Leasing News - information, news, education and entertainment for the commercial bank, finance and leasing industry

Platinum Rapid Funding Group Exposed
Partners with 15,000 Member Asian American Hotel Association
by Christopher Menkin

The press release announced that "Platinum Rapid Funding Group Partners Up With The Asian American Hotel Owners Association" to provide "rapid access to working capital." The press release stated the AAHOA "has over 15,000 members and is the largest hotel association in the world." (1)

All these new business funding companies say they have a new way of evaluating applications "quickly." Several don't even run consumer credit reports (one said one portfolio had 43% they never ran a consumer credit report).

It is the age of algorithms and relying more on a company or person's Facebook page to make a credit decision, as this is a big secret to saying yes or no of $50,000. I remember when I first started out the thrift companies in nature had these idiosyncrasies, such as if the applicant had an unlisted telephone number: a turn down; talking to the landlord to see if the payments were late: a "no-no; if this Santa Barbara Bank & Trust Credit Manager was slipping and sliding on approving a deal, he would have brokers ask for the applicants three competitors to learn about them: funny, I found each time I complied with this, the deal was approved, as he must have gotten good reviews. Of course, certain industries with their equipment were not accepted such as vending machines and tanning booths. Banks only would make a certain percentage acceptance from one industry
regardless of the credit.

To learn why Platinum's magical procedure was, I went to their web site to see what they required for their fast answers, and "When Your Bank Says No, You Can Bank on US!"
https://platinumrapidfunding.com/

It seems Platinum specializes in “Credit Card Cash advance using ACH Funding from $5,000 to $1,500,000." Hotels would therefore qualify.

This is what they require:

Voided check
Business license
Business lease (mortgage statement if property is owned)
3 cancelled rent checks (mortgage statement if property is owned),
Home utility bill
Landlord contact
3 trade references

They also want to qualify the “merchant” requiring their most recent tax returns (last three years) as well as financials.
https://platinumrapidfunding.com/parner-with-us/

They also pay "commissions "…within a week of funding. WE PAY THE SAME ON RENEWALS: As soon as any funded merchant is 50% paid back on their advance, they are eligible for renewal. We will immediately call and email to notify you when they are 45% paid back to aid in the process."

National Funding, advertising in deBanked.com pays "up to 20% commission." They were not alone with this, with all that I saw guaranteeing commissions on the renewals, too." Evidently the rates were high enough to pay these commissions as well as syndicate or bundle the transactions to banks and others.

Many say these non-bank transactions are available because of Financial Technology. Many use the latest software and have IT departments larger than the credit department, but they really are successful because they have access to the cash from private investors and other groups, leveraging this through banks and investment firms. As long as the money comes in, it works, but when it does not come in, it collapses like a Ponzi scheme.

(1) Press Release
http://www.prnewswire.com/news-releases/platinum-rapid-funding-group-ltd-partners-up-with-the-asian-american-hotel-owners-association-300251783.html

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CFPB Push to Widen Access to Class-Action
Suits Creates Risks, Reports Moody

Moody's Investor Service notes the Consumer Financial Protection Bureau proposal regarding ending US Financial products the present class-action as presented will create "new risks for financial services companies and US asset-backed securities (ABS).

As it stands now, the proposed legislation is limited to contracts after the proposed rule's compliance date takes place. Moody's notes, "if adopted in its current form – would likely have no immediate material effect on potentially affected parties such as US banks, finance companies and securitizations. The CFPB will accept comments on the proposed rule for 90 days after its publication in the Federal Register. Under the proposal, the regulation would cover only contracts entered into beginning 211 days after the publication of a final rule.

"The grandfathering of existing contracts would be particularly meaningful for products such as credit cards and bank accounts that customers typically use over long periods. The CFPB’s proposal states explicitly that amendments or modifications to pre-existing contracts would not require the provider to insert language into the agreements allowing consumers to pursue class-action lawsuits. However, the agency sought comment on whether that approach was too narrow, so it could change in a final rule."

"Over time, the rule would expose banks and finance companies to an increasing risk of litigation and settlements with customers, as well as potential reputational damage. The impact would depend on the size and success rate of class-action lawsuits. Nevertheless, the rule would also expand future legal risks for banks when bank profitability is constrained and their regulatory and litigation risks continue to be elevated. US-based global investment banks set aside $139 billion in litigation provisions between 2008 and 2014 and continue to face outstanding legal actions related to US mortgages and other matters.

"In turn, if companies negatively affected by lawsuits play key roles in securitizations, a weakening of their financial position could also weaken the credit quality of the transactions in certain cases, especially if the companies already have weak credit profiles. Lawsuits could also have other negative credit effects on securitizations. Such effects could occur, for example, if legal and/or regulatory settlements require that loan servicers alter their collection practices; if representations and warranties by securitization sponsors fail to cover challenged payment terms or practices; or if sponsors are unable to honor obligations to repurchase impaired loans."

(Leasing News provides this ad as a trade for investigative
reporting provided by John Kenny)

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Leasing Industry Help Wanted

Sales Representative
San Francisco

2 to 3 Years in Financial Services

The keys to success at ATEL include:

• Ability to learn quickly and effectively
• Money motivated
• Competitive, never say die attitude

"You were born to win, but to be a winner,
you must plan to win, prepare to win,
and expect to win." - Zig Ziglar

For Further Information, click here

www.atel.com
ATEL Capital Group, headquartered in the Transamerica Pyramid in San Francisco, is one of the largest independent equipment financing companies in the US serving a wide range of industries, focusing on Fortune 1000 companies and other near investment grade credit corporations. Since 1977 ATEL has priced, structured and negotiated in excess of $30 billion of equipment lease financing transactions

Credit/Syndication Analyst

Position located in Denver, Colorado or Gig Harbor, Washington.

For the right candidate ability to work remote may be an option.

Commercial equipment leasing/finance experience preferred, but must have 2+ years commercial credit experience, strong knowledge of business and credit principles.

For more information, please click here

www.bsbleasing.com
A Funding Source for Small Business Since 1981

For information on placing a help wanted ad, please click here:
http://www.leasingnews.org/Classified/Hwanted/Hwanted-post.htm

Please see our Job Wanted section for possible new employees.

California SB 1428 Has Been Amended
Introduced by Senator Ed Hernandez (D-Azusa)

Originally the bill sought to allow consumers a means to cancel services online, targeting automatic renewal contracts and states that if allowed to sign up online, then a similar means of cancellation should be provided to consumers. It has deleted the provision and made it to include any contract that includes automatic renewal.

"A business that makes an automatic renewal or continuous service offer that is subject to Article 9 (commencing with Section 17600) of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code shall provide a consumer with an email address or option on the business’ Internet Web site for the consumer to communicate his or her decision to not renew the subscription or purchasing agreement. Within 24 hours of receipt of a consumer’s communication to not renew the subscription or purchasing agreement, the business shall notify the consumer of receipt of the consumer’s communication. The business shall honor the consumer’s decision to not renew. The definitions of “automatic renewal,” “consumer,” and “continuous service” provided in Section 17601 of the Business and Professions Code shall apply to this section."

The bill does contains the requirement regarding informing the consumer that the original contract has ended, prohibiting charging the consumer’s credit or debit card or the consumer’s account with a third party for an automatic renewal or continuous service without first obtaining the consumer’s affirmative consent; andfailing to provide an acknowledgment that includes the automatic renewal or continuous service offer terms, cancellation policy, and information regarding how to cancel, as specified.”

"This bill would require a business that makes an automatic renewal or continuous service offer that is subject to the above-described requirements to provide a consumer with an email address or option on the business’ Internet Web site for the consumer to communicate his or her decision to not renew the subscription or purchasing agreement. The bill would also require, within 24 hours of receipt of a consumer’s communication to not renew the subscription or purchasing agreement, the business to notify the consumer of receipt of the consumer’s communication. The bill would require the business to honor this decision."

A third reading of the bill is being scheduled:
http://www.leasingnews.org/PDF/ThirdReading2016.pdf

Legislative Counsel Digest:
http://leginfo.legislature.ca.gov/faces/billVersionsCompareClient
.xhtml?bill_id=201520160SB1428

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

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Burden of Proof “Tax Lease Requirements”

It appears that there will be a fair amount of tax leasing this year for a number of reasons, especially to beat the deadline of the company FASB accounting changes. So I thought it would be a good idea to review what a true tax lease requires. The problem with understanding what is required is that there really is nowhere to go to learn what is required. You can start with RR 55-540 created in 1955 when leasing was in its infancy and also Revenue Procedure 76-21, a ruling on leverage leasing, however in you have to include a number of federal tax court decisions. In addition many additional rules on leasing from the uniform commercial code and GAAP accounting requirements shaped how the IRS looks at a true lease today.

So you almost need to understand the concept of what the IRS thinks a lessor should act like to understand the current requirements.

To begin with the tax payer (you) has the burden of proof in a tax audit. That means you are required to “prove” you have a lease and not a loan. Also there is not just one issue that makes or breaks the answer and it is not a scale to see if you have more correct answers than wrong ones. You must “prove” your position and the facts at the time of the lease commencement will rule.

The issue is do you have the “right” to obtain capital recovery benefits, known as depreciation, and does your lessee have the “right” to expense the rent? This is not a legal question of ownership because the right to capital recovery benefits goes to the question of who is making a profit from the “use” of the equipment. Clearly the leasing company has provided the lessee with possession and use during the term of the lease and also passed the requirement, under a net lease, for the lessee to maintain and pay all costs, including taxes, associated with the equipment. A strong case against you!

The lessor claims that because they are receiving rent they are making a profit, but the IRS looks at our mark-up like interest and the fact that we are not in possession of the equipment works against us. So to claim our benefits we start with two requirements. One, the term of the lease “cannot” exceed 80% of the equipment’s useful life. Two, we must take a “meaningful” residual.

By using an “Equipment description and use form” you can document how the equipment will be used and estimate its useful life by contacting a manufacturer or vendor or a secondary market source to request how long it will be of value, with that use, in the market place. This has nothing to do with how long it will survive. It must have a practical business “use” value. A meaningful residual does not mean it must be worth 20% but it does mean you should be able to extract additional rent for at least another 20% of time.

Remember you have the burden of proof here and lack of information or documentation is deadly.

To prevent game playing with the numbers (rent plus residual) the IRS has an additional test to determine if the rent and residual equal what a lessee could have purchased the equipment for using a loan containing a balloon payment as a last payment. This means that if you allow the lessee to purchase the equipment for your residual the transaction has the economics of a loan. Therefore fixed price purchase options equal to the residual are not wise.

The question of purchase options only clouds the discussion because any thought of passing title raises the question of why the lessor is selling the company’s assets. In a true lease you should not offer a purchase option unless pressed by the lessee. For years we thought a fair market purchase option would prevent any problems but in many cases the cost to return some equipment exceeded its value at termination forcing the lessee to purchase to save money. This makes it a loan. So today the return language must take into account the equipment’s value vs. the cost of freight based on the information “available at the commencement of the lease. “The legal rules or more precisely the definition of a lease for Article 2A required any purchase option to approximate the future value of the equipment and the IRS has adopted the issue by requiring the lessor to have “proof” of the estimated value in the lease folder or any fixed purchase option will be grounds for an audit. The old 10% purchase option is a red flag and unsubstantiated will be proof a loan was the intention of both parties.

The most misunderstood term in the tax requirements is the fact that it is the “intent” of the parties in a lease that must be determined by all the facts. If you think like a money lender and do not take residuals and offer small fixed price purchase options and fail to look at the equipment’s value, or useful life, I guarantee you are in the lending business and not the leasing business.

One last thought! Be very careful how you characterize your transaction to the lessee. If the lessee is lead to believe the transaction is a true lease, and it is not, we may be held accountable. When we use the term “lease” and have a document that says “lease agreement” and it is not a lease but a loan we are praying on the ignorance of the customer. Small ticket leases are not immune from this issue and in fact receive the most complaints about false comments.

The last thing to remember is that the lessor must not allow the lessee any equity in the equipment which means “no down payments” and no trade-in’s and no equipment cost discounts. The lessor must completely pay the full cost of the equipment. You can take cash as a security deposit but cannot take additional collateral.

One of the problems created in the past that is being talked about today is how the leasing industry puts the burden on the lessee by placing tax indemnification in the lease agreement so if the transaction is rejected by the IRS then the lessee must make up the difference to the lessor. This may be challenged in court on the bases that the lessor is once again praying on the ignorance of the lessee. This indemnification may require you to explain the risk if any of the rules I mentioned here are bent or broken.

Act like a lessor and do your due diligence because it helps the credit decision and maximize your equipment at termination and you will be in the leasing business.

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

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Filing Continuation Statement Does Not Violate
Bankruptcy Automatic Stay
By Tom McCurnin
Leasing News Legal Editor

In re Botson, 531 B.R. 719, 729 (Bankr. N.D. Ohio 2015)

Here’s a little case which holds that the secured creditor can file a continuation statement after discharge, without violating the automatic stay. Personally, I thought this legal principal was well known, but apparently news got out to the lawyers in Ohio a bit late, I guess. The facts follow.

Kymberly A. Botson and Christopher J. Botson entered into a loan and security agreement with Citizens Banking Company in 2009. The loan was secured by accounts receivable, and the Bank filed its UCC-1 financing statement. The borrowers filed bankruptcy in 2011. In 2012, the borrowers received their order of discharge, and had the chutzpa to demand that the Bank remove its UCC–1 filing. The Bank refused.

Any seasoned bankruptcy lawyer should know that a bankruptcy does not per se remove or affect the creditor’s collateral. Something has to be done by the bankrupt debtor to do that, either an adversary proceeding or claims litigation. The borrowers did neither.

In 2014, Defendant filed a UCC–3 continuation statement for its collateral.

The borrowers sued, claiming a violation of the discharge injunction (similar to the automatic stay which prohibits a creditor from going after the debtor’s post-bankruptcy petition) and sought injunctive relief, in the form of a court order to compel the Bank to remove the UCC–1 filing. The borrowers also requested punitive damages in the amount of $10,000.00, along with legal fees. The Bank claimed that the filing a UCC continuation statement in an effort to maintain its perfection of a security interest in collateral is not a violation of the discharge injunction.

The court, in a fairly long opinion held that a secured creditor is secured by the assets which existed at the time of the bankruptcy filing, and no more. If there was no remaining prepetition property subject to that lien, then the continuation statement would be a violation of the automatic stay. The court held that the bank had not demanded any payment from the borrowers, nor attempted to collect upon, or claim a lien upon, any property that the Plaintiffs may have acquired post-petition. Therefore, the filing of the continuation statement was proper. Secured creditor wins, borrower loses.

What are the takeaways here?

• First, Secured Creditors Need to Maintain Collateral Reports. I assume that the Bank had an accounts receivable aging as of the date of the filing of the bankruptcy. This dollar amount would be significant to prove there was collateral subject to the Bank’s lien.

• Second, Be Coy in Demanding Payment Post-Petition. I got the impression from the opinion, that the Bank was really not interested in the collateral, and used the continuation statement as a bargaining chip to extract a settlement from the borrowers. Indeed, the Bank’s letter back to the borrowers was fairly blunt. It might have been wiser to try to collect on those receivables.

The bottom line to this case is that a creditor can always renew its security interest. However, the creditor should proceed carefully to ensure that its actions are not construed as a pretext to collect a discharged obligation from the debtor.

Botson Case
http://www.leasingnews.org/PDF/BotsonCase2016.pdf

Tom McCurnin is a partner at Barton, Klugman & Oetting in Los Angeles, California.

Tom McCurnin
Barton, Klugman & Oetting
350 South Grand Ave.
Suite 2200
Los Angeles, CA 90071
Direct Phone: (213) 617-6129
Cell (213) 268-8291
Email: tmccurnin@bkolaw.com
Visit our web site at www.bkolaw.com
Previous Tom McCurnin Articles:
http://www.leasingnews.org

Previous Tom McCurnin Articles:
http://www.leasingnews.org/Conscious-Top%20Stories/leasing_cases.html

News Briefs---

New Crowdfunding Rules
Let the Small Fry Swim With Sharks
http://www.nytimes.com/2016/05/15/business/dealbook/new-crowdfunding-rules-let-the-small-fry-swim-with-sharks.html?ref=business&_r=0

Lending Club, a Story Stock That Skimped on the Details
http://www.nytimes.com/2016/05/15/business/lending-club-a-story-stock-that-skimped-on-the-details.html?ref=business

Healthcare Suffers Est. $6.2 Billion In Data Breaches
Nearly 90 percent of healthcare organizations
http://www.darkreading.com/threat-intelligence/healthcare-suffers-estimated-$62-billion-in-data-breaches/d/d-id/1325482

Sales Representative
San Francisco

2 to 3 Years in Financial Services

For Further Information, click here

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--You May Have Missed It

49 most important tools you need in your life
http://www.sfgate.com/life/slideshow/The-50-most-important-tools-you-need-in-your-life-129009.php

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SparkPeople--Live Healthier and Longer

9 Surprising Foods with More Sugar than a Krispy Kreme
http://www.sparkpeople.com/blog/blog.asp?
post=9_surprising_foods_with_more_sugar_than_a_krispy_kreme

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Baseball Poem

Stubs
What is it
About ticket stubs
That prevents me
From throwing them away
Not just the precious few
From a World Series
But lately
I can't throw any away
They do not bring to mind
Vivid memories
Of good times
Or remembrances
Of hits and runs past
Yet they stand for something For times I traveled
Outside of time
Like stamped passports
They are all the proof remaining
Of my trips

Written by Gene Carney, published in
“Romancing the Horsehide: Baseball Poems
on Players the Game”

Published by McFarland and Company

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Sports Briefs----

Jarryd Hayne retires from 49ers to pursue rugby gold in Rio Olympics
http://www.usatoday.com/story/sports/nfl/49ers/2016/05/15/jarryd-hayne-retirement-fiji-rugby-olympics-australia/84414996/

Chip Kelly quells Kaepernick controversy, keeps QB job TBD
http://www.theredzone.org/BlogDescription/tabid/61/EntryId/56494/Chip-Kelly-quells-Kaepernick-controversy--keeps-QB-job-TBD/Default.aspx

Warriors vs. Thunder: Breathtaking possibilities with Finals berth at stake
http://www.pressdemocrat.com/sports/5618042-181/warriors-vs-thunder-breathtaking-possibilities?artslide=0

Inside Jon Gruden's 'Maniacal' Obsession with Football
http://bleacherreport.com/articles/2636358-inside-jon-grudens-maniacal-obsession-with-football

Santa Clara mayor: City is spending tax dollars on Levi's Stadium events
http://www.mercurynews.com/bay-area-news/ci_29893187/santa-clara-mayor-city-is-spending-tax-dollars

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California Nuts Briefs---

The hidden workforce expanding Tesla's Fremont factory
http://www.mercurynews.com/business/ci_29892463/hidden-workforce-expanding-teslas-fremont-factory

Thousands pack SF streets for Bay to Breakers
http://www.ktvu.com/news/141635375-story

Photo's Bay to Breakers
http://www.sfgate.com/bayarea/article/They-re-here-Clowns-monsters-zombies-at-Bay-7469687.php

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“Gimme that Wine”

http://www.youtube.com/watch?v=EJnQoi8DSE8

Do You Need Wine-Lister, a New 1000-Point Wine Rating System?
http://www.bloomberg.com/news/articles/2016-05-13/do-you-need-wine-lister-a-new-1000-point-wine-rating-system

Tasting Room Survey Discloses Disparities
http://www.winesandvines.com/template.cfm?section=news
&content=168737

Toss the Cork: New Tech Keeps Wine Fresh for 30 Days
http://www.foxbusiness.com/features/2016/05/10/toss-cork-new-tech-keeps-wine-fresh-for-30-days.html

Mondavi sisters make their mark in wine
http://napavalleyregister.com/wine/mondavi-sisters-make-their-mark-in-wine/article_201cc637-992e-53bb-81e1-6fd9fcb7b5f0.html

Lake County wine industry is ready for takeoff
http://www.pressdemocrat.com/business/5595850-181/lake-county-wine-industry-is?artslide=0

Free Mobile Wine Program
http://leasingnews.org/archives/Feb2010/2_26.htm#mobile

Wine Prices by vintage
http://www.winezap.com
http://www.wine-searcher.com/

US/International Wine Events
http://www.localwineevents.com/

Leasing News Wine & Spirits Page
http://two.leasingnews.org/Recommendations/wnensprts.htm

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      1775-The first constitution adopted by a state was that of Massachusetts by the Provincial congress of Massachusetts. The motto of the state was Ense Petit placidam sub libertate quietem (“with the sword she seeks peace under liberty.”) The constitution was temporary. A new one was framed in Boston on September 1, 1779, and was completed on March 2, 1780, and ratified by a two thirds vote. John Hancock served as the first governor under the permanent constitution.
    1777- Button Gwinnett, signer of the Declaration of Independence and Georgia patriot, died following a duel at St. Catherine’s Island, off of Savannah, GA. Gwinnett wanted to lead an expedition to secure Georgia’s border with Florida, but a dispute arose with a rival, Lachlan McIntosh, resulting in the fatal duel. http://www.colonialhall.com/gwinnett/gwinnett.asp
    1801 – Birthday of William H. Seward, Secretary of State under President Lincoln. Seward insisted on the purchase of the Alaskan territory from Russia, and was successful at approximately 2 cents per acre. Seward died on October 10, 1872.
    1804-Birthday of Elizabeth Palmer Peabody, born at Billerica, MA. Peabody opened a bookstore that quickly became the intellectuals’ hangout. With her own printing press, Peabody became the first woman publisher of Boston and possibly the US. She published three of her brother-in-law Nathaniel Hawthorne’s books. For two years, she published and wrote for The Dial, the literary magazine and voice of the Transcendental movement. Peabody’s enduring accomplishment was the establishment of the first kindergarten in the US, in 1860, at Boston. She created a magazine, Kindergarten Messenger, in 1873. Died January 3, 1894, at Jamaica Plain, MA.
http://memory.loc.gov/ammem/today/may16.html
    1832 – Birthday of Philip Armour, American entrepreneur who later formed The Armour Company meatpacking enterprises.
    1836 -- Edgar Allan Poe marries Virginia Clemm, his 13-year-old tubercular cousin. (Possibly secretly married previously, on September 22, 1835.)
http://bau2.uibk.ac.at/sg/poe/poe.html
    1862-General Benjamin Butler, military governor of New Orleans, issued what became known as the “Woman Order.” The text of General Order Number 28 read, in part, ‘As the officers and soldiers of the United States have been subjected to repeated insults from women (calling themselves ladies) of New Orleans. When any female shall . . . show contempt for the United States, she shall be regarded as a woman of the town plying her avocation.” This order typified Butler’s attitude toward the captured city and its populace and, along with other controversial acts, set the stage for his dismissal as military governor in December of 1862. It was not uncommon for a stupid, rude person to be called a Benjamin Butler in New Orleans. He was also known as “Spoons,” for reportedly stealing silver from estates in the area. He was also known as “Beast.” Jefferson Davis branded him an “outlaw” and put a bounty on his head. He then botched up his next assignment and resigned to run for Congress and was elected five times, serving once as Governor of Massachusetts.
http://7-12educators.about.com/blcwphmilfed18.htm.
http://www.swcivilwar.com/butler.html
        1863- After a standoff of nearly a year around the strategic Mississippi River city of Vicksburg, MS, Union forces under Ulysses S. Grant defeated Southern forces under General John Pemberton at Champion’s Hill, MS. Pemberton’s forces withdrew into Vicksburg, and the siege of Vicksburg began. Gettysburg was only a few months away.http://www2.cr.nps.gov/abpp/battles/ms009.htm
http://classicals.com/federalist/TheCivilWarhall/messages/32.html
    1866-Issuance of the nickel, a new five-cent coin, was authorized by Congress. It was minted of copper and nickel with not more than 25% nickel.
    1868- The U.S. Senate failed by just one vote to convict President Andrew Johnson of "high crimes and misdemeanors," as he was charged under the articles of impeachment. A second vote, taken on May 26, also fell short, by just one vote, of the two-thirds majority required to convict the president. (lower half of http://memory.loc.gov/ammem/today/may16.html)
    1874 -The Mill Creek Disaster occurred west of Northampton, Massachusetts when dam slippage after rain caused a flash flood with the loss of 143 lives. Total damage was about one million.
    1882 – Birthday of Anne O’Hare McCormick, the American journalist who became the first woman on the editorial board of The New York Times. Died May 29, 1954.
    1888-Emile Berliner of Washington, DC., first publicly demonstrated before the Franklin Institute in Philadelphia, PA, the first modern disk he called a “phonograph.” Berliner’s “Gramophone” record was a flat disk in which the grooves were cut in a lateral spiral, making it much easier to duplicate for the mass market than Edison’s recording cylinder.
    1891- George A Hormel & Company introduce Spam.
    1893-Herman L. Wagner of Brooklyn, NY obtained a patent on a typewriter, which produced a line of writing visible as it was being typed. This machine went through an experimental period with the Wagner Typewriter Company and then was sold to John T. Underwood, who had been associated with Wagner’s father in the ribbon and carbon business of John Underwood and Company. The Underwood Typewriter Company, incorporated in March 1895, undertook the manufacture of Wagner’s machine in New York City.
    1905 – Birthday of Henry Fonda, American stage and film actor, father to Jane and Peter.
    1912 – Birthday of Studs Terkel, author, historian, broadcaster, and Pulitzer Prize winner, in New York City.
    1913—Birthday of Woody Herman, Milwaukee, WI.
He had joined Isham Jones' band in 1934 and took over that orchestra two years later when Jones retired because of ill health. The band became the first Woody Herman Herd, and was known as "The Band That Plays the Blues." The band's fortunes began to grow following the release of their recording of "Woodchopper's Ball" in 1939. By the following year, the Woody Herman band was beginning to score in the popularity polls. Herman changed the direction of his band in the mid-1940's. Its music became louder and more and more dependent on a screaming brass section. The change found favor with the public - the Herman Herd was number one in polls conducted by national music magazines. Woody Herman continued to lead a big band long after the swing era ended. In the 1960's, the band moved in a jazz-rock direction, but in the following decade moved to a more pure jazz style. Herman died in Los Angeles of congestive heart failure on October 29th, 1987.
http://www.woodyherman.com/
http://www.nyjam.com/content/artists/herman.html
http://www-music.duke.edu/jazz_archive/artists/herman.woody/01/
    1914-The Grand League of the American Horseshoe Pitchers Association was formed. The league set its first championship for October 23, 1915, at Kellerton, IA.
    1918 – US Congress passed The Sedition Act to protect US participation in World War I. The Act was aimed at socialists, pacifists, and anti-war activists.
    1919-Pianist Liberace, whose full name was Wladziu (VLA'-JAH) Valentino Liberace, was born in West Allis, Wisconsin. His overly sentimental pop tunes and frilly, condensed versions of the classics built him into one of the hottest show business personalities in the 1950's. Liberace's trademarks included candelabra on the piano and outlandish costumes that weren't matched until some of the rock groups of the '70s came along. His audience consisted mainly of middle-aged women, some of whom behaved much as rock groupies did a decade later. Liberace died on February 4th, 1987 from conditions related to AIDS.
http://www.liberace.com/liberace/bio.cfm
    1924 - The temperature at Blitzen, Oregon soared to 108 degrees to establish a state record for the month of May. The record was later tied at Pelton Dam on May 31, 1986.
    1928- Birthday of Alfred Manuel “Billy” Martin, baseball player and manager, at Berkeley, CA. Billy Martin’s baseball career included managerial stints with five major league teams, the New York Yankees, Minnesota Twins, Detroit Tigers, Texas Rangers and the Oakland Athletics. After a successful playing career, he compiled a record of 1,258 victories to 1,018 losses in his 16 seasons as manager. His combative style both on and off the field kept him in the headlines, and he will long be remembered for his on-again/off-again relationship with Yankees’ owner George Steinbrenner, for whom he managed the Yankees five different times. Martin died in an auto accident near Fenton, NY, Dec 25, 1989.
    1929- About 270 people attended a dinner at the Blossom Room in the Hollywood Roosevelt Hotel in Los Angeles, at which the first Academy Awards were given in 12 categories. This was the brainchild of mogul Louis B. Mayer. It was hosted by Douglas Fairbanks, Sr. and Cecil B. De Mille. The silent film “Wings” won Best Picture. (The statuette we know so well as Oscar was not included in this first presentation for films made in 1927-1928. Oscar didn’t make an appearance until 1931. The popular, unconfirmed story relates that the source of the name was Academy Director Margaret Herrick who thought it looked like her Uncle Oscar.) Janet Gaynor was named Best Actress for her performance in "Seventh Heaven", which also won the Best Director/Dramatic Picture for Frank Borzage, and the Best Writing/Adaptation for Benjamin Glazer. Lewis Milestone was named Best Director/Comedy Picture for "Two Arabian Knights". Emil Jannings received two Best Actor awards, one for the 1927,"The Way of All Flesh", the other for "The Last Command" (1928). A second Best Film award was presented to "Sunrise" for Unique and Artistic Production. It also won for Best Cinematography (Charles Rosher and Karl Struss). A committee of only 20 members selected the winners that year. The first included 1927-28 awards plus some 1928 again and 1929, which also was splint into 1930. By the third year, the entire membership of the Academy voted. The Academy Awards were first televised in 1953.
http://www.infoplease.com/ipa/A0147914.html
http://www.infoplease.com/ipa/A0147930.html
    1929 - Birthday of singer Betty Carter (Lillie Mae Jones), Flint, MI Died Sept. 26, 1998.
http://home.att.net/~timcramm/betty.htm
http://www.jazzsingers.com/BettyCarter/ http://home.att.net/~timcramm/biograph.htm
http://www.jazzsingers.com/BettyCarter/
http://elvispelvis.com/bettycarter.htm#bio
http://park.org/Sponsors/NBC/carter.html
http://www.kennedy-center.org/programs/jazz/jazzahead/
    1937-Dizzy Gillespie records first solo with Teddy Hill’s band on King Porter Stomp, NYC ( Bluebird B-69888) http://www.duke.edu/~fdp/bio.html
http://www.bowdoin.edu/~aboisver/jazz/dizzy.html
http://www.geocities.com/BourbonStreet/Square/9063/index/gillespie.html
    1943- A major turning point of World War II occurred when the Royal Air Force Lancasters began bombing three dams in Germany’s Ruhr Valley. This lasted two days and was the start of the strategic bombing effort to end the war. They dropped 4.5 ton bombs designed specifically for this mission. The Mohne and the Eder (the largest dams in Europe at the time) were both damaged. These two dams provided drinking water for four million people and supplied 75 percent of the electrical power for industry. Widespread flooding and many deaths resulted. The planned raid also greatly affect military production. It began the assault on Germany, whose population until this time was not affected as France, England, Russia and other countries were experiencing from the Nazi's
    1945--MULLER, JOSEPH E. Medal of Honor
Rank and organization: Sergeant, U.S. Army, Company B, 305th Infantry, 77th Infantry Division. Place and date: Near Ishimmi, Okinawa, Ryukyu Islands, 15-16 May 1945. Entered service at: New York, N.Y. Birth: Holyoke, Mass. G.O. No.: 71, 17 July 1946. Citation: He displayed conspicuous gallantry and intrepidity above and beyond the call of duty. When his platoon was stopped by deadly fire from a strongly defended ridge, he directed men to points where they could cover his attack. Then through the vicious machinegun and automatic fire, crawling forward alone, he suddenly jumped up, hurled his grenades, charged the enemy, and drove them into the open where his squad shot them down. Seeing enemy survivors about to man a machinegun, He fired his rifle at point-blank range, hurled himself upon them, and killed the remaining 4. Before dawn the next day, the enemy counterattacked fiercely to retake the position. Sgt. Muller crawled forward through the flying bullets and explosives, then leaping to his feet, hurling grenades and firing his rifle, he charged the Japs and routed them. As he moved into his foxhole shared with 2 other men, a lone enemy, who had been feigning death, threw a grenade. Quickly seeing the danger to his companions, Sgt. Muller threw himself over it and smothered the blast with his body. Heroically sacrificing his life to save his comrades, he upheld the highest traditions of the military service.
    1945--BALLARD, DONALD E. Medal of Honor
Rank and organization: Hospital Corpsman Second Class, U.S. Navy, Company M, 3d Battalion, 4th Marines, 3d Marine Division. Place and date: Quang Tri Province, Republic of Vietnam, 16 May 1968. Entered service at: Kansas City, Mo. Born: 5 December 1945, Kansas City, Mo. Citation: For conspicuous gallantry and intrepidity at the risk of his life and beyond the call of duty while serving as a HC2c. with Company M, in connection with operations against enemy aggressor forces. During the afternoon hours, Company M was moving to join the remainder of the 3d Battalion in Quang Tri Province. After treating and evacuating 2 heat casualties, HC2c. Ballard was returning to his platoon from the evacuation landing zone when the company was ambushed by a North Vietnamese Army unit employing automatic weapons and mortars, and sustained numerous casualties. Observing a wounded marine, HC2c. Ballard unhesitatingly moved across the fire swept terrain to the injured man and swiftly rendered medical assistance to his comrade. HC2c. Ballard then directed 4 marines to carry the casualty to a position of relative safety. As the 4 men prepared to move the wounded marine, an enemy soldier suddenly left his concealed position and, after hurling a hand grenade which landed near the casualty, commenced firing upon the small group of men. Instantly shouting a warning to the marines, HC2c. Ballard fearlessly threw himself upon the lethal explosive device to protect his comrades from the deadly blast. When the grenade failed to detonate, he calmly arose from his dangerous position and resolutely continued his determined efforts in treating other marine casualties. HC2c. Ballard's heroic actions and selfless concern for the welfare of his companions served to inspire all who observed him and prevented possible injury or death to his fellow marines. His courage, daring initiative, and unwavering devotion to duty in the face of extreme personal danger, sustain and enhance the finest traditions of the U.S. Naval Service.
    1946 - The Irving Berlin musical, "Annie Get Your Gun", opened at New York’s Imperial Theatre. Once of the most successful shows presented on a Broadway stage, the show ran for 1,147 performances.
    1947- Barbara Lee of the Chiffons was born in New York City. The group had several hits in the early 1960's, including "He's So Fine," which went to number one in 1963.
http://www.history-of-rock.com/chiffons.htm
    1952—Top Hits
Blue Tango - The Leroy Anderson Orchestra
Kiss of Fire - Georgia Gibbs
Blacksmith Blues - Ella Mae Morse
The Wild Side of Life - Hank Thompson
    1953 - Bill Haley and His Comets made it to the "Billboard" music charts for the first time with "Crazy Man Crazy". The tune went to number six and became the first rock ’n’ roll record to make the pop music chart.
    1955 – Birthday of pitcher Jack Morris of the Detroit Tigers and Minnesota Twins. In the 1991 World Series, in arguably one the Series’ greatest pitching performances, Morris threw 10 shutout innings against the Atlanta Braves. The Twins took game 7, 1-0, to win the Series.
    1959-Sam Snead shot an 11-under-par round of 59 at The Greenbrier in White Sulphur Springs, WV. He became the first golfer to break 60 for 18 holes in a major tournament (31 out, 28 coming home), 11 strokes under par, in the third round of the Sam Snead Festival Golf Tournament. He had a score of 196 for 54 holes and won $4,500. The tournament was originally named the Greenbrier Open.
http://www.themasters.cc/samsnead.htm
http://www.golfeurope.com/almanac/players/snead.htm
    1959 - No. 1 Billboard Pop Hit: "Kansas City," Wilbert Harrison. The song debuts at No. 100 on the Hot 100.
    1960—Top Hits
Stuck on You - Elvis Presley
Cathy’s Clown - The Everly Brothers
Night - Jackie Wilson
Please Help Me, I’m Falling - Hank Lockin
    1960-Billboard reports Berry Gordy Jr, a songwriter and publisher in Detroit, is working on his own record label after successfully producing a bunch of hit records.
    1963-- At this year's Grammy Awards ceremonies in Los Angeles, Tony Bennett's "I Left My Heart in San Francisco" wins Record of the Year and Best Male Vocal, while Ray Charles' "I Can't Stop Loving You" is awarded Best R&B Recording. For some reason, Best Rock and Roll Record go to the Bent Fabric instrumental "Alley Cat."
    1964---21 year old Mary Wells led the Billboard Pop chart with the Smokey Robinson-written "My Guy". The record was Wells' 9th Top 40 entry and would prove to be her highest charting US single. This was the first #1 hit for Gordy’s Motown Records. Three days before the song reached #1, Wells opted out of her contract to sign with 20th Century Fox Records, never to reach the top 10 again. Wells died from throat cancer July 26, 1992.
    1965 - "The Roar of the Greasepaint, The Smell of the Crowd", a Broadway musical starring Anthony Newley, made its premiere at the Shubert Theatre in New York City. Cyril Ritchard appeared in the production which entertained audiences for 231 performances.
http://www.rockhall.com/hof/inductee.asp?id=116
http://www.rhull.freeserve.co.uk/
    1965-The Rolling Stones appear with Chuck Berry on the television show "Hollywood A-GO-GO." The Stones, trying to drive off in a Limo after the show, are attacked by a mob of fans.
    1965-The Beach Boys appear on the "The Ed Sullivan Show" performing their latest hit, "Help Me Rhonda."
    1966--Frank Sinatra records "Summer Winds"
    1966- The Beach Boys album "Pet Sounds" was released. Although it only barely made the top 10, the album has since become regarded as a classic and The Beach Boys' best. "Pet Sounds" also gained new fans through its 1990 re-release on CD.
http://www.epinions.com/musc_mu-81264
    1966- Janet Jackson is born in Gary, Ind., the youngest of the Jackson family. She is married briefly in 1984 to James DeBarge of DeBarge. She signs a $32 million contract with Virgin Records in 1991.
http://www.janet-jackson.com/
http://missjanet.xs4all.nl/
http://www.askmen.com/women/singer/14_janet_jackson.html
    1968—Top Hits
Honey - Bobby Goldsboro
Tighten Up - Archie Bell & The Drells
The Good, the Bad and the Ugly - Hugo Montenegro
Have a Little Faith - David Houston
    1968---ROARK, ANUND C. Medal of Honor
Rank and organization: Sergeant, U.S. Army, Company C, 1st Battalion, 12th Infantry, 4th Infantry Division. Place and date: Kontum Province, Republic of Vietnam, 16 May 1968. Entered service at: Los Angeles, Calif. Born: 17 February 1948, Vallejo, Calif. Citation: For conspicuous gallantry and intrepidity in action at the risk of his life above and beyond the call of duty. Sgt. Roark distinguished himself by extraordinary gallantry while serving with Company C. Sgt. Roark was the point squad leader of a small force which had the mission of rescuing 11 men in a hilltop observation post under heavy attack by a company-size force, approximately 1,000 meters from the battalion perimeter. As lead elements of the relief force reached the besieged observation post, intense automatic weapons fire from enemy occupied bunkers halted their movement. Without hesitation, Sgt. Roark maneuvered his squad, repeatedly exposing himself to withering enemy fire to hurl grenades and direct the fire of his squad to gain fire superiority and cover the withdrawal of the outpost and evacuation of its casualties. Frustrated in their effort to overrun the position, the enemy swept the hilltop with small arms and volleys of grenades. Seeing a grenade land in the midst of his men, Sgt. Roark, with complete disregard for his safety, hurled himself upon the grenade, absorbing its blast with his body. Sgt. Roark's magnificent leadership and dauntless courage saved the lives of many of his comrades and were the inspiration for the successful relief of the outpost. His actions which culminated in the supreme sacrifice of his life were in keeping with the highest traditions of the military service, and reflect great credit on himself and the U.S. Army.
    1968 – An accidental explosion of a bomb on one aircraft which spread to others at Bien Hoa Air Base in VietNam kills 27 US airmen, 4 South Vietnamese, injured 95 Americans and destroyed 40 planes.
    1970-- Crosby, Stills, Nash and Young's LP Déjà Vu hits #1
    1971 - An ounce of first-class mail rocketed to eight cents for delivery -- two cents more than the previous stamp
    1972-Goal posts offset from the goal line, pained bright yellow, and with uprights 20 feet above the crossbar were made standard in the NFL.
    1976—Top Hits
Boogie Fever - Sylvers
Silly Love Songs - Wings
Fooled Around and Fell in Love - Elvin Bishop
What Goes on When the Sun Goes Down - Ronnie Milsap
    1980- Dr. George C. Nichopoulous, known to his patients as Dr. Nick, was indicted in Memphis on 14 counts of illegally prescribing drugs to Elvis Presley, Jerry Lee Lewis and others.
    1981 - "Bette Davis Eyes", by Kim Carnes, climbed to the top spot of the pop music chart and stayed there for five straight weeks, took a week off (replaced by "Stars on 45 Medley" by Stars on 45) and came back to number one for four more weeks! It was, obviously, a gold record winner and was played over and over and over for 20 weeks before becoming an instant oldie but goodie. "Bette Davis Eyes", incidentally, was written in part by Jackie DeShannon, who had two top ten hits in the 1960s: "What the World Needs Now is Love" in 1965 and the million-seller, "Put a Little Love in Your Heart", in 1969.
    1985 - Michael ‘Air’ Jordan was named Rookie of the Year in the National Basketball Association. Jordan of the Chicago Bulls was the number three draft choice. At the time, he was third in league scoring with a 28.2 average and fourth in steals with 2.39 per game.
    1984—Top Hits
Hello - Lionel Richie
Hold Me Now - The Thompson Twins
Let’s Hear It for the Boy - Deniece Williams
To All the Girls I’ve Loved Before - Julio Iglesias & Willie Nelson
    1986—The move "Top Gun", with Tom Cruise, Kelly McGillis, Val Kilmer, Tom Skerritt, and Anthony Edwards, premieres.
    1990 - Thunderstorms produced severe weather from eastern Oklahoma and northeastern Texas to the Upper Ohio Valley. Thunderstorms spawned seventeen tornadoes, including a twister which killed one person and injured another north of Corning, AR. There were 128 reports of large hail or damaging winds. Strong thunderstorm winds killed one person and injured six others at Folsomville, IN, and injured another five persons in southeastern Hardin County KY. In Arkansas, baseball size hail was reported near Fouke and near El Dorado.
    1993—Top Hits
That's The Way Love Goes- Janet Jackson
Freak Me- Silk
Love Is (From "Beverly Hills, 90210")- Vanessa Williams/Brian McKnight
Informer-Snow
    1999-Mia Hamm, the most recognized female soccer player in the world, broke the all-time international scoring record, for men and women against Brazil in Orlando, Fla. with her 108th career goal.
http://soccernet.espn.go.com/wwc/feature?id=276126
    2002-Top Hits
Foolish- Ashanti
What's Luv?- Fat Joe Featuring Ashanti
I Need A Girl (Part One)- P. Diddy Featuring Usher & Loon
U Don't Have To Call- Usher
    2006-- After drawing a warning from home plate umpire Joe West for throwing a ball behind Barry Bonds, Astros hurler Russ Springer strikes the Giants slugger on the shoulder with the fifth pitch of the at-bat. This incident will cost the 37-year old right-handed reliever 4 games as he will be suspended by MLB for his action against the San Francisco superstar, who then needed just one home run to equal Babe Ruth's career home run mark

NBA Finals Champions This Date

1980 Los Angeles Lakers

Stanley Cup Champions This Date

1976 Montreal Canadiens
1982 New York Islanders

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