Classified Ads---Asset Management

Haverhill, MA Started in credit and collections 30 years ago with a private agency. My skills are negotiating with Attorney's, Insurance Companies & Large & small companies. cityofpa@earthlink.net | Resume

Minneapolis, MN 16 years leasing experience from micro to large ticket market, variety of equipment. Most recently calling on vendor telecom dealers in Upper Midwest. golfadm@yahoo.com

Santa Barbara, Ca. Full time/part time/Former Balboa/LEAF/Santa Barbara B&T, repossession, remarketing, liquidation.Top references; willing to relocate for excellent career opportunity. Resume

For a full listing of all "job wanted" ads, please go to:
http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm

Other e-Mail Posting Sites:
http://www.leasingnews.org/Classified/Posting_sites.htm

New Development in EAR Law Suits

Joining the various lawsuits against Equipment Acquisition Resource (EAR) and its officers is Bank of Dixon County, 117 E. Third Street, Ponca, Nebraska. While the complaint is only a loss of $321,596* compared to Red Oak, $2 million, Leasing One Corporation, $2 million, Home Federal Savings Bank $3.2 million, Fifth Third Bank $10 million, and ICON Capital $21,599,653 million law suit, it is very revealing.

First, it shows Mark W. Anstett as president and owning 10% of EAR, stating on a financial statement his shares were worth $15,932,981 and Donna Malone as corporate secretary owning 90% with share worth $180 million (no one caught the valuation difference, nor does it match Don Blody's tax return report as the value of the corporation.) Sheldon Player is not named in the suit.

What makes this a "new development" is that it is the first to show what sent Player to jail in the $79 million Greyhound Leasing case. Bank of Dixon bought a lease from Leasing Innovations, Inc. 261 N. Coast Highway 101, Solana Beach, California dated April 22, 2009.

The lessee is Equipment Acquisitions Resources, Palatine, Illinois with Anstett and Malone as guarantors. The equipment: a Refurbished Okamoto Model GNX 200 Precision Backgrinder s/n GNX 200-009-HT costing $297,000. The lessor is also listed as the seller of the equipment on an Illinois Department of Revenue ST-587 Equipment Exemption Certificate. There also is a landlord waiver signed by Donna Malone "as Gerald Vermont Street LLC."

The list of leasing companies and banks in the bankruptcy perhaps names many others in a similar situation. In this Bank of Dixon County case James Chatz of Arnstein & Lehr, Chicago, Illinois representing the "equipment creditors "wrote the funder of the lease Bank of Dixon a "For Settlement Purpose Only" a letter to liquidate the collateral.

While the Leasing Innovations web site (www.leasing123.com)states it has been "suspended," Better Business Bureau reports the business started 11/1/1992 with Heather G. Fritz as President. Rating is an A+ with no complaints (and they also are members of BBB.)

Leasing Innovations was listed as one of the creditors in the Wildwood Industries, Bloomington, Illinois bankruptcy filling.
http://www.leasingnews.org/archives/March%202009/03-20-09.htm#over

March 5, 2002, Leasing Innovations Incorporated was recognized as a San Diego 2001 Better Business Bureau Torch Awards for Marketplace Ethics Finalist in the five to ten employees category. The press release states, "Leasing Innovations Incorporated (LII) was founded in 1992 and provides equipment financing services throughout the US, with offices in San Diego and Boston. LII finances in excess of $50 million worth of equipment annually. The firm serves large and small corporations, as well as having a special expertise in not-for-profit, municipal, federal and Indian tribal leasing transactions."
http://two.leasingnews.org/archives/March2002/03-05-02.htm

*It should be pointed out that the $$321,596 to Bank of Dixon County, Ponca, Nebraska, is considerable as the FDIC reports the bank was formed January 1, 1881 with three branches (Ponca: 1/1/1881, New Castle, 1922, Jackson, 2002) 18 full time employees with a total equity capital of $6.65 million as of June 30, 2009 with a $144,000 net income.

BBB Web site Leasing Innovation:
http://www.bbb.org/san-diego/business-reviews/financial-services/leasing-innovations-incorporated-in-solana-beach-ca-19005998/

Copy of Bank filing including Arnstein & Letter:
http://leasingnews.org/PDF/Bank_of_Dixon.pdf

Past EAR stories:
http://www.leasingnews.org/Conscious-Top%20Stories/Sheldon_Player.htm

Coston appointed in IFC Credit Bankruptcy

James E. Coston and Coston & Rademacher were appointed and authorized as "Legal and Leasing Consultants and as Special Counsel" to IFC Credit Corporation Chapter 7 Trustee David P. Leibowitz. A retainer amount of $40,000 was authorized by Hon. Jacqueline P. Cox, United States Bankruptcy Judge in the IFC Credit Corporation, Morton Grove, Illinois Chapter 7 Bankruptcy.

In 2003-04, Coston was the first attorney to become a United Association of Equipment Leasing (now National Equipment Finance Association) President. He also is an active member of the Equipment Leasing Association of America (ELA), now known as the Equipment Leasing & Finance Association (ELFA), and has served for three years on its Legal Committee.

"Parallel to his work as a leasing attorney, Mr. Coston is a nationally recognized advocate for, and developer of, improved railroad passenger service in the United States. In 2000 Senate Majority Leader Thomas Daschle appointed him to the Amtrak Reform Council, where he served until the Council's statutory expiration in 2003. In 2004, Mr. Coston founded Corridor Capital LLC to provide lease-financing options to passenger-rail operating agencies seeking to acquire rolling stock fleets and maintenance facilities. A native of Chicago, Mr. Coston resides on the city's North Side with his wife, Patricia E. Rademacher, and three sons, Jay, Alex and William."
http://www.costonlaw.com/aboutus.html

Various hearing and representatives are active registering in the IFC Credit Corporation bankruptcy case.

Coston Appointment in Chapter 7 IFC BK:
http://leasingnews.org/PDF/Coston_appointed.pdf

IFC Credit articles:
http://www.leasingnews.org/Conscious-Top%20Stories/IFC_stories.htm

Bank Beat--- Five Failures Last Week/One Chinese/Two Black

United Commercial Bank, San Francisco, California became the 120th bank this year to fail. To protect the depositors, the FDIC entered into a purchase and assumption agreement with East West Bank, Pasadena, California, to assume all of the deposits of United Commercial Bank. This agreement included all U.S. branches of United Commercial Bank, the Hong Kong branch of United Commercial Bank, and the subsidiary of United Commercial Bank headquartered in Shanghai, China, United Commercial Bank (UCB-China).

The bank had 1502 employees, opening March 27, 1986, with branches not only in the San Francisco Bay area (23) but Los Angeles, Sacramento, New York, Texas, and the state of Washington. The bank reportedly catered primarily to Chinese customers and businesses.

United Commercial Bank was an overseas Chinese bank in the United States, based in San Francisco, CA. It was a subsidiary of UCBH Holdings. Founded in 1974 as United Federal Savings and Loan Association, it changed its name to United Savings Bank, and finally United Commercial Bank in 1998.

The 63 U.S. branches of United Commercial Bank will reopen during their normal business hours beginning tomorrow as branches of East West Bank. All locations in Hong Kong and China will reopen on Monday, according to normal business hours. In addition, UCB-China, the Shanghai, China, subsidiary of United Commercial Bank, which was also part of today's transaction, will continue its regular banking operations without interruption with the full support of its parent company, East West Bank, whose qualification has already passed the preliminary review by the China Banking Regulatory Commission.

According to Wikipedia, "East West Bank is a Chinese American bank in California. It has 71 branch locations in northern and southern California, Houston, an oversea branch in Hong Kong, a representative office in Beijing and a representative office in Shanghai. East West Bank is headquartered in Pasadena, California. It is the second largest bank headquartered in Los Angeles, after City National Bank."

As of October 23, 2009, United Commercial Bank had total assets of $11.2 billion and total deposits of approximately $7.5 billion. As of June 30, 2009, Tier 1 risk-based capital ratio 5.32%; equity had not changed much, going from $1.37 billion million the previous year time period to $1.19 billion, but profit had dropped from $17 million to a lost of $371 million, with non-current loans going from $286 million to $839 million.

The losses reportedly came from commercial real estate. An internal investigation by the band found that executives had not reported the severity of the loan problems, in fact, misleading auditors, it was claimed.

A subcommittee of the UCBH Holdings' board of directors identified problems they reported resulted both from weaknesses in the bank's internal controls and from deliberate and improper actions and omissions of certain unidentified bank officers. The report concluded that those problems were driven by an apparent desire to downplay deteriorating financial conditions by delaying or abating risk rating downgrades and minimizing the bank's overall loan loss allowance.

The report raised serious concerns regarding the actions of a number of current and former officers at various levels of the bank's management.

East West Bank paid the FDIC a premium of 1.1 percent for the right to assume all of the deposits of United Commercial Bank. In addition to assuming all of the deposits of the failed bank, East West Bank agreed to purchase approximately $10.2 billion in assets of the failed bank.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.4 billion.
http://www.fdic.gov/news/news/press/2009/pr09201.html

Home Federal Savings Bank, Detroit, Michigan, a black owned local bank was closed by the FDIC who arranged with Liberty Bank and Trust Company, New Orleans, Louisiana, to assume all of the deposits of Home Federal Savings Bank.

"Liberty Bank was founded in 1972 with assets of $2 million. Alden J. McDonald, Jr. has led the bank since its inception and has grown Liberty to its current holdings of $374 million, which positions Liberty as the third-largest African American-owned financial institution in the United States."
http://www.louisianaweekly.com/news.php?viewStory=923

Home Federal Savings Bank started November 1, 1947 and had two branches and eight employees. The thrift became the first black-owned banking institution in Detroit, providing mortgages to those often cut off from credit at other area banks. For decades, local black home buyers got their mortgages through Home Federal. As the entire area has been hard hit, the bank also suffered along with it. Equity had gone from $716,000 in June 30, 2008 to $236,000 in June 30, 2009 with a Tier 1 risk-based capital ratio 3.31%. The bank had a $300,000 loss June 30, 2008 and a $221,000 loss June 30, 2009.

As of September 24, 2009, Home Federal Savings Bank had total assets of $14.9 million and total deposits of approximately $12.8 million

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.4 million.
http://www.fdic.gov/news/news/press/2009/pr09198.html

Gateway Bank of St. Louis, St. Louis, Missouri, long the only black-owned bank in St. Louis, had a troubled financial history and was on the FDIC's list of problem banks since 2006. It was closed by the FDIC on Friday with Central Bank of Kansas City, to assume all of the deposits of Gateway Bank of St. Louis. The bank started in June 18, 1965 and had one office in 2009 with 17 employees.

As of September 25, 2009, Gateway Bank of St. Louis had total assets of $27.7 million and total deposits of approximately $27.9 million. Tier 1 risk-based capital ratio 3.25%. Bank equity had gone from $2.87 million to $677,000, with June 30, 2008 net loss of $590,000 and 2009, a $1.287 million loss, including a $1.297 million charge off.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $9.2 million.
http://www.fdic.gov/news/news/press/2009/pr09200.html

Power struggle at Gateway (2003):
http://stlouis.bizjournals.com/stlouis/stories/2003/02/10/story1.html
(1993-Riverboat gambling boat investment)
http://www.accessmylibrary.com/article-1G1-13410595/gates-suggs-among-minorities.html

Prosperan Bank, Oakdale, Minnesota: Alerus Financial, National Association, Grand Forks, North Dakota, to assume all of the deposits of Prosperan Bank.

Started April 9, 1999 the bank had three branches with 52 employees. As of August 31, 2009, Prosperan Bank had total assets of $199.5 million and total deposits of approximately $175.6 million. Alerus Financial, N.A. will pay the FDIC a premium of 1.02 percent to assume all of the deposits of Prosperan Bank.

Prosperan had a Tier 1 risk-based capital ratio 5.01% and equity had dropped from $13.7 million June 30, 2008 to $5.5 million June 30, 2009 and from a profit in the same period 2008 of $191,000 to a net loss of $7.7 million in 2009. In addition to real estate loan problems, the Minneapolis-St. Paul Business Journal reported, "Prosperan's balance sheet was pummeled by a participation loan that turned out to be fraudulent, said Bruce Bennett, the bank's CEO. Bennett declined to comment further on the loan, saying only that it was 'sizable,' it wasn't local and it wasn't a commercial real estate or land-development venture."

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $60.1 million.
http://www.fdic.gov/news/news/press/2009/pr09199.html

United Security Bank, Sparta, Georgia, was the 26th bank to fail in the state: Ameris Bank, Moultrie, Georgia, to assume all of the deposits of United Security Bank. As of September 14, 2009, United Security Bank had total assets of $157 million and total deposits of approximately $150 million. Ameris Bank will pay the FDIC a premium of 0.36 percent to assume all of the deposits of United Security Bank.

As noted in a recent article about problems with Georgia banks, United Security Bank had just $15 million in assets in 2001, but grew tenfold by 2009 by lending in the real estate market, including construction, land development and mortgages.

The bank started September 12, 1932 and had two branches with 21 employees. Tier 1 risk-based capital ratio 5.33%. Bank equity had dropped from $10.1 million in June 30, 2008 to $5.36 million June 30, 2009, with income going from $1,000 the previous year to a loss of $3.3 million June 30, 2009 after a write-off of $3.3 million.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58 million.
http://www.fdic.gov/news/news/press/2009/pr09197.html

List of troubled Georgia banks grows
http://www.ajc.com/business/list-of-troubled-georgia-187317.html

U.S. banking regulators are meeting Thursday, November 12th to finalize their proposal to have banks prepay three years of industry assessments. The FDIC needs the cash to keep up with bank closings, now at 120 for this year. The FDIC is proposing to collect one advance payment of $45 billion as an alternative to levying another hefty emergency fee on the industry.

Reportedly the banking industry is behind the plan as while they will pay the cash upfront but not have to book the expense until the assessments comes regularly due over the three years. The agency has estimated the total cost of failures will reach $100 billion from 2009 through 2013.

List of Bank Failures:
http://www.fdic.gov/bank/individual/failed/banklist.html

Previous Bank Beat columns:
http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm

((Click on ad to learn more)) (Leasing News provides this ad "gratis" as a means to help support the growth of Lease Police)

Marlin Business Bank

Marlin Business Bank, 2795 E. Cottonwood Parkway, Suite 120, Salt Lake City, Utah was established March 12, 2008 and employs five. Tier 1 risk-based capital ratio 15.68%. Bank equity capital has risen from $12.18 million in June 30, 2008 to $14.43 million in June 30, 2009. Net Loans and leases have gone from $49.15 million to 88.38 million. Non-current loans and leases have risen from $4,000 to $254,000 in the same time period. Cash and due from depository institutions have gone from $319,000 to $446,000, with net interest income rising from $810,000 to $4.2 million. Net income the prior year was $186,000 and June 30, 2009 $1.1 million, after a net charge off of $551,000. Information, FDIC

"At September 30, 2009, the Company has outstanding $97.3 million of leases and loans funded through its banking subsidiary, Marlin Business Bank, and have $80 million in FDIC insured deposits outstanding at an average borrowing rate of 3.45% with a weighted average term to maturity of 2.6 years. Third quarter 2009 average deposit outstandings were $79.4 million at a weighted average interest rate of 3.42%."
SEC Filing: Marlin 10-Q 9/30/2009:
http://leasingnews.org/PDF/Marlin%20SEC%203rd%20Quarter.pdf

Marlin Business Bank is an "Industrial loan banks are FDIC-regulated depository institutions chartered under the laws of Utah, California, Colorado, Nevada, and Minnesota. More than 50 industrial loan banks are currently in operation, principally in Utah and California."

"Most owners of industrial loan banks are exempted from Federal Reserve Board supervision as bank holding companies...They are regulated under state law and are subject to examination by the FDIC, and to "prompt corrective action" and capital guarantee requirements if the banks they control encounter financial difficulties. In some instances, they are subject to firewalls and corporate governance restrictions that exceed those applicable to bank holding companies. "
http://www.uba.org/displaycommon.cfm?an=24

List of Industrial Banks:
http://www.dfi.state.ut.us/IBSList.htm

Classified Ads---Help Wanted

Seeking 2 Years + Experience, Vendor Focus Preferred Well Established Funding Sources Nearly 15 Years Reputation for Performance Large Commission Structure with the Right Book of Business Confidential Interview: Sarah Weston Resume: jobs@taycor.com, (310) 895-7718

Interviewing Experienced Leasing Salespeople With Ability to Develop Vendor Relationships 52 year old, Family- owned, Self Funded, Small Ticket Company Resumes to: tgalvin@clune.net www.clune.net

Vendor/Dealer Leasing Professional, generous commission's package that can lead to base salary and benefits. Join a sales team that has all the right sales tools for developing a successful vendor program in many different industries. Chris Chiappetta, Phone: 800-669-7527 ext. 1208, chris@netlease.com National Machine Tool Financial Corp., funding vendor programs since 1986. We offer competitive rates and a credit staff dedicated to vendor programs. www.netlease.com

5 years experience with established vendor relationships. We offer great funding capacity for transactions $10k to $10MM. Quail Company's established for over 30 years. Submit resume to: jrudin@quailcap.com About the company: Quail Equipment Leasing 17 years in business with the ability to develop specialized programs for vendors and unique industries: $10K to $10MM.

www.quailequipmentleasing.com

Leasing News Top Stories-November 2--6

Here are the top ten stories opened by readers:

(1) Marlin Leasing and Evergreen Clauses
http://leasingnews.org/archives/November%202009/11-06-09.htm#MarlinLeasing

(2) GreatAmerica Coming to Market with Equipment Lease Deal
http://www.anotherfp.com/newsite/newstory.php?id=2757&headline=GreatAmerica%20Coming%20To%20Market%20With%20Equipment%20Lease%20Deal§or=abs

(3) Attention: Inquiries about being on the EAR List
http://leasingnews.org/archives/November%202009/11-02-09.htm#Attention_Inquiries

(4) Banks sue Catholic Diocese over equipment leases
http://www.stclairrecord.com/news/222017-banks-sue-catholic-diocese-over-equipment-leases

(5) Construction/ Printing Equipment Repo's Up
Trucking/Machine Tool Repo's Decline
http://leasingnews.org/archives/November%202009/11-06-09.htm#ConstructionPrinting

(6) (Tie)
Creditors Back CIT's Bankruptcy
http://www.nytimes.com/2009/11/02/business/economy/02cit.html?_r=1&ref=business

(6) (Tie)
Marlin Cuts Expenses to Produce Profit
http://leasingnews.org/archives/November%202009/11-04-09.htm#Marlin_Profit

(7) (Tie)
Bank Beat---About the Nine Banks that Failed
http://leasingnews.org/archives/November%202009/11-02-09.htm#Bank_Beat

(7) (Tie)
Be cautious upgrading to Windows 7
http://www.chicagotribune.com/business/chi-tc-biz-tech-windows-1028-110nov02,0,709451.story

(8) Advantage Funding hires two
http://leasingnews.org/archives/November%202009/11-04-09.htm#Advantage_Funding

(9) Sales makes it Happen--by Mr. Terry Winders, CLP
The Use of Lease Proposals
http://leasingnews.org/archives/November%202009/11-04-09.htm#Sales_Happen

(10) Cartoon---Customer goes to his bank
http://leasingnews.org/archives/November%202009/11-02-09.htm#Cartoon

Leasing News is Number #1 in Alexa Report

Leasing 102
by Mr. Terry Winders, CLP

End of the lease options

In a lease agreement the end of lease options will be included as part of the lease. In a master lease agreement these end of the lease options will be included in a supplement or a schedule or as part of the acceptance document.

The first option is to return the equipment after giving the required number of days notice. The equipment will have to comply with the return provisions. The "end of lease options" are only available if the lease has been handled in a satisfactory manner and the lessee is not in default upon termination of the lease. Here is a standard return provision:

EXHIBIT B
To Schedule No. ____ of Lease No. ____

SPECIFIC RETURN REQUIREMENTS

Lessee shall observe, comply with and perform Section ( ) of the Lease which provides as follows:

Return of the Equipment.

(a) On the Termination Date, at Lessee's own risk and expense, Lessee shall return the Equipment to Lessor at a location specified by Lessor which is within 100 miles of ; provided, however, that upon written request of Lessor, at Lessee's own expense, Lessee shall transport the Equipment to, and provide Lessor with free indoor storage facilities for the Equipment for a period not to exceed sixty (60) days at, a facility owned or controlled by Lessee or its Affiliate and satisfactory to Lessor, and if reasonably able to, Lessee shall provide such storage, at the expense of Lessor, for any time the Equipment is stored at such location in excess of such sixty (60) day period. During such storage period, and in any event until the Equipment is actually returned to Lessor, Lessee shall continue to maintain the Equipment and insure the Equipment according to the maintenance and insurance provisions of Sections ( ) and ( ) of this Lease, at Lessee's expense. At the expiration of such storage period, Lessee shall, at its expense, transport the Equipment from such place of storage selected by Lessor to a redelivery location selected by Lessor within 100 miles of .

(b) Upon redelivery pursuant to this Section, Lessee shall cause the Equipment to be (1) free and clear of all mortgages, liens, security interests, charges, claims, rights of others or other encumbrances ("Liens") other than the Liens either (A) created or granted by Lessor, including any such Liens created or granted in connection with the purchase or financing of the Equipment, or (B) resulting from claims against Lessor not related to Lessor's ownership of the Equipment or to Lessor's lease of the Equipment (Liens described in clauses (A) and (B) above, collectively, "Lessor's Liens"), (2) in the condition in which such Equipment was delivered by Lessor, normal wear and tear excepted, and nevertheless in the condition in which it is required to be maintained pursuant to Section ( ) of this Lease, (3) in good operating condition as required by the terms of this Lease with respect to Items of Equipment, (4) in compliance with all applicable laws, rules, regulations, and orders, (5) in an appearance reasonably acceptable to Lessor, and (6) in any event, able to perform fully the functions for which the Equipment was intended. Lessee shall remove any and all identification markings made by it on the Equipment prior to redelivery. The Equipment shall be inspected jointly by representatives of Lessor and Lessee upon redelivery. If the Equipment is not in the condition required by this Section for redelivery, the term of this Lease shall continue, notwithstanding the Termination Date, until Lessee has caused, at its own expense, the Equipment to be maintained and/or repaired so that it is in the condition required by this Section, or Lessee has paid to Lessor the cost of such repairs and maintenance (including storage and transportation fees) and a reasonable time has elapsed for Lessor to make such repairs.

(c) If Lessee shall have affixed or installed any Improvement to the Equipment, Lessee will, on or before the date of redelivery and at its own expense, remove such Improvement if requested to do so by Lessor and repair any damage done by such removal. Upon the return of the Item of Equipment in accordance with this Section, Lessee shall deliver to Lessor all logs, manuals and data and all inspection, modification and overhaul records required to be maintained with respect thereto under all applicable rules and regulations of any Governmental Authority, together with any other records maintained by Lessee pursuant to Section ( )( ) of this Lease.

(d) If Lessee shall fail, for any reason or no reason, to return any Item or Items of Equipment to Lessor on the date and as required under this Section, then in addition to all other rights and remedies which Lessor shall have as a consequence of such failure, Lessee shall pay to Lessor an amount equal to the Daily Equivalent of Basic Rent for each Item not so returned, multiplied by the number of days which shall have expired between the first date on which such Item should have been returned to Lessor under this Section, and the date which is the first date on which Lessee shall have actually returned such Item to Lessor and complied in all respects with this Section regarding such Item. Such amount shall be due from Lessee to Lessor on Lessor's demand or demands from time to time. All of the provisions of this Lease shall continue with respect to such Item or Items until such Item or Items shall have been returned to Lessor in accordance with, and Lessee shall have complied in all respects with, this Lease. Neither Lessor's demand for or receipt or acceptance of, nor Lessee's payment of any amounts under this paragraph (d), shall waive any Event of Default occasioned by Lessee's failure to return any Item or Items of Equipment to Lessor on a timely basis and in accordance with this Section, nor waive or reduce any other amounts, damages, and/or claims that Lessor may have against, or the right to recover from, Lessee arising out of or in connection with such failure.

The second option is the ability to renew the lease. The renewal can be at the "then fair market rent" or at the "same rent" as paid during the initial term or a reduced rent predetermined at commencement of the lease. If a reduced rent is offered to induce a renewal it runs the risk of looking like an economic advantage and is in danger of looking like a loan. Additionally the renewal term will be added to the original term for compliance with rules on useful life. Many Lessors offer an evergreen clause that allows the lessee to renew the lease at the same rental on a month to month basis. This type of lease usually relies on a mandatory 90 day notice to return the equipment or the evergreen clause goes into effect so a month to month extension can come close to a three month extension if the lessee misses the notice requirement. A "winter green" clause is used when a six month or longer extension is automatic upon failure to notify 90 days prior to lease termination. Once again to impose an evergreen or a winter green provision you must give notice to the lessee to remind them of their notice requirement.

The third option is to purchase the equipment. The purchase option will comply with legal and tax rules as a true lease if it is stated to be for the "fair market value," to be determined at the time the option can be exercised. Any fixed price purchase options must approximate the reasonably predictable fair market value to comply with the rules.

Some leases such as a First Amendment Lease contains only two end of the lease options, the first one is a winter green renewal option that continues the lease for an additional term (usually twelve months) and then the traditional three options are available. Or the second option is a purchase option at Fair Market Value with a minimum price equal to an amount necessary to cover the lessors residual and a small profit margin. This allows the lessor to assume a residual at the end of the first term used to lower the rent requirement and comply with a rent request of the Lessee. At the end of the first term it coincides with the end of the use term of the lessee but the lessee would need to exercise one of the two options

The fourth option is to trade the equipment in to obtain new equipment and use the value over the Lessor's residual value to reduce the purchase price to the Lessor to allow for a lower Lease payment on the new lease. The Lessor is under no requirement to offer the lower lease rental to the Lessee but it appears that it helps offset the cost of obtaining new customers so it is most likely than some of this value will be used to lower the next lease rental to retain customers.

Someone once said that if the Lessee would pay correctly all that was needed was a hand shake to seal the bargain, if not then we wanted to go into court with enough documentation to prove our case. This requires a lot of specific lease documents and recorded procedures. Therefore, for that small chance that we made a poor decision, or the facts changed after acceptance, we prepare ourselves we try to obtain good documents and proper legal advice. One note of caution: you would not go to a foot doctor for a heart problem nor would you go to just any attorney for help with a lease problem. Please seek out competent lease counsel, and if you cannot find one on your own, contact any equipment lease association and they can direct you to one in your area. Improper or uneducated council on lease maters can get you into more trouble or cause you to lose money!

Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at leaseconsulting@msn.com or 502-327-8666.
He invites your questions and queries.

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

(This ad is a "trade" for the writing of this column. Opinions contained in the column are those of Mr. Terry Winders, CLP)

Adopt-a-Pet--- Overland Park, Kansas

Maggie May
Dachshund, Terrier [Mix]

"Maggie May is a sweet little black and tan Dachshund / Terrier mix with one ear up and the other one down. She is seven years young, weighs about 18 pounds and is about twelve inches high. She is very happy, loving and independent. She loves running, playing, being outside and going on long walks.

"Maggie May gets along with well with other small dogs. She also loves car rides and will jump right in and enjoy the ride. She loves for someone to throw her mouse toy and she will bring it back every time.

"We're told that Maggie May is crate trained and house trained and she hasn't had an accident in her new foster home so far. She also goes straight to bed when told to and she is not been a barker.

"As soon as she was brought into her new foster home, she adjusted quickly to her new environment. She loves our walks together and that tail of hers never stops wagging. She likes to give kisses but will be happy just lie beside you on the couch and enjoy your company.

"Maggie May would make someone a great pet who is looking for an independent and loving dog. She has stolen her foster mom's heart when she lays her little head on her lap and looks up with her sweet little brown eyes.

"If you would like to find out more about Maggie or are interested in adopting MAGGIE MAY, please contact Pat at 913-782-5539 or e-mail me at pjshelor@hotmail.com."

The Heart of America Humane Society has adoptions each Saturday at the Petsmart at 115th and Metcalf in Overland Park, the Petco at 135th and Blackbob in Olathe and the Petsmart in the Ward Parkway Shopping Center. Please contact the foster parent DIRECTLY to confirm this foster's attendance.

Heart of America Humane Society
Overland Park, KS
800.384.3143

http://www.petfinder.com/shelters/KS14.html

Adopt-a-Pet by Leasing Co. State/City
http://www.leasingnews.org/Conscious-Top%20Stories/Adopt_Pet.htm

Adopt a Pet
http://www.adoptapet.com/

Gondas: Once Richest in leasing/LA Charity's suffer
http://www.latimes.com/business/la-fi-cover-gondas8-2009nov08,0,2919321.story

Windfall Is Seen as Bank Bonuses Are Paid in Stock
http://www.nytimes.com/2009/11/08/business/08pay.html?_r=1

Hurricane Ida aims for Gulf of Mexico oil fields
http://www.reuters.com/article/topNews/idUSTRE5A60YD20091108

No iPhone killer, but Droid has lots to like
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/11/08/BU6B1AGD1N.DTL&type=tech

Windows 7 tops Vista in early consumer sales by more than 200%
http://www.chicagotribune.com/business/la-fi-windows7-2009nov07,0,7659678.story

8 popular types of mortgages
http://www.bankrate.com/finance/mortgages/which-mortgage-is-right-for-you-1.aspx

Oklahoma Out of AP Poll, Stanford In
http://www.nytimes.com/aponline/2009/11/08/sports/AP-FBC-T25-College-FB-Poll.html?_r=1

Austin's big play lifts Cowboys past Eagles
http://www.philly.com/philly/sports/20091109_Austins_big_play_lifts_Cowboys_past_Eagles.html

Tennessee Titans send San Francisco 49ers to fourth straight loss
http://www.mercurynews.com/sports/ci_13744865

Cynical View of Alex Smith
http://www.contracostatimes.com/sports/ci_13744576

Falcons pound Redskins
http://www.ajc.com/sports/atlanta-falcons/falcons-pound-redskins-190254.html

Passing game helps Patriots down Dolphins
http://www.boston.com/sports/football/patriots/articles/2009/11/08/air_and_space_passing_game_helps_patriots_down_dolphins/

Chicago Bears lose 41-21 to Arizona Cardinals
http://www.chicagotribune.com/sports/football/bears/chi-09-bears-cardinals-chicago-nov09,0,523376.story

Hasselbeck gives Seahawks' sagging season a stay of execution
http://seattletimes.nwsource.com/html/stevekelley/2010231191_kelley09.html

Giants Losing Streak Goes on, After All
http://www.nytimes.com/2009/11/09/sports/football/09giants.html?8dpc

NFL Scoreboard
http://nytimes.stats.com/fb/scoreboard.asp

Winners and losers in water deal
http://www.contracostatimes.com/top-stories/ci_13734670?nclick_check=1

Oregon vineyards report high yields & quality
http://www.kgw.com/news-local/stories/kgw_110509_business_wine_harvest.288032c69.html

Sauvignon and Slurpees? 7-Eleven launches in-house brand of wine
http://www.dailyfinance.com/2009/11/04/sauvignon-and-slurpees-7-eleven-launches-in-house-brand-of-wine/

From bottles to shoes
http://www.napavalleyregister.com/articles/2009/11/06/news/local/doc4af3c32458a9a185588429.txt

1960-- the New York Yankees fired their manager, Casey Stengel, despite his having won 10 pennants and seven World Series in 12 years. Stengel returned to baseball in 1962 as first manager of the New York Mets.

Man in the Glass
( The poem Bill Parcells is reportedly read often to his players. )

When you get what you want in your struggle for self
And the world makes you king for a day
Just go to a mirror and look at yourself
And see what that man has to say

For it isn't your father, mother or wife
Whose judgment upon you must pass
The fellow whose verdict counts most in your life
Is the one staring back from the glass

Some people may think you're a straight-shootin' chum
And call you a wonderful guy
But the man in the glass says you're only a bum
If you can't look him straight in the eye

He's the fellow to please, never mind all the rest
For he's with you clear up to the end
And you've passed your most dangerous, difficult test
If the man in the glass is your friend

You may fool the whole world down the pathway of life
And get pats on the back as you pass
But your final reward will be heartaches and tears
If you've cheated the man in the glass