Monday, October 4, 2010
Archives--October 4, 2000
Archives--October 4, 2000
“Good morning Kit!
“I am hoping to be the first to tell you about an exciting announcement concerning our new parent corporation, US Bancorp Leasing and Financial. I am sending you the following link showing an announced merger of US Bancorp with Firstar Corporation, a merger which will close in the first quarter of the year 2001.
“I am sending this to you to let you know that nothing will change concerning the Operations and Direction of The Manifest Group. As we merged with US Bank, one of the premises that was a positive for us was the fact that US Bancorp did not have a solid small ticket platform to process small ticket leasing transactions. Lyon Financial and The Manifest Group filled that void for USBL&F. The same is true with the merger to Firstar Corporation--they also do not have a small ticket platform and will be looking to us to continue our success in the small ticket market. We will continue to support the broker marketplace and follow the same policies and procedures which have made us who we are today.
“The management team will stay in place, and we will continue to operate from our Marshall, MN facilities. With this change comes nothing but exciting opportunities for our internal and external customers alike!
“If you have any further questions, feel free to give me a call.”
Free Posting for those seeking employment in Leasing:
All “free” categories “job wanted” ads:
ELFA Continues Support Evergreen without mandatory notice
The Equipment Leasing and Finance Association continues its support of the Evergreen clause against mandatory notice to the lessee.
An "Evergreen Clause," legal in 47 states, requires a 90 day notice from the lessee to exercise the residual and if they do not send in such a notice, the “evergreen clause goes into effect,” meaning the lessee makes extra payments. While Leasing News has been writing about this for years, ELFA continues to lobby its influence as states hear more and more complaints from business owners and officers about the extra payments because they did not give a 90 day notice. In fact, some leasing companies extend for 12 and 24 months, even on $1.00 purchase options.
Leasing News has been writing about requiring the lessor to give a mandatory notice to the lessee regarding the expiration of their lease contract and exercise of the residual for several years, noting that Leasing News readers support this, even thought ELFA continues its lobbying efforts against it, as expressed to state legislators as well as brought up in the September Monitor printed and digital magazines, where William Sutton, President is quoted in the story, as well as quotes highlighted:
“In the short time I’ve been here, I‘ve learned that in this year along, we’ve had 25 different bills in 15 states that have something to do with automatic renewals. As a result, our office of state government affairs in looking into all of those bills and where they are headed to ensure uniformity and that our products are properly treated and defined.”
“So, we have a lot of exciting things slated for the future here…but our members can count on the fact that we will be constantly focusing on those services and benefits that give our members what they want.”
It is apparent that ELFA does not represent the industry as expressed in Leasing News by its readers, but its membership, particularly companies like Marlin Business Services, Mount Laurel, New Jersey (NASDQ-MRLN) who reported a $1.6 million net profit second quarter, 2010 due to the Evergreen Clause (1), which also resulted in an "D-" rating from the Better Business Bureau(2).
Many lessees in the small ticket marketplace are not aware as they often don't count payments or realize the original term is up. Even large corporations are fooled and have found themselves paying two extra years in lease payments.
This problem is also compounded when leases are sold or assigned and the new party is unaware of any residual and continues to bill for payments.
The industry is losing customers due to the trickery involved.
(1) "Evergreen" calendar makes Marlin Leasing Profitable
(2) Marlin Leasing BBB Report (D-):
ELFA and Evergreen/Winter Green Clauses
BBB: Rating Leasing Companies
These are leasing companies who have appeared recently in Leasing News:
21st Century Leasing, San Diego, California
Allegiant Partners, San Rafael, California
Arvest Bank Leasing, Fayetteville, Arkansas
Axis Capital, Grand Island, Nebraska
Charter Capital, Scottsdale, Arizona
Five Point Capital, San Diego, California
Key Equipment Finance aka KeyBank
Lease Corporation of America, Troy, Michigan
Mar Vista, Villa Park, California
Steelcase Financial Services, Grand Rapids, Michigan
Summit Funding Group, Cincinnati, Ohio
US Bancorp Manifest Funding Services aka Lyon Financial Services, Inc.
American Capital Group, Inc., Irvine, California
Bankers Capital, Northborough, Massachusetts
CSI Leasing, St. Louis, Missouri
De Lage Landen Financial Services, Incorporated, Wayne, Pennsylvania
Financial Pacific, Federal Way, Washington
Great America Leasing, Cedar Rapid, Iowa
Leasing Corporation of America
Alliance Funding Group, Orange, California
Jules & Associates, Los Angeles, California
Matrix Business Capital, Long Beach, California
Matsco Financial, Emeryville, California
Orion First Financial, Gig Harbor, Washington
Pawnee Leasing, Fort Collins, Colorado
Providence Capital Funding, Brea, California
Southern California Leasing Inc., Tustin, California
TCF Equipment Finance, Minnetonka, Minnesota
Tristar Capital, Santa Ana, California
Ability Capital Solutions, Long Beach, California
Somerset Capital Group, Milford, Connecticut
Enterprise Capital Partners dba Enterprise Leasing, Spokane, Washington
Celtic Leasing, Irvine, California
Balboa Capital, Irvine, California
Direct Capital, Portsmouth, New Hampshire
LEAF Financial Corporation, Philadelphia, PA
Marlin Leasing, Mount Laurel, New Jersey
Barklay Capital, Inc., Costa Mesa, CA
Benchmark Financial Group, Aliso Viejo, California
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Bank Beat--Another in Florida and State of Washington
The three branches of Shoreline Bank, Shoreline, Washington, were closed with GBC International Bank, Los Angeles, California, to assume all of the deposits. The bank became the 129th FDIC-insured institution to fail in the nation this year, and the tenth in Washington.
Shoreline opened September 15, 1999 to service the Seattle-Tacoma-Bellevue area. All three branches were in King County, located in Shoreline.
Washington Department of Financial Institutions told the newstribune.com "...“there might be another couple more (bank failures) this year, but I don’t think we’ll see quite this volume next year.”
Shoreline had 31 full time employees as of June 30, 2010. Equity had dropped from June 30, 2009 to June 30, 2010: $9.995 million to $1.79 million with $16 million in non-current loans, mostly real estate, centered on land development and construction lending. Shoreline lost $5 million the year before period to $3.36 million. There was $973,000 charge off to commercial and industrial loans, $551,000 to nonfarm nonresidential property loans, and $313,000 to construction and land development. Tier 1 risk-based capital ratio 2.11%.
As of June 30, 2010, Shoreline Bank had approximately $104.2 million in total assets and $100.2 million in total deposits. GBC International Bank will pay the FDIC a premium of 0.25 percent to assume all of the deposits of Shoreline Bank. In addition to assuming all of the deposits of the failed bank, GBC International Bank agreed to purchase approximately $65.7 million of the failed bank's assets. The FDIC will retain the balance of the assets for later disposition.
GBC International, who changed their name from Guaranty Bank of California in August, 2007, operates six branches in California – two in San Francisco, and one each in Los Angeles, Monterey Park, Walnut and Westminster. The press release from GBC on the acquisition stated GBE was "...one of the top five lenders utilizing the U.S. and a preferred lender of the U.S. Small Business Administration (SBA) Export Express and Export Working Capital Program."
"Based on a recent ranking by an industry consulting service, GBCIB is currently ranked number 16 based on the return on equity and ranked number 17 for overall performances as of June 30, 2010 among 278 banks in California.
"The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. Ex-Im Bank’s mission is to assist in financing the export of U.S. goods and services to international markets. Ex-Im Bank provides working capital guarantees, export credit insurance, loan guarantees and direct loans. GBCIB has been granted authority to approve Ex-Im Bank’s loan guarantees up to $5 million per borrower. Also, with the recent passing of a $30 billion Small Business Job Act, it allows GBCIB to approve SBA Export Working Capital loans up to $5 million per borrower."
“We are expanding our operations to Washington state, bringing greater access for small businesses who export products and services to the global markets," GBC President and Chief Executive Officer Dennis Lam said.
"Our multi-lingual staff can assist you in English, Spanish, Indonesian, Mandarin, Cantonese, Vietnamese, Burmese, Korean, and Russian."
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $41.4 million.
The 12 branches of Wakulla Bank, Crawfordville, Florida were closed with Centennial Bank, Conway, Arkansas, to assume all of the deposits. It was the 25th bank to fail in Florida this year. Their target area was Tallahassee with five branches, two in Bloutstown, two in Crawfordville, and one each in Bristol, Panacea, and St. Marks. Ironically the bank opened October 1, 1974 and was closed on the same date in 2010. It appears to be a conservative area, anti-government, who like other community banks tried to cash in on the Florida land boom.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $113.4 million.
"This has been in the works for some time. Wakulla Bank has been under audit by the FDIC for about 2 years now. It suffered because of two large loans that defaulted, one a little over a million dollars and the other about 3.5 million, not to mention all the personal and home mortgage loans that are in default. Bob - remember a recent article about the Wildwood County Club loan going into foreclosure?"
"Sounds like things are getting worse. Not good.
"I am pretty sure FDIC is ran by the government? If that is true, I wouldn't put too much faith into the government."
Wakulla Bank had gone from 142 full time employees to 135 full time employees June 30, 2010, showing $46.5 million in non-current loans, a loss of net equity from $38.4 million June 30, 2009 to $12.8 million June 30, 2010. The bank had lost $4.3 million the previous time period and this June 30, 2010 period $15.34 million, after $3 million in real estate in foreign offices, $1.77 million in construction and land development, $932,000 secured by 1-4 family residential property, $836,000 in commercial and industrial loans, $386,000 in loans to individuals. Tier 1 risk-based capital ratio: 1.31%.
To get an idea of Crawfordville, here are homes for sale:
As of June 30, 2010, Wakulla Bank had approximately $424.1 million in total assets and $386.3 million in total deposits.
The FDIC and Centennial Bank entered into a loss-share transaction on $212.7 million of Wakulla Bank's assets.
List of Bank Failures:
Top Stories---September 27-Oct. 1
Here are the top ten stories opened by readers:
(1) New Leadership at ELFA accepts Trebels as Member
(2) Out of Broker Business or Business Altogether
(3) Merrilees Joins RTR Services
(Tie) (4) Tax and Credit Act of 2010 will increase Tax Leasing
(Tie) (4) First Trillion to Open in November!
(5) Commercial Equipment Lease, Eugene, Oregon for Sale?
(6) Involuntary Chapter 7 BK filed against Schwartz
(7) Allied BK Creditors Subpoena Donner & His Records
(8) America's Most Expensive Zip Codes
(9) Leasing 102 by Mr. Terry Winders, CLP
(10) 2010 NAELB Eastern Regional Meeting Atlanta, Georgia
One of the hardest requirements for lease salespersons to deal with is requesting personal guarantees. Usually, but not always it is because you need to add additional strength to the credit decision. On some occasions it is because the language it a lease agreement does not allow for additional collateral, down payments, or loan covenants and you need additional protection. This is especially true in companies with a limited or small group of owners. If ownership is vested in a small group they have the ability to make all kinds of decisions that may leave you holding the bag if business begins to go south.
One of the most effective ways a lease has to compete with loans, that have the ability to require down payments or other credit enhancements, is to request a personal guarantee.
This guarantee allows you to litigate the individual in addition to the business. This puts all the guarantors’ personal assets at risk to cover any short fall after the equipment has been repossessed and sold. However, understanding the requirements of each State is important because some States require you to complete litigation against the company prior to requiring the guarantor to step up to the plate. In these States the use of “Co- Lessee” is preferable, over a guarantor, so you can request past due payments and shortfalls immediately.
Requesting a guarantee usually sounds like you do not believe the business can live up to the agreement and some lessees take offence to the request so the approach is very critical. One way is to explain that you want them to have complete freedom to manage their business assets without interference so if they give you a guarantee they can move assets and cash in any manner they wish.
Most loans require loan covenants or indentures in companies with tight cash or limited ownership. This puts a lot of stress on the company that you can relieve with a personal guarantee and this approach makes you look like you are doing them a favor instead of making it sound like their credit is no good. Many small ticket lessors rely more on the consumer report than bank and trade references. It is also important in larger leases, where most banks and even major suppliers will demand a personal guarantee.
The best way to present it is to make it "standard" and not a major obstacle to overcome. Once the home address and social security are on the application, this is an indication that the applicant is aware you will be relying on the approval with his or her personal guarantee.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at email@example.com or 502-649-0448
He invites your questions and queries.
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
### Press Release ############################
Kirchner joins BancLease Acceptance
BancLease Acceptance Corporation announced the addition of Dana Kirchner as Vice President of sales and marketing.
Dana has over 15 years of experience serving the broker community, with 20 years experience in leasing. He has held various positions in his leasing career including account executive, regional sales representative, and Vice President for companies such as Pioneer Capital Corporation (1999 – 2009,) Commerce Security Bank (1998 – 1999), Vice-President, AT&T Capital Leasing Services(1993 – 1996); Regional Operations Manager, AT&T Capital Leasing Services (1989 – 1993), Vice-President, Credit, Comstock Leasing (1984-1989). He has a BS Finance degree from California State University-Chico
“We are excited to have Dana join us at BancLease Acceptance” said Ron Mitchell, SVP. “His experience with the broker community and his overall experience in the leasing field will be a great asset and will contribute to the continued growth of BancLease Acceptance.”
BancLease Acceptance buys business from brokers on a national basis for A and B+ quality credits. Products include application only to $75,000, application only medical to $135,000 and full financial disclosure transactions up to $5,000,000 (sometimes higher). Most equipment types are accepted, including software only and specialty vehicles.
Cummins Joins American Lease Insurance
SUNDERLAND, MA – David Cummins has been named senior sales executive by American Lease Insurance Agency Corporation (ALI). He was most recently executive sales manager for Great American Insurance’s Specialty Equipment Services, Equipment Finance Solutions Group, managing major account relationships and developing new business.
“I’m looking forward to delivering high-quality insurance programs to equipment finance companies,” states Cummins and adds, “I’m very familiar with their needs. ALI has a terrific business model and exceptional processes that facilitate providing ‘best-in-class,’ comprehensive insurance programs – and I am pleased by the opportunity to work with Steve (Dinkelaker), who has been a leader in the industry for 20 years.”
Cummins’ 10 years of direct experience selling insurance to the equipment finance industry is complemented by a broad background in leasing and finance. Prior to his stint at Great American Insurance, Cummins worked for the Chase Manhattan Corporation, ultimately as vice president, manager of securitization of Chase Automotive Finance. A resident of New York City, Cummins holds an MBA in finance from the Leonard N. Stern School of Business at New York University. He is a licensed insurance producer in 14 states.
ALI President Steve Dinkelaker remarks, “Having worked for a competitor, Dave possesses a unique and objective perspective on the ALI Program, which makes him ideally equipped to understand its strengths and present its advantages. His background in finance and his experience managing client relationships will help us to continue to grow in a challenging economic environment.”
The ALI Program provides equipment finance companies complete portfolio protection on eligible equipment and comprehensive tracking of alternate insurance. It provides lessee customers with “group-like” coverage superior to standard commercial policies, with no deductible, and requires no premium advances or investment on the part of the equipment finance company. Fully automated, the program is integrated with all major lease accounting software programs.
Founded in 2000 by licensed insurance agent and broker Steve Dinkelaker, American Lease Insurance provides a comprehensive insurance program to 30 equipment leasing and finance companies across the United States today. ALI is headquartered in Sunderland, Massachusetts, and is an active member of the Equipment Leasing and Finance Association (ELFA) and the insurance industry’s Association for Cooperative Operations Research and Development (ACORD). For more information, go to www.aliac.net.
#### Press Release #############################
Leasing News: The 2010 Toronto International Film Festival
The Toronto International Film Festival is one of the most respected fests not just because of the quality and variety of entries from all the corners of the world, but also because it allows audiences an early glimpse at many of the movies that will make news in the upcoming few months. Here are some titles to keep an eye on as releases get serious and awards seasons approaches.
127 Hours: After winning the Oscar for “Slumdog Millionaire,” director Danny Boyle tackles the challenging task of filming the true-life ordeal of Aaron Ralston (James Franco), a carefree rock-climber who finds himself stuck for days at the bottom of a canyon with his arm pinned underneath a boulder. It’s surprisingly exhilarating stuff considering the claustrophobic material, and with a superb performance by the underrated Franco.
Black Swan: Darren Aronofsky moves from the wrestling ring (“The Wrestler”) to the ballet stage in this fairy-tale about the pitfalls of ambition and the search for beauty. In a performance sure to be remembered come Oscar time, Natalie Portman stars as a driven ballerina who undergoes bizarre psychological ordeals while preparing for the main role in a production of Tchaikovsky’s “Swan Lake.” Fans of the director’s brand of dark grace will not be disappointed.
Cave of Forgotten Dreams: A tireless explorer, legendary German filmmaker Werner Herzog takes us on another entrancing journey here. Gaining exclusive access into the Chauvet caves in the south of France, Herzog takes his cameras into rocky formations and wall drawings which have somehow remained in outstanding condition for thousands of years. The result is an eye-filling tour of humanity’s earliest remains, with the extra bonus of a 3-D presentation.
The King’s Speech: There’s already Oscar talk going around for this pleasing period piece, which won the Audience Award at this year’s festival. Colin Firth stars as King George VI, who must get rid of a terrible stutter before he can take his place on the British throne. The movie tells the gently comic friendship that develops between the monarch-to-be and the unorthodox therapist (Geoffrey Rush) hired to help him literally find a stronger voice.
Meek’s Cutoff: Kelly Reichardt (“Old Joy,” “Wendy and Lucy”) continues her streak of extraordinary pictures with this one-of-a-kind road movie, set in the Oregon plains in the 19th-century. It tells the story of a wagon train that’s lost its way in the desert thanks to Meek (Bruce Greenwood), their misguided trail leader. They meet a mysterious Native American along the way, but will he lead them to safety or into further peril? A Western like no other.
Potiche: Fans of Catherine Deneuve will be delighted by Francois Ozon’s light and colorful comedy, which gives the grand dame of French cinema her most elegantly funny role in years. As the trophy-wife of a ruthless, openly philandering industrialist who takes control of her husband’s factory, Deneuve has an infectious blast. Also look for her poignant scenes with Gerard Depardieu, as a former lover who becomes her political rival.
Tabloid: A documentarian with an endless fascination for the strange, Errol Morris may have found his wildest subject yet in Joyce McKinney, a former Southern beauty queen who in the late 1970s went on an adventure too wacky not to be true. Telling her own story of kidnapped Mormons and cloned puppies, McKinney paints a breathlessly entertaining portrait of the madness of tabloid-made celebrities, which Morris records with a mix of delight and horror.
The Trip: A remarkably prolific and versatile director, Michael Winterbottom follows this year’s dark drama “The Killer Inside Me” with this chummy, very funny road-trip comedy. Playing themselves (or, rather, a jokey version of themselves), Steve Coogan and Rob Brydon go on a culinary holiday around England, trying out expensive dishes at fancy restaurants when not matching celebrity impersonations. Slight but hilarious, it’s like a British version of “Sideways.”
Uncle Boonmee Who Can Recall His Past Lives: The title is just the first unique thing about this marvelous Thai fantasy, the surprise winner of this year’s coveted Palme d’Or at the Cannes Film Festival. Following the various yarns spun by Uncle Boonmee on his deathbed, Apichatpong Weerasethakul weaves a beguiling mosaic of reincarnation and ghosts that’s at the same time remarkably sophisticated and light as air, challenging and immediately accessible.
Fayetteville, Arkansas ---Adopt a Dog
Fayetteville Animal Services
Other animals at Fayetteville:
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
Business Highlight: Lease $mart
Huntington prepares for growth
Asia Stocks at 2 - Year High as Dollar Gains vs. Yen
China Internet Co. Biggest US IPO rally in 3 Years
New Era Begins at FASB
Macy's puts Haitian art in stores
Casinos Now See Online Gambling as a Better Bet
Giants clinch playoff spot
Braves clinch wild card, first postseason berth since 2005
Redskins beat Eagles, 17-12, in Donovan McNabb's return to Philadelphia; Michael Vick injured
Falcons need last-minute heroics to beat 49ers 16-14
Offense lets Cutler down
Oakland Raiders dominated on ground by Houston Texans, back in last place
Seahawks fall 20-3 to St. Louis Rams
Yes, there’s life after football
In Marin: Unions want to organize Marijuana Workers
U.S. Wineries Increase Their Use of Cork Closures
Drizzle chills Sonoma County grape growers
Harvest in full swing in Carneros
Santa Cruz County grape harvest begins
Pinot Gris' popularity soars
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in American History
What is it
Not just the precious few
From a World Series
They do not bring to mind
Yet they stand for something For times I traveled
Written by Gene Carney, published in
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
How to play:
Refresh for current date:
See USA map, click to specific area, no commercials
Real Time Traffic Information
You can save up to 20 different routes and check them out with one click,
Independent, unbiased and fair news about the Leasing Industry.