California Disclosure Laws
Let Us Know What You Have Experienced and Learned
By Marshall Goldberg, Leasing News Legal Editor   

On May 6, 2024, I will be speaking at the ELFA Legal Forum with Ken Ito of the Hemar Rousso & Heald firm and Jennifer Ng, VP and General Counsel of Eastern Funding, LLC on current and upcoming revisions to California Law as it applies to the Equipment Leasing Industry.

By now, most people are familiar with the Disclosure laws that went into effect on December 9, 2022. However, it is now time for us to all analyze how these laws have affected the industry. It appears to us that most companies have their templates in order and are so far complying with the requirements to the best of their ability. We are unaware of any existing litigation at this point nor decisions on the disclosure laws. It is still early.

We would like the discussion to center around the experiences of companies post December 9, 2022. Your input is important and we are requesting your assistance.

We would love to hear from you before the conference. Unless you request, your names on any submissions will remain confidential. Please email me at mgoldberg@glassgoldberg.com. In return, if we receive any good suggestions at the forum from the very competent attorney specialists attending, we will provide you with their responses. Much thanks.

Here are some questions where your answers would be helpful.

1. Have you experienced or are you aware of any litigation, problems with the DFPI, issues with your brokers, or funding sources or the DFPI?
2. Has anyone contested your alleged failure to adequately provide disclosures??
3. Has your company successfully navigated the requirements or are their internal issues within the company regarding compliance?

Marshall Goldberg
Glass & Goldberg, A Law Corporation
22917 Burbank Blvd.
Woodland Hills, CA 91367-4203
(818) 474-1532 Direct
(818) 888-2220 Main
(818) 888-2229 Facsimile
mgoldberg@glassgoldberg.com
www.glassgoldberg.com

 

[headlines]
--------------------------------------------------------------

Confidence Falls in April, ELFF Reports
Responders Echo Fall to 52.9 to March 55.2

(Chart: ELFF)

The Equipment Leasing & Finance Foundation (the Foundation) releases the April 2024 Monthly Confidence Index for the Equipment Finance Industry.  March Index was 55.2 compared to April at 59.2, but higher than February 51.8 (a shorter month).

Mark Bonanno, President and Chief Operating Officer, North Mill Equipment Finance, said, “Monetary policy has not been as effective in taming inflation that recently came in at an annual rate of 3.2%. The U.S. government as well as the consumer (via credit cards) have unsustainable debt levels, and that will eventually cause cracks in the economy.”

James D. Jenks, CEO, Global Finance and Leasing Services, LLC, said, “The overspending by the Federal government is contributing greatly to driving up inflation.”

Jason Lueders, President, Farm Credit Leasing, said, “Our business is focused on agriculture and rural America. In many cases, ag producer profitability is down or expected to be down compared to the levels of recent years. This situation could make the cash flow and liquidity preservation benefits of a lease more attractive and valuable than they have been. The offset is that credit quality may be more of a challenge, but we expect it to remain quite manageable.”

  
Full ELFA Press Release:
https://www.leasefoundation.org/industry-resources/monthly-confidence-index/

[headlines]
--------------------------------------------------------------

Leasing and Finance Industry Help Wanted

What Will Your Career Look Like in 5 years?
By Ken Lubin, ZRG Partners, Managing Director

Predicting your career trajectory over the next five years can be both exciting and challenging. The landscape of work is continually evolving, influenced by technological advancements, economic shifts, and changing societal norms. Here are some key considerations to think about when envisioning your career five years from now:

Embracing Technology: With the rapid advancement of technology, it's crucial to stay abreast of new tools and platforms in your field. Whether it's AI, machine learning, or new software applications, being technologically adept can open new opportunities and make you more valuable in your field.

Continuous Learning and Adaptability: The concept of a "job for life" is increasingly outdated. In the next five years, you may need to adapt to new roles or even switch careers. This requires a commitment to lifelong learning and the flexibility to embrace change.

Remote Work and Flexibility: The COVID-19 pandemic has permanently altered the work landscape with remote work becoming more prevalent. Consider how this trend might affect your career. Will your role be conducive to remote work or will you need to adapt to a hybrid or office-centric model?

The Gig Economy and Freelancing: There’s a growing trend towards gig work and freelancing. This shift offers greater flexibility but also requires a different approach to career development, networking, and financial planning.

Emphasis on Soft Skills: As automation and AI handle more technical tasks; soft skills like communication, empathy, and teamwork are becoming increasingly important. Cultivating these skills can set you apart in the job market.

Sustainability and Social Responsibility: Companies are increasingly judged on their impact on society and the environment. Careers with a focus on sustainability or social responsibility may offer new and fulfilling paths.

Global Opportunities: The world is more connected than ever. Look for opportunities to work internationally or with global teams, either in-person or virtually.

Personal Well-being: There’s a growing focus on work-life balance and mental health. Careers that offer a healthy balance and align with your personal values and well-being will be more desirable.

Industry-Specific Trends: Depending on your field, there may be specific trends to consider. For example, healthcare might see advancements in telemedicine while finance could see a shift towards digital currencies.

Networking and Personal Branding: Building a robust professional network and a strong personal brand will be crucial. This can open up new opportunities and provide a safety net during industry shifts.

Envisioning your career over the next five years involves considering technological trends, adapting to new work models, and focusing on personal growth and adaptability. Stay informed, be flexible, and continuously develop your skills to navigate the future job market successfully

Ken Lubin, Managing Director
ZRG Partners, LLC
Americas I EMEA I Asia Pacific
C: 508-733-4789
https://www.linkedin.com/in/klubin

[headlines]
--------------------------------------------------------------

Commercial Finance/Leasing Finance Conferences

May 1-2: AGLF Conference, Austin, Texas
Conference Schedule, Registration, Hotel & Travel, Attendees
https://www.aglf.org/2024-annual-conference

May 5–7: Equipment Finance Connect, Nashville, Tenn.
The Only Event Connecting Equipment Dealers With Finance Opportunities
https://equipmentfinanceconnect.com

May 20: deBanked Broker Fair, New York City
https://brokerfair.org/register
Pooja Nene, Balboa Capital, Broker Relations Manager, will be covering for Leasing News.

June 5-7: National Automotive Finance Association
Annual Conference, Fort Worth, TX
Conference Info: https://www.nafassociation.com/naf2024

Sept. 4-5:  AACFB Commercial Financing Expo, New Orleans, LA
https://expo.aacfb.org/home

Sept. 10-12: CFLA Conference, St. John's, NL, Canada
https://cfla-acfl.ca/programs-services/event-calendar.html/event-info/details/id/48

Oct. 16-18: NVLA Conference, Clearwater Beach, Florida
https://www.nvla.org/page/2024conference
Sloan Schickler, Esq., Schickler & Schickler, will be covering the conference for Leasing News. She is also presenting there.

Oct. 27-29: 63rd ELFA Annual Convention, Austin, TX
https://cvdata.elfaonline.org/cvweb/cgi-bin/eventsdll.dll/EventInfo?SESSIONALTCD=CONV2024

Nov. 11-14: NEFA Funding Symposium, Indianapolis, Indiana
https://www.nefassociation.org/event/2024-funding-symposium/

To be listed or updated, please email: kitmenkin@leasingnews.org

[headlines]
--------------------------------------------------------------

Opportunities Increase for Non-Bank Institutions
By Jim Jackson, Head of the Alta Group
Mergers and Acquisitions

Despite some notable transactions, there was a continued challenge posed by economic factors ranging from inflation to rising interest rates and a possible recession.

Jim Jackson observed, “The economic environment that created a dismal M&A market for equipment finance companies in 2022 carried into and throughout 2023, providing a second consecutive year of low activity.

“Few things are more effective at reducing M&A activity and lowering company valuations than significantly increasing interest rates.”

The equipment finance and leasing industry remains strong nonetheless, he says, as independent and captive finance companies continued to perform well during 2023. Senior leaders of many companies reported record-high originations last year.

While banks traditionally rank among the strongest buyers of independent finance companies, acquisition activity last year was limited. The 2023 failures of Silicon Valley Bank, Signature Bank and First Republic Bank sent shock waves throughout the banking community, Jackson writes, and served as a wakeup call to closely review investment portfolios for potential risks.

“Many banks shifted priorities and began to focus their attention and resources back to their core offerings in an effort to attract and retain key client relationships that could offer the stability of strong deposit balances,” Jackson notes. “Several banks effectively shut down their buy desks to syndication sources and others took the added step to diminish the efforts of their former full-service equipment finance divisions to a mere product offering at the bank.”

Independent equipment finance companies continue to be attractive acquisition targets as they generally provide for an above-average, risk-adjusted return over the long term. Those that properly structure credit and pricing, have a deep knowledge of the underlying assets they finance and understand how their customers will perform in both good and bad economic cycles will generally outperform the rest of the industry players.

“With the majority of the banks sitting on the sidelines, at least in the near term, and the economy sending mixed signals, I believe this is an excellent opportunity for non-bank financial institutions to look opportunistically at acquisitions,” Jackson believes. “Large strategic independent finance companies, captive finance companies, private equity firms, and family wealth institutions—who are generally priced out of the market as potential buyers when banks are active—could become compelling bidders.

“Given this uncertainty, it is understandable that potential buyers and sellers would be content to sit on the sidelines and take a wait-and-see attitude toward where the economy is headed.

 “Those buyers that take a more measured approach to seeking out strategic opportunities to acquire companies that can provide them with strong management teams, equipment knowledge and expertise, and a strong customer base will be the winners in the long run.”

The article originally appeared in the Alta Group newsletter “Esential Intelligence for a Changing Industry.

Jim Jackson
jjackson@thealtagroup.com
James R. (Jim) Jackson, Jr. is co-Chief Executive Officer at The Alta Group and leader of its Merger and Acquisition Advisory Practice.

 

[headlines]
--------------------------------------------------------------

##### Press Release  ######################

2024 Maxim Commercial Capital Reports
Strong Loan Volume in Quarter 1

Hard Asset Secured Lender Eased Credit
Guidelines during the Period

LOS ANGELES, CALIF.) – Maxim Commercial Capital (“Maxim”) announced a strong start to 2024. The hard asset secured lender provided equipment purchase and cash out financings in 31 states during the first quarter of the year. Maxim is a national provider of loans and leases from $10,000 to $3 million collateralized by class 6 and 8 trucks, trailers, heavy equipment, and real estate.

To fulfill growing demand, Maxim is seeking to hire a Credit Analyst Intern, Documentation and Funding Coordinator, Asset Administrator, and Collections Specialist to work in the company’s Los Angeles office. Please visit Maxim’s Career Page on its website to learn more.

Michael Kianmahd, Maxim’s CEO, reports, “We are deeply committed to serving our clients and referral partners with breadth and depth. Maxim excels at providing essential financing to borrowers who don’t fit traditional lenders’ guidelines. We continuously invest in analytical tools and processes to understand how best to support their needs.”  

Owner operators of used class 8 trucks, including start-ups and borrowers with challenged credit, benefitted from higher loan-to-value ratios from Maxim during the quarter. Transactions included financing for:

• A start-up owner operator with good credit to buy a 2018 Freightliner Cascadia 125 with 597K miles for 20% down on $44,235;

• An experienced owner operator with challenged credit to buy a 2019 Kenworth T680 with 433K miles for 23% down on $38,000;

• And an owner operator with challenged credit to buy a 2018 Freightliner Cascadia 126 with 466K miles for 25% down on $45,386.

Finance brokers increasingly turned to Maxim during the quarter for customers seeking to finance heavy equipment purchases or cash out financing to grow their businesses. Fundings during the quarter included:

• A creative $25,000 sale leaseback of a 100% owned 2014 Freightliner Cascadia Tri-Axle Dump Truck so a start-up serving the commercial hauling and construction industries can expand his business;

• 60% financing for a New Jersey-based buyer with a prior bankruptcy to buy a 2023 Case TR310B Skid Steer; and,

• 50% financing for an Arizona-based contractor to purchase a 2024 Brazos 40’ Pit Boss Belly Dump to haul dirt and gravel.

About Maxim Commercial Capital

Maxim Commercial Capital helps small and mid-sized business owners nationwide by providing loans and leases (“financing”) from $10,000 to $3 million secured by trucks, trailers, heavy equipment, and real estate. It funds equipment purchase financings and leases, working capital, and debt consolidations. Maxim’s more creative financing structures leverage equity in real estate and owned heavy equipment to facilitate growth and preserve customers’ cash. As a leading provider of transportation equipment financing, Maxim supports startup and experienced owner-operators and non-CDL small fleet owners by funding loans and leases for class 8 and class 6 trucks, trailers, and reefers

### Press Release #########################

[headlines]
--------------------------------------------------------------

Watch at Home
by Fernando Croce, Leasing News Movie Reviewer

Broadway veteran, activist and Academy Award trailblazer, Louis Gossett Jr. (1936-2024) was a reliably engaging screen presence for decades. So check out our list for his best movie roles, from box-office smashes to overlooked sleepers.

A Raisin in the Sun (1961): Gossett made his screen debut in this film adaptation of Lorraine Hansberry’s acclaimed play, for which he reprised his Broadway role. The story follows the Youngers, a Black family struggling with the American Dreamin Chicago during the 1950s. Following the death of the patriarch, they see a hefty insurance payment coming their way. While the widow, Lena (Claudia McNeill), hopes to use the money to fulfill thedream of owning a house, her son, Walter Lee (Sidney Poitier, in an electrifying turn), wants to invest it into a business. While contemplating these contrasting approaches, the film tackles such thorny issues as tradition, identity, and prejudice. Gossett plays George Murchison, the wealthy suitor of Lena’s conflicted daughter, Beneatha (Diana Sands).

The Landlord (1970): Gossett had a striking early role in this piquant social satire, which marked the directorial debut of New Hollywood stapleHal Ashby (“Harold and Maude”).Elgar Enders (Beau Bridges)is a wealthy scion who purchases an inner-city Brooklyn tenement with plans of evicting the tenants and turning it into a luxury home. He experiences a change of heart, however, when he gets to know the people living there and decides instead to help them with their problems. Much to the horror of his aristocratic family, he also falls in love with a pair ofBlack women, one of whom has an unstable boyfriend (Gossett, making a vivid impression). Taking a look at racial tensions in a city under the threat of gentrification, Ashby’s film is sharp, lively, and surprisingly poignant.

Skin Game (1971): A sort of early draft for Mel Brooks’ “Blazing Saddles,” this comic Western walks a fine line in its lighthearted treatment of a tragic subject. Taking place in the American South before the Civil War, it follows two con-men, Quincy Drew (James Garner) and Jason O’Rourke (Gossett) as they travel from town to town. Having met behind bars, the two come up with an ingenious scheme in which Quincy pretends to be a struggling merchant who sells Jason as his last slave to the highest bidder beforehelpinghim escape. The con is complicated by such characters asa real slave Jason falls for (Brenda Sykes) and a tenacious runawaytracker(Ed Asner). Directed by TV stalwart Paul Bogart, the film is buoyed by the chemistry between Garner and Gossett.

An Officer and a Gentleman (1982): Gossett made history as the first Black actor to win a Best Supporting Actor Oscar in this romantic crowd-pleaser and box-office sensation. Richard Gere stars asZack Mayo, a misfit who aims to straighten out his troubled life by enlisting with the U.S. Navy. His training is an arduous one, particularly under the tutelage of no-nonsense drill sergeant Emil Foley (Gossett). While enduring Foley’s tough lessons, Zack falls in love with Paula (Debra Winger), a young factory worker who helps him through emotional ups and downs. Director Taylor Hackford (“Ray”) keeps things moving, giving the predictable, basically old-fashioned storya punchy sheen of grittiness. Others in the compellingcast include Keith David, Lisa Blount and Robert Loggia.

Diggstown (1992): Some two decades after “Skin Game,” Gossett is back in the con-man game in this underrated comedy-drama from director Michael Ritchie (“The Bad News Bears”). The title refers to the Georgia town where the story unfolds, a place obsessed with boxing and lorded over by a powerful businessman named Gillon (Bruce Dern). Into Diggstown arrives Caine (James Woods), an incorrigiblehustler fresh out of jail and looking for the next score. He finds it in a bet that he’ll supplya boxerwho can knock down ten of Gillon’s best menin a single day. For this, Caine brings in his old pal, Palmer (Gossett), who soon finds himself in over his head. Breezy and flavorful, the film plays like an offbeatcousin to “The Sting.”

Fernando Croce is a nationally recognized film reviewer and has been contributing to Leasing News since 2008. His reviews appear each Friday.

German Shepherd Mix
Tustin, California Adopt-a-Dog

Nate

Male
Puppy
Small
Adoption fee $55.00

OC Animal Care
1630 Victory Road
Tustin, CA 92782
(714) 935-6848
OCCRocpetinfo@occr.ocgov.com

News Briefs

Powell Suggests Interest Rates Could Stay High
    a Longer Period
https://www.nytimes.com/2024/04/16/business/powell-interest-rates-inflation.html

Atlanta's Hartsfield-Jackson keeps its crown,
    remains world’s busiest airport
https://www.ajc.com/news/business/atlanta-airport-is-again-named-worlds-busiest-in-2023/VCBQUEFIE5F37N6SS5BJUDFXDY/

Netflix Password Crackdown Delivers
    Millions of New Customers
https://www.wsj.com/business/earnings/netflix-nflx-q1-earnings-report-2024-78eababf?mod=business_lead_story

Chinese Exports Are Threatening Biden’s
    Industrial Agenda
https://www.nytimes.com/2024/04/18/us/politics/china-exports-biden-industrial-agenda.html

Trains, Trucks and Tractors: The Race to
    Reroute Goods From Baltimore
https://www.nytimes.com/2024/04/17/business/ports-truckers-baltimore-bridge.html

Taylor Swift Sells a Rainbow of Vinyl Albums
    Fans Keep Buying Them
https://www.nytimes.com/2024/04/17/arts/music/taylor-swift-albums-versions-vinyl.html

 

[headlines]
--------------------------------------------------------------

Test Your Knowledge About Electric Cars
    With Our Quiz
https://www.wsj.com/business/autos/electric-vehicle-quiz-ea7247f3?mod=business_lead_pos5

[headlines]
--------------------------------------------------------------

Sports Briefs---

[headlines]
--------------------------------------------------------------

California News Briefs---

Insurers won’t renew some homes, citing risk of
   earthquake-induced fires. This map shows where
https://www.sfchronicle.com/sf/article/home-insurance-earthquake-fire-19404812.php

Stanly Ranch Residences in Napa Partners with  
  Sotheby's International Realty to Sell Multi-million-dollar Homes
Currently, there are 28 Villas, Starting at $3.6 million, and a first phase of 24 homes for $4.8 million
https://napavalleyregister.com/news/local/business/napa-luxury-home-estate-stanly-ranch-resort/article_21cf4c34-f75b-11ee-abae-fb3fafb83b1a.html

[headlines]
--------------------------------------------------------------

Gimme that Wine

 

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

Bonny Doon Vineyard -- First US Winery to Launch
    Low Carbon Footprint Paper Bottle
https://www.winebusiness.com/news/article/286294

Baron Philippe de Rothschild Launches a New  
  Collection of Mouton Cadet Wines Inspired by
the Next Generation of Rothschild Family Members
https://www.winebusiness.com/news/article/286291

Wine bottle maker cutting 16 jobs on exit from
Solano County after nearly 2 decades
https://www.northbaybusinessjournal.com/article/industrynews/solano-california-wine-bottle-real-estate-layoffs/

Award-Winning Vintner and Napa Valley Historian
  Tor Kenward Has Made His Debut Appearance
On The Kelly Clarkson Show
https://www.winebusiness.com/news/article/286315

Napa Valley Versus Napa Valley
“Napa winemakers are confused and frustrated”
https://www.winespectator.com/articles/napa-valley-versus-napa-valley