advance more than $1 million annually, in aggregate, in NC are exempt.
North Dakota: Brokers may not accept an advance fee unless the broker is licensed.
North Dakota Century Code, 13-04. 1-09.1 (1993)
Ohio: Department of Commerce, Division of Financial Institutions (Certificate to engage in the business of a credit services organization in accordance with the provisions of Sections 4712.01 to 4712.14 of the revised code of Ohio, subject to all the provisions thereof and to the regulations of the division.) Ohio Department of Taxation requires a "Vendor's License" under provision 5739.17 of the Revised Code (...is hereby authorized to sell tangible personal property and selected services at the retail location specified below.) This also makes the lessor responsible for all taxes with penalties for not doing so.
Ohio: No person shall engage in the business of lending amounts of $5,000 or less without a license.
South Carolina: A broker of “a loan of money, a credit card, a line of credit or related guarantee, enhancement or collateral of any kind or nature” may not assess or collect an advance fee. (South Carolina Code Annotated, sec. 34-36-10 91992) A license is required for the “business of lending in the amounts of $7,500 or less” regarding consumers. Has won cases against finance for business involving individual guarantees.
Texas: Consult an attorney familiar with Texas finance and lending laws.
Vermont: Commercial lenders and sales finance companies must obtain a license. Does not apply to true leases and leases for security (finance leases.) Does apply to Equipment Finance Agreements.
Here is a 2006 Equipment Leasing and Finance Association forum list.
Top Ten Cities with the Highest Credit Scores
The national average was 747.10 at the end of 2010, according to Experian, one of the three big credit-reporting agencies.
Green Bay, Wisconsin
Sales Makes it Happen
It is interesting to note that CIT is using several vendor program ideas in UK and France mentioned in previous columns. They teamed up with Lenovo Financial Services. Most likely the programs were tested first here in the United States: "0%" financing for a 36 month residual-based lease (most likely including a discount up-front from the vendor), online reward program, paying all deals within 24 hours.
They learned from one of my seminars to offer “any month leasing;” to let lessees choose the monthly payment budget by selecting the number of months that fit their need, meaning 33, 42, or 51 payments rather than the standard 24-36-48-60 month. I was personally using it as far back as 1981 at the First National Bank of Louisville.
CIT has also offered a long time quotation program, very common here in the United States, and at one time, an online vendor program that allows dealers to follow the progress of transactions. They had a unit in Miami, Florida, that may still be active in such a program that allegedly automated the progress of an application through the entire process to the way bill of the check sent out overnight.
These automated programs are common now, available to one man independent broker operations as the Boettigheimers developed for Pioneer Capital, mailing disks to brokers, dealers and franchisors to use over ten years ago. It still didn’t beat the human touch, meaning speaking to a "live" person to answer questions or make prognostications, but dealing in different time zones, it certainly was much better than voice mail or when you couldn’t reach your “rep” on the telephone.
One of the programs mentioned earlier, readers have asked me to go over again, is the floating skip concept for lessees. It is designed for them when they do not know when they may need an opportunity to by-pass a payment or two.
If you were pricing a 60 month lease on $50,000 with a bargain purchase option ($100) at a 12% rate and one payment in advance the payments would be 60 x $1,101.21. However, let’s say the lessee wanted a few skips for contingencies, how would you price it? First, let’s talk about 5 floating skips over the 60 months.
To price the transaction you have to assume worst case and that is the lessee wants to skip the first month of every year. That means that the schedule would look like this 1x $0 followed by 11 x Payment and repeated five times to make up the 60 months. The payments at 12% would be 1 x $0 followed by 11 x $1,207.43. Clearly the $1,207.43 is higher than $1,101.21 but this can be explained because there are only 55 payments in this program.
To book the transaction correctly you must book it as a 55 month lease. Therefore, the lessee gets a invoice every month. When the lessee wants to skip a payment they mark skip on it, have the signing authority sign it and return it to the lessor. Then you inform the accounting department that you have granted a one month extension to the lessee moving the lease one month forward. This has the possibility of happing five times during this lease.
The lessee is informed at the beginning that they only have one month the first year except if they do not use the skip in any year it moves forward and adds to the available skips in the next year. I have seen many a lessee save their skips for a time when the equipment was taken out of service for major servicing or overhaul requirements. If it happened in the third year and they had not use any skips they could skip three months in a row. This means they are more likely to properly maintain the equipment because they can use the money usually earmarked for payments to fix the equipment.
In my experience, with this program, 74% of the time the lessee’s failed to use any of the skips and the result was a 200 basis point rise in my yield because my 60 month lease paid off in 55 months. But please understand they have a 60 month lease and are entitled to use the equipment rent free for the last 6 months or whatever time is remaining. However, they usually replace the equipment after the last payment was made.
This works on true leases, with residuals or high purchase options, as well but the lessee may want to use the remaining months.
The program is like payment insurance, it works well with lessee’s that are doing well but may be in a tight cash position. Many lessees who have a pessimistic view of the future are the first to jump at it. It is not intended for lesser credits or start ups. Also, most of the lessor’s that have one of the quality bookkeeping systems handle this very well, with the one month extension requirements. You need to check to see if extensions are possible in your system prior to offering this type of program because some of the old or home grown software bookkeeping programs cannot handle it, and the accounting department will come after you with pitchforks.
Creating programs to support vendors and customer needs is very much a part of commercial equipment leasing and the future will require us to become very creative.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at email@example.com or 502-649-0448
Previous Sales Makes it Happen Columns:
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
SparkPeople—Diet and healthy living community
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NEFA invites all association members to Annual Crab Feast
June 9th--Baltimore, Maryland
The National Equipment Finance Association has opened its annual Crab Feast, June 9th, 2011, in Baltimore, Maryland, to all industry professionals meaning members of all leasing associations can attend at NEFA member prices: $65 per person.
The popular and long running event, originally started by the Eastern Association of Equipment Leasing, will be held again at Obrycki’s, one of Baltimore’s most popular crab houses.
“This event is networking in its purest form”, said Gerry Egan, Executive Director of NEFA. “It’s casual and it’s fun. It’s a chance to meet new folks, reconnect with folks you haven’t seen in awhile and swap industry information and stories —maybe even exaggerate a few of those stories— and do it all while enjoying some of the best steamed crabs, crab cakes and more that Maryland has to offer.”
Co-Chairpersons for the event are industry veterans Nancy Pistorio, CLP, of Madison Capital, and Bruce Winter, CLP, of FSG Leasing.
According to Nancy, “it’s a joy to plan this since everyone always has such a good time. We know people who haven’t missed this event in over ten years. It’s a chance to interact on a casual and personal level with people you do business with and make that kind of connection with people you’d like to do business with.”
Bruce Winter said, “We encourage all industry participants to come because it’s a chance to get to know people you might not meet through other association specific events. I think that’s good for everyone, for the whole industry.”
Last year, attendees came from as far away as California. For people traveling from out of town, NEFA has arranged special room rates and benefits at a unique and eco-friendly Fairfield Inn & Suites including free Wi-Fi and continental breakfast. More information is available on the NEFA event registration page.
To help the restaurant plan ahead, attendees are asked to pre-register and can do so.
“We expect a high turnout this year, given the general enthusiasm in the industry right now,” said Egan. (Over 70 attended last year).
Registration: 4:30 p.m. - 5:00 p.m.
Fairfield Inn & Suites Reservation ($169.00 special rate)
(Leasing News provides this ad as a trade for investigations
### Press Release #############################
EquipmentEngine Launches Asset Management Resources
EquipmentEngine is pleased to announce the launch of its Lender Solutions site. Through the site, Lender Solutions will provide a complete range of resources from state and local repossession requirements to appraisal and re-marketing services.
Lender Solutions supports equipment leasing companies and asset based lenders by providing a single point of access that covers the otherwise disjointed steps faced by portfolio managers. The service has been well received by many of EquipmentEngine’s existing partners.
“We are committed to creating a leap in value for asset management and collection professionals that service both billion dollar commercial equipment lease and loan portfolios and niche equipment lease and loan portfolios,” said Richard Henderson, President of EquipmentEngine. “Every portfolio or collection manager needs to access the same tools and resources to do their job. And they have to trust the job will be done right and with integrity. To that end, we have successfully packaged up transparency, knowledge and experience into an easy to navigate site that is supported by the best logistics team in the market.”
Henderson said he aims to make the site “the premier gathering place for lending and asset management professionals and to set the standard for technology, resources, and service levels that asset managers should expect from their service providers.”
For more information about EquipmentEngine and Lender Solutions, please visit http://www.lendersolutions.equipmentengine.com or http://www.equipmentengine.com or call 1-855-EENGINE.
#### Press Release ##############################
Archives, May 18, 2007
(April 24,2008 he was named President---
(Irvine, CA) Balboa Capital Corporation announces the appointment of Phil Silva as Executive Vice President. Mr. Silva will be responsible for growing the company's Vendor Channel alongside the company's existing Direct, Commercial, and Broker Channels.
Mr. Silva previously developed and managed the National Accounts Group for American Express Business Finance (AEBF). He was the General Manager of the Healthcare, Franchise and Loan segments, along with Marketing, prior to and through the acquisition of AEBF by Key Equipment Finance. Prior to that, he worked for companies such as Transamerica Distribution Finance, Dana Commercial Credit and Master Lease Corporation, in sales and sales management capacities. Mr. Silva holds a Bachelor of Arts degree in Business Management from Whitworth College in Spokane, Washington.
"I believe Balboa Capital is nimble and entrepreneurial in their execution and decision making. They possess unique service, training, marketing and technology-based qualities and strengths developed for their existing sales channels that will provide value to small and medium-sized vendors and their customers. I am excited about assisting Balboa in growing their vendor channel," said Mr. Silva. Among his first responsibilities will be to add a Vendor Sales Leader and an Inside Sales Manager to the department.
About Balboa Capital
((Please click on ad to learn more))
Scottsdale, Arizona-- Adopt-a-Dog
"Lucky is a sweet dog. He loves to play with other dogs, loves people big and small. He is housetrained and leash trained and we were told he can do tricks.
Lucky should only go to a home with other dogs, he loves being with small dogs. He bores easily and hates to be left along for too long.
"We are looking for a forever home for this boy. His new family should be active and with a knowledge of Border Collies- please do research on the breed before applying for this dog."
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
LinkedIn may be biggest tech IPO since Google
Air Lease reports $3.2-million first-quarter profit
H.P. Profit Up 5%, but PC Sales Are Declining
Dell Profit Tops Estimates on Corporate Spending
Bay Commercial Bank expands into Silicon Valley
Saks 1Q profit jumps to $28.4M as luxury market rebound
Creation Myth: Xerox PARC, Apple, and the truth about innovation
Alex Smith affirms he's likely to stay with 49ers
Governor Brown signs contracts with 6 state unions
Napa winery deal signals return of lifestyle buyers
At Nice Matin, a Wine List That Hits All the Marks
New app to help confused wine drinkers
Wine Train and Mondavi Winery Team Up on New Class
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in American History
1631 -The General Court of the Massachusetts Bay Colony decreed that 'no man shall be admitted to the body politic but such as are members of some of the churches within the limits' of the colony. (Separation of church and state was an unthinkable concept in early American colonialism. In contrast to what is taught in schools, most were not escaping for religious freedoms, but were missionaries with strong prejudices against other religious groups except for their own.)
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