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Leasing News is a web site that posts information, news, and
entertainment for the commercial bank, finance and leasing industry

Wednesday, February 4, 2015

Today's Equipment Leasing Headlines

Comments on ELFA President/CEO Retiring
Chief Operating Officer Elected to Office in 2016
  Classified Ads---Legal
Loan/Lease Regulations --- Update-New States
 “Don’t Have a License? Not Caught, You’re Lucky, so Far”
Leasing News Advisor
   Shawn Halladay
Sales Make It Happen – By Steve Chriest
     Hidden Issues
Longest Active Certified Leasing Professional
   Since 1985  W. Russell (Russ) Runnalls
   Letters?---We get eMail!
(News and Reactions to News)
Ninth Circuit Allows Bank to Freeze Chapter 7 Account
 ---But New York Court Sanctions Bank for Same Conduct
   By Tom McCurnin, Leasing News Legal Editor
Tick of the Clock Grows Louder for
  Small Business Lending Fund Repayments
Niche PR Firm Launches New Marketing Campaign Platform
  Susan Carol Associations
St. Bernard (Mix)
Columbus, Ohio  Adopt-a-Dog
 Attorneys Who Specialize in
  Banking, Finance, and Leasing
News Briefs--- 
$1.4 Billion Recovered as Result of Sigtarp Investigations
 Central Banks in India and Australia Take Steps to Lift Growth
  King of ‘Hamptons Versailles’ in court over $250M palace
   10 years later, Amazon celebrates Prime’s growth

Broker/Funder/Industry Lists | Features (writer's columns)
Top Ten Stories Chosen by Readers | Top Stories last six months (Be Careful of Doing Business)
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Comments on ELFA President/CEO Retiring
Chief Operating Officer Elected to Office in 2016

Rick Remiker
Former ELFA Chairman
Sr. Executive Vice President, Commercial Banking
Huntington National Bank

"Woody Sutton has done a tremendous job leading the Equipment Leasing and Finance Association, Equipment Leasing and Finance Foundation, and PAC over the last 4+ years.  Under Woody's strong leadership the ELFA has experienced improved member retention, expanded programming, strong advocacy on key issues (notably Lease accounting), along with a growth in conference and convention attendance.  Woody was also instrumental in hiring a number of exceptional ELFA colleagues who will play a vital role in shaping the future of our industry.  While I am disappointed Woody will be leaving at the end of 2015, I am honored to have worked alongside him during his ELFA tenure. 

"I am also proud to see Ralph Petta step into the President and CEO role next January.  I have worked hand in glove with Ralph over much of the past 20 years on key Association committees, projects, and boards.  Ralph's deep knowledge of the industry, key players, and critical issues will serve him well in expanded duties starting in 2016.  I am confident Ralph will lead the ELFA to even greater heights."

Adam Warner
Past ELFA Chairman
Key Equipment Finance

 “I was proud to serve on the Succession & Transition Committee that recruited and on-boarded Woody to the EFLA.  I consider it one of my greatest accomplishments in service to our industry.  Additionally, I am honored to be asked to Chair the new Transition Committee to oversee a successful changeover to Ralph Petta as President and CEO.  I have worked directly with Ralph over the past decade and feel assured that our association will fair extremely well under his leadership.”


Classified Ads---Legal

(These ads are “free” to those seeking employment
or looking to improve their position)

San Diego , CA 
Experienced in-house corporate, equipment leasing and financial services attorney seeks position as managing or transactional counsel. Willing to relocate.
Cell Phone: 760-533-4058; | Resume

Free Posting for those seeking employment in Leasing:

All “free” categories “job wanted” ads:



Loan/Lease Regulations --- Updated
“Don’t Have a License? Not Caught, You’re Lucky, so Far”

In most states, banks are not required to have a leasing license as well as manufacturers. Banks are generally exempt because they are regulated by the FDIC.

The common thread among licensing statutes is that if the entity which should otherwise have a license, is licensed by another government agency (real estate brokers is one example), then no license is required.

An expert on this who has won cases against company’s not licensed in California, notably CMC Commercial Credit, Tom McCurnin, Barton, Klugman & Oetting, Los Angeles, California told Leasing News: “A property owner can sell his property on credit without a license or without usury issues.  Its called the Time Price Doctrine or Time Price Differential.

“CIT on the other hand doesn't own the stuff and is therefore making a loan and is required to have a license. 

“A gray area might be for the leasing company to buy the stuff and have it shipped to them, and they, in turn re-ships to the customer.  May not be required to have a license.  Simple invoices and drop shipping probably would not pass muster.”

Captive Lessors are required to have a license, and all those that I checked do, such as Dell, who also sells other products than the ones they manufacture. 

And while there are financial institutions that also have a bank, such as CIT, they hold a license.

In California, those engaged in true leases, such as Mar Vista, address, do not need to be licensed, but everyone who is involved in “capital leases” with a bargain purchase option, particularly a dollar, are required to be licensed. Without it, they may not accept a commission, engage with a licensed financial institution, and may find their leases in court dismissed for lack of a license. While the fines are not very much, the clout comes in immediate suspension from doing business in California, and while a hearing may be required or filed by an attorney, they may not engage in business during this time.

“NO BROKERAGE COMMISSIONS TO UNLICENSED BROKERS. California Administrative Code Title 10 §1451.”

Commissions may not be paid to unlicensed brokers. There are companies who use other companies’ documents and therefore believe they do not need to be licensed. This may be accurate in dealing with a bank, but not with another licensed financial institution or financial institution out of state that is not licensed in California.

If you are registered by license as a broker, lender, lessor in states that require it, you do not need a city business license (in most states). Cities that require a business license, also require a business license if you work out of your residence. Many cities now are using Schedule C from tax returns, such as in San Jose, California, to catch those without a city license, and they will go back several years as well as a fine, so best to get a license now in case they check your city.

While not all states require a lender's license, many require a license to accept a deposit or advance rental. And remember, a capital lease may be considered a loan as it is with the IRS in many states. If the state requires a license, and your company is not licensed, the transaction may be subject to usury laws.

46 states do not require the lessor to notify the lessee regarding the end of the original term of the lease and can invoke an Evergreen clause, except in these states that do require notification and if not, can void the residual as well as bring on a fine or worse, depending on the number of such transactions and complaints received.

States who require notification: 
New York 
Rhode Island 
(In Illinois, Consumer law, but may affect commercial, especially a proprietorship, partnership or personal guarantee)

--Christopher Menkin

---Current Regulations
(Any up-dates or additions, please send

Alaska: Money Service License. License required to have exemption from usury rates for loans of $10,000 to $25,000, and 24% rate for $850 to $10,000

Arizona: All "advance fee loan brokers" must register annually with the state. Includes "commitment fees." Stiff penalty and on line form for a complaint for the state to investigate. Arizona Revised Statutes, sec. 06-1303-1310 (1996)
Registration process:

Arkansas: All brokers of "a loan of money, a credit card or a line of credit" may not assess or collect an advance fee. In addition, all brokers must register with the Securities Commissioner, post a surety bond of $25.000 and have a net worth of $25,000.
Arkansas Code Annotate sec. 23-39-401 (1995)

California:On September 22, 2016, California Governor Jerry Brown signed SB 777 into law, a bill that restores a de minimus exemption to the California Finance Lenders Law (CFLL) to allow a person or entity that makes one commercial loan per year to be exempt from the CFLL's licensing requirement, regardless of whether the loan is "incidental" to the business of the person relying on the exemption.

"In addition to the lending authority provided by the law, the California Finance Lenders Law provides limited brokering authority. A "broker" is defined in the law as "any person engaged in the business of negotiating or performing any act as broker in connection with loans*made by a finance lender." Brokers licensed under this law may only broker loans to lenders that hold a California Finance Lenders license."
(*any transaction that is not a true rent or meets the accounting and tax rules or is re-sold as a loan or discount or has a nominal purchase option is considered under this nomenclature. ) (2)

Delaware : License required for More Than 5 Loans Per Year.

Florida: Brokers of a "loan of money, a credit card, line of credit or related guarantee, enhancement or collateral of any nature" may not assess or collect an advance fee. 
Florida Statues, Chapter 687.14 (1992)

Georgia: A broker of "loans of money, a credit card, a line of credit or related guarantee, enhancement or collateral of any kind or nature" may not assess or collect an advance fee unless such fee is for "actual services necessary to apply for the loan." Official Code of Georgia Annotated, sec. 7- 7-1 (1992)

Idaho: No fee may be collected unless a loan is actually made. 
Idaho Code, sec. 26-2501 (1992)

Illinois: Code, 815 ILCS 175/15-5.03 Under the Act, a" loan broker" means any person who, in return for a fee from any person, promises to procure a loan for any person or assist any person in procuring a loan from any third party, or who promises to consider whether or not to make a loan to any person. 815ILCS 175/15-5- 15(a) specifically excluded from the application of the Act, however, are (1) any bank …regulated by any service loans for the Federal National Mortgage Association… (3) any insurance producer or company authorized to do business in [Illinois], (4) any person arranging financing for the sale of the person's product, (note that this exception does not apply to any person selling someone else's product and only applies to "the" person's product, implying the exception is for the owner of the product arranging for financing), (5) any person authorized to conduct business under the Residential Mortgage License Act of 1987 and (6) any person authorized to do business in [Illinois] and regulated by the Department of Financial Institutions or the Office of Banks and Real Estate. "In the event that the Act is violated by the broker, the Secretary of State is empowered by the statute to make investigations and examinations, suspend or revoke the broker's approval, subpoena witnesses, compel the production of books and records, order depositions and obtain temporary restraining orders and injunctions against the broker. In the vent that a violate is found, the Secretary of State may impose a fine in the amount of $10,000 for each violation and the broker shall be liable to any person damaged in the amount of tactual damages plus attorneys’ fees." This appears as standard language on most states.

Iowa: A broker of loans of "money or property" may not assess or collect an advance fee except for a "bona fide third-party fee" and a broker must obtain a bond or establish a trust account and file required documents with the Commissioner or Insurance.
Iowa Code, sec. 535C (19920)

Kansas : Broker is not exempt. Discounter or Lessor is exempt: " 'Creditor' means any person to whom a loan is initially payable on the face of the note or contract evidencing the loan" is exempt. Anyone who earns a fee or accept a deposit, except a bank, financial institution, discounter or lessor, must be registered.

Kentucky: Brokers of "a loan of money, a credit card, a line of credit or related guarantee, enhancement or collateral of any kind or nature" may not assess or collect an advance fee. 
Kentucky Revised Statutes Annotated, sec. 367.380 (1992)

Louisiana: A broker of loans of "money or property…whether such agreement is styled as a loan, a lease or otherwise" must obtain a surety bond or establish a trust account in the amount of $25,000. A broker may not collect an advance fee but may collect an "advance expense deposit for commercial loans" only for actual expenses incurred in obtaining the loan. Louisiana Revised Statutes Annotated, sec. 9:3574 (1993); Louisiana Revised Statutes Annotated, Sec. 51:1910 (1992)

Non-Louisiana leasing companies, with or without offices in the state, must qualify to do business in Louisiana, and are subject to payment of state and local occupational license fees. See: Collector of Revenues v Wells Fargo Leasing Corp., 393 So.2d 1255 (La. App. 1981). Common misunderstanding of Louisiana law. Motor vehicle lessors, with or without offices in Louisiana, additionally are required to be licensed by the Louisiana Motor Vehicle Commission in order to lease a motor vehicle in the state. (La. R.S. 32:1254(N)) Common misunderstanding of Louisiana law.

Maine: No license required: "the regulation of commercial loan brokers does not fall under the jurisdiction of the Maine Bureau of Consumer Credit Protection. Transactions involving two businesses are legal/contractual in nature. Therefore, disputes involving a commercial loan between a business and commercial loan provider or broker must be settled in the court system."

Maryland: Lending threshold is $6,000 or less, so now need for license if over
this dollar amount

Massachusetts: Lending threshold is $6,000 or less, so now need for license if over this dollar amount.

Minnesota: License required for loans of $100,000 or less
Money Transfer License

Mississippi: A broker or loans of money may not assess or collect an advance fee and can be fined up to $5,000 for each violation. Mississippi Code Annotated, sec. 81-19-17 (1997)

Missouri: A broker of loans of "money or property" may not assess or collect an advance fee. Missouri Revised Statues, sec. 367 300 (19920

Nebraska: A broker of loans of money may not assess or collect an advance fee. Nebraska Revised Statutes, sec. 45-189 (1993)

Nevada: Foreign Corporations Foreign corporations engaged in activities in Nevada are subject to the provisions of Chapter 80 of the Nevada Revised Statutes. Specifically, NRS 80.010 through 80.055 set forth the requirements for a foreign corporation to qualify to do business in Nevada. Of primary importance are the statutes that establish (a) the filing requirements to qualify to do business (NRS 80.010); (b) the activities in which a foreign corporation may engage that do not constitute “doing business” so as to require qualification (NRS 80.015); and (c) the penalties to which a foreign corporation will be subject for failing to comply with the qualification provisions (NRS 80.055). The penalties for failure to comply with the qualification statutes include a fine (capped at $10,000) and/or denial of the right to maintain a court action. However, failure to comply will not impair the validity of contracts entered into by a foreign corporation nor prevent such corporation from defending itself in court. Foreign LLCs Foreign LLCs engaged in activities in Nevada are subject to the provisions of Chapter 86 of the Nevada Revised Statutes, specifically NRS 86.543 through 86.549. Foreign LLCs seeking to operate in Nevada must comply with the initial filing and registration requirements in NRS 86.544, and annual filing requirements of NRS 86.5461. The LLC must also maintain certain records, such as a list of current members and managers, in accordance with NRS 86.54615. Additionally, NRS 86.5483 lists the activities which do not constitute “doing business” in Nevada for purposes of the Chapter. Foreign LLCs that fail to comply with the Chapter risk penalties similar to those facing a non-compliant foreign corporation. Those penalties are outlined in NRS 86.548.
Nevada has no usury statue.

New Hampshire
Any person making small loans, title loans, or payday loans in New Hampshire must obtain a license from the bank commissioner. N.H. Rev. State. Ann. § 399-A:2. This law does not apply to banks, trust companies, insurance companies, savings or building and loan associations, or credit unions. Id. Any person who violates any provision of this chapter shall be guilty of a misdemeanor if a natural person, or a felony if any other person. N.H. Rev. Stat. Ann § 399-A:18.

New Jersey: Brokers of "loans of money" may not assess or collect an advance fee. 
New Jersey Rev. Statutes, sec. 17:10B (1992)

Although New Jersey does not require a lessor to obtain a license to conduct a leasing business in the state, the New Jersey Corporation Business Activities Report Act requires foreign corporations to register with the state. See N.J. STAT. ANN. 14A:13-14. In particular, foreign corporations must file a Notice of Business Activities Report with New Jersey's Department of Taxation. Activities that trigger the requirement of a report include: (a) maintaining an office or other place of business in New Jersey; (b) maintaining personnel in New Jersey, even if the personnel is not regularly stationed in the state; (c) owing or maintaining real or tangible personal property directly used by the corporation in New Jersey; (d) owning or maintaining tangible and/or property in New Jersey used by others; (e) receiving payments from residents in New Jersey, or businesses located in New Jersey, that are greater than $25,000.00; (f) deriving any income from any source or sources within New Jersey; or (g) conducting or engaging in any other activity, property or interrelationships with New Jersey as may be designated by the Director of the Division of Taxation. See N.J.S.A. 14A:13-15. Corporations not required to file a report are those which either received a certificate of authority to do business, or filed a timely tax return under the Corporation Business Tax Act, or Corporation Income Tax Act. See N.J. STAT. ANN. 14A:13-16. Reports must be filed annually by April 15th.

New Mexico: New Mexico currently requires Brokers/Lessors to register for Licensing under the NM Mortgage loan Company or Loan Broker Act with the Financial Institutions Division of the State of New Mexico. Banks with Brick and Mortar within the State of New Mexico are exempt. Prior to licensing applicants must submit the Following: 
Articles of Incorporation 
Listing of all principals (including management) 
A full financial Package (to meet their minimum requirements of liquidity) 
Personal financial statements on all principals 
Disclosure of all current or past suits (civil or criminal) 
Attach a corporate surety bond 
Include a $400.00 registration fee renewable yearly

North Carolina: A broker of "loans of money or property…whether such agreement is styled as a loan, a lease or otherwise" must obtain a surety bond or establish a trust account in the amount of $25,000 and obtain a license. North Carolina General Statutes, sec. 66-106 (1992)

North Dakota:License  Required  “Money Broker’s License”. N.D. Cent. Code Ann. § § 13-04.1-02.1 and 13-04.1-01.1

Brokers may not accept an advance fee unless the broker is licensed. North Dakota Century Code, 13-04. 1-09.1 (1993) Ohio: Department of Commerce, Division of Financial Institutions

(Certificate to engage in the business of a credit services organization in accordance with the provisions of Sections 4712.01 to 4712.14 of the revised code of Ohio, subject to all the provisions thereof and to the regulations of the division.) Ohio Department of Taxation requires a "Vendor's License" under provision 5739.17 of the Revised Code ( hereby authorized to sell tangible personal property and selected services at the retail location specified below.) This also makes the lessor responsible for all taxes with penalties for not doing so.

Ohio: Ohio law provides that no person may engage in the business of lending money, credit, or choses in action in amounts of $5,000 or less, or exact, contract for, or receive, directly or indirectly, on or in connection with any such loan, any interest and charges that in the aggregate are greater than the interest and charges that the lender would be permitted to charge for a loan of money if the lender were not a licensee, without first having obtained a license from the Division of Financial Institutions. O.R.C. 1321.02. This rule is applied to any person, who by any device, subterfuge, or pretense, charges, contracts for, or receives greater interest, consideration, or charges than that authorized by such provision for any such loan or use of money or for any such loan, use, or sale of credit, or who for a fee or any manner of compensation arranges or offers to find or arrange for another person to make any such loan, use, or sale of credit. O.R.C. 1321.02.

Rhode Island: Any person who acts as a lender, loan broker, mortgage loan originator, or provides debt-management services must be licensed. R.I. Gen Laws § 19-14-2(a). The licensing requirement applies to each employee of a lender or loan broker. R.I. Gen Laws § 19-14-2(b). No lender or loan broker may permit an employee to act as a mortgage loan originator if that employee is not licensed. R.I. Gen Laws § 19-14-2(b) R.I. Gen. Laws § 19-14-2 (2012) No person engaged in the business of making or brokering loans shall accept applications from any lender, loan broker, or mortgage loan originator who is required to be licensed but is not licensed. R.I. Gen Laws § 19-14-2(d). There is an exemption from the licensing requirement for a person who makes not more than 6 loans in the state within a 12-month period. R.I. Gen Laws § 19-14.1-10. Persons lending money without a license are guilty of a misdemeanor and can be fined not more than $1,000, or imprisoned for not more than 1 year, or both; each violation constitutes a separate offense. R.I. Gen Laws § 19-14-26.

South Carolina: A broker of "a loan of money, a credit card, a line of credit or related guarantee, enhancement or collateral of any kind or nature" may not assess or collect an advance fee. South Carolina Code Annotated, sec. 34-36-10 91992)

South Dakota: Money Lending License
Required for individuals or corporations to engage in the business of lending money, including creating and holding or purchasing and acquiring any installment loan ("Capital Lease" or EFA), single pay loan, or open-end loan which may be unsecured or secured by personal property. Requires filing a surety bond application. State and national banks, bank holding companies, other federally insured financial institutions, and the subsidiaries of those institutions are exempt from licensure. In addition, SD chartered trust companies are exempt from licensure. Any individual or corporation holding this license is required to pay the bank franchise tax. 
Duration: 1 year
Cost: Application: $600
South Dakota has no usury status

Vermont: Commercial Loans
Commercial loan license would apply to EFA and "Capital Leases." Exemptions include transactions over $1 million, and brokers who do not engage in transactions more than $50,000 in one year at rates not exceeding 12 percent per annum.

Ontario, Canada: General Requirements: 1. Branch Operation If a foreign corporation wants to carry on business via a branch operation, without a Canadian corporate entity, it may have to obtain a provincial license in each province in which it intends to carry on business. Pursuant to the Ontario Extra-Provincial Corporations Act R.S.O. 1990 c. E.27 ("EPCA"), a class 3 extra-provincial corporation (a corporation that has been incorporated or continued under the laws of a jurisdiction outside Canada) is prohibited from carrying on business in Ontario without a license under the Act [s. 4(2)]. Failure to comply with this licensing requirement can lead to a maximum fine of $2,000 for a person and $25,000 for a corporation [s. 20(1)]. Directors, officers and any person acting as a representative of the corporation can be fined up to $2,000 for authorizing, permitting or acquiescing to an offence by the corporation [s. 20(2)]. For the purposes of the EPCA, an extra-provincial business is considered to be "carrying on business in Ontario" if: a. It has a resident agent, representative, warehouse, office or place where it carries on its business in Ontario; b. It holds an interest, otherwise than by way of security in real property situate in Ontario; or c. It otherwise carries on business in Ontario [s. 1(2)]. This last category is a catchall. Recent case law in the area stresses that it is very much a fact-specific analysis hinging on the extent to which business is actually conducted in Ontario. 2. Incorporation: a foreign corporation can also choose to incorporate a subsidiary, either federally or provincially. If a subsidiary is incorporated provincially in Ontario, it may have to obtain an extra-provincial license to carry on business in other provinces. An Ontario-incorporated company does not have to obtain a license to carry on business in Quebec but does have to make annual information filings. 3. Bank Act If the financing company is a bank and intends to carry on business in Canada, it must obtain appropriate approval under the Bank Act 1991 c. 46. Whether an entity will be considered a bank under the Bank Act needs to be reviewed on a case-by-case basis, as there are a number of relevant factors.



Leasing News Advisor 
Shawn Halladay

Shawn Halladay has been a frequent contributor of articles, particularly regarding accounting, changes to FASB rules, tax rulings, as well as covering several of the Equipment Leasing and Finance Association events and conferences. He joined the Leasing News Advisory Board on April 17, 2006.

Shawn Halladay
352 Denver Street, Suite 224
Salt Lake City, UT 84111

Shawn is Managing Director of Amembal & Halladay, the premier training and consulting firm serving the global equipment leasing industry.  He has authored or co-authored eight books on equipment leasing, including "A Guide to Equipment Leasing,", "A Guide to Accounting for Leases" and "The Handbook of Equipment Leasing."

His professional expertise stretches across all leasing sectors and around the globe. Based in Salt Lake City, Utah, he has served lessors throughout North and South America, Africa, Asia, and Europe, providing training in all aspects of equipment leasing. His consulting services include implementing best practices, benchmarking studies, strategic planning, leasing system selection and implementation, litigation support, accounting, and quantitative analyses.

He likes to travel as an excuse to attend soccer games, one of his passions.



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Sales Make It Happen – By Steve Chriest

Hidden Issues

You've just delivered a killer proposal to a prospective vendor you desperately want to count as a new customer for you and your company. Your company has offered the vendor special pricing and relaxed credit parameters designed to increase the percentage of his customers who qualify for financing. Your proposal, as far as you know, addresses all of the vendor's needs, and it makes perfect sense.

After you present your proposal, the vendor thanks you for your time and the work you did to develop your proposal and deliver an excellent presentation. He then tells you that his company has decided to remain a customer of their present financing source. Shocked, you thank the vendor for his time, and you make your exit, asking yourself what happened?

First, you should probably revisit your proposal and assure yourself that the deal you offered was indeed as good as you thought. If you are then still convinced that a prudent man in the same situation as the vendor wouldn't think twice about accepting your proposal, you may be the victim of a "Hidden Issue."

Hidden Issues are negative feelings or perceptions about you, your company, your industry, and maybe salespeople in general. It also could be something wholly unrelated to business. The buyer may carry some resentment toward your company for the way he was treated in the past by a former salesperson. Perhaps, during a previous time of need, your company refused to consider the type of deal you are now proposing, and the vendor is in no mood to forget the past.

A buyer who harbors resentment toward you or your company for past missteps can be tough to deal with. Worse is the buyer whose dislike of you or your company is irrational. During your presentation, for example, you may have reminded the buyer of the uncle that used to embarrass him when he was a child. As the buyer watched you present, and listened to you speak, his identification of you with his uncle made it emotionally impossible for him to want to associate with you! Irrational? Yes. And it happens to salespeople more often than you might guess.

Next week we'll discuss what you might do if you think you are or have been the victim of a Hidden Issue.

Steve Chriest is the CEO of Open Advance and author of Selling to the E-Suite, The Proven System for Reaching and Selling Senior Executives and Business Acumen 101. He recently re-named his
company from Selling-Up.  He produces video and radio blogs, as well as continues as a columnist for Leasing News.

Sales Makes It Happen Articles:



Longest Active Certified Leasing Professional
Since 1985  W. Russell (Russ) Runnalls

The Certified Leasing and Finance Professional Foundation is celebrating their 30th anniversary of the designation and 15th for the formation of the Foundation.  Originally started by the Western Association of Equipment Lessors (WAEL) in 1985, later joining support from the Eastern Association of Equipment Lessors and National Association of Equipment Leasing Brokers, this series salutes those who remain active. 

John Torbenson, then Heritage Leasing, Bellevue, WA, still active in leasing at Odyssey Equipment Financing, Scottsdale, Arizona, was president of WAEL in 1985, who set up a committee under Executive Director Randy Bauler, composed of:

Chairman Ray Carob, BEHR Leasing, Los Angeles, CA.
Leon Frick Washington Leasing Corp., Seattle, WA.
Bill Stokcard, Financial Conveyance, Salt Lake City, Utah
Jim Swander, RS Leasing, Santa Clara, CA.
Bob Jacobson, TriContinental Leasing, Sunnyvale, CA.
(WAEL Newsline, February, 1985)

Two Exam dates were set up, one for August 12 in San Francisco, and
the Other for September 10 in Seattle. "Ten candidates have qualified to take the comprehensive test, covering most aspects of equipment leasing, including history of equipment leasing, , terminology, marketing, leasing law and documentations, rates and yields and several over category.  The exams will be scored and results announced this fall...the first Certified Lease Professional (CLP) designations are scheduled for WAEL's 1986 Spring Conference in Las Vegas"
(WAEL: Newsline, August 1985)

Eight Pass the Exam

Raymond Carob
BEHR Leasing and Financial Corp
Los Angeles, CA

Peter Davis
Lease Management Services, Inc.
Menlo Park

Leon Frick
Trinity Financial Corp.
Lynnwood, WA

Hal Horowitz
BEHR Leasing and Financial Corp
Los Angeles, CA

Robert Jacobson III
Tri Continental Leasing Corp.
Sunnyvale, CA

Patrick O'Rourke
Commercial Finance Association
Capitola, CA

Russ Runnalls
Markey Lending Corp.
Thousand Oaks, CA

James Swander
RSN Equipment Leasing
Santa Clara, CA.
(WAEL Newsline, October, 1985)

Receiving his Certified Leasing Professional Plaque from Certification Committee Chairman Russ Runnalls, CLP, Charter Equipment Leasing (left) is Charles Meaker, CLP, President, Lease Financing, Inc., Tucson, Arizona.
(WAEL Newsline, 1991)



W. Russell (Russ) Runnalls, CLFP
Vice President Middle Market Financing
TEQlease Capital

Charlie Meaker
Independent Real Estate Professional
Tucson, AZ

Russ Runnalls

"In April 1978, I closed an engineering company that I owned with two other partners. My intention was to get my real estate broker’s license and open up a brokerage business. My good friend Bill Watkins questioned the wisdom of that decision and suggested that I go to work for him in the leasing business. So, with absolutely no idea what a lease was, in June of 1978 I went to work for Bill Watkins and Don Froomer in sales at Enterprise Leasing Corporation in Sherman Oaks, California.

"Leasing was not a concept that came quickly to me. However, with the patience I received from Bill, and the intense and lengthy tutoring that I got from Don, one day, about six month later, all the lights came on, I got it, and the career path for the rest of my life had been set. I stayed at Enterprise until 1982. During that time at Enterprise, I took over the sales department, eventually became EVP, met Tamara Quinn who eventually became my wife, and got quite involved in the Western Association of Equipment Lessors (WAEL).

"In January 1982, I left Enterprise and became a 40% partner in Markay Equipment Leasing, Inc. (later changed to Markay Financial Corporation when I owned 100%). My involvement in WAEL continued and intensified due to the desire of the association to establish a method of increasing and recognizing professionalism within the industry through training and testing.  This was something I was very interested in and very much in favor. The Certified Lease Professional (CLP) program and designation was established in 1985. It was determined that the first testing for the first group of CLP’s would be late 1985. At that time, the only material available for preparing for the exam was experience and a leasing manual produced by Ted Parker. I had a copy and studied for the exam.
"Since that time, I still own Markay (run by my wife), and I have worked for or consulted for Charter Leasing, Capital Network and joined TEQlease Capital in 2008. I was a contributor to the original Certified Lease Professionals’ Handbook, and in 1991 I served as the Certification Committee Chairman. I am proud to have been involved in and part of the beginning of the CLP program. It has developed over the years into the great and valuable program that it is today. Its training programs have raised the sophistication and knowledge of all the players in our industry, and it has elevated the legitimacy of, and respect for our industry. I believe the CLP designation gave me a beneficial and invaluable recognition with my peers in the leasing industry, as I do now with other CLFP's."



Letters?---We get eMail!
(News and Reactions to News)


ELFA President and CEO William G. Sutton, CAE,
to Retire at End of 2015
Chief Operating Officer Ralph Petta to Succeed Sutton in 2016

"Woody Sutton has done a fantastic job navigating the association through rough seas and Ralph Petta is the perfect choice to lead the ELFA into the future. Congratulations Ralph your new position has been well earned. I'm very happy for you! "

Edward Castagna
InPlace Auction


Former Marlin EVP & COO is Available
   George D. Pelose

"I usually like the articles you post but was the one on George Pelose necessary? I realize that the information is public but I don't think you should have put it out front. Yes, he made a lot of money but he may not be looking for a lot now, yet that article will probably scare away potential employers.

"A little more finesse on your part in the future may help."

Chet het

(The story followed up on our policy of profit from Evergreen clauses.

(There also is the issue of the officers receiving much more than the company made in profits, which could be seen by seeing what the other officers received, and has been written since 2006, all the net profit is from Evergreen Clauses, mostly copiers...

(I did take your letter to heart, and followed up with this one. Editor:)
What it May Take to Hire George D. Pelose
   Former Marlin Business Services EVP & COO


"I’ve had a number of my Utah based banks that are funding lease transactions sign up for your newsletter, and they frequently comment on articles they’ve read. It is a great source to keep in the know. Thanks for your efforts, I know that takes a lot of your time.

"Again, thanks for your efforts to bring folks who reflect negatively on our industry out in the open."

Mark C. Loosli – ASA
Loosli Management, Inc.
Washington, Utah

"Anyway the new company I am working for is questioning when “Audit Phone Calls” should be done and what the actual benefit of doing them is. I tried to dig through your old articles and really could not find anything that addressed the issue."

 Bruce L Braviroff

(Tom McCurnin has touched on this subject in recording the acceptance of equipment, but would be a good topic for Leasing 102, and looking for someone to take over this column on a more regular basis as Terry Winders, CLFP, did for many years. editor)

"Great Job, Kit !!  Thanks for all you do for us."

Bob Migliori
Boca Leasing Center
Boca Raton, Florida


"Please add me to your e-mail list for the Leasing News. I always read via LinkedIn but I tend to miss a few days here and there. I don’t know why I waited so long to get on the list. Thanks for your help and continue the good work! It’s a pleasure reading your material."


Thank You,

Christian Campbell
Priority Capital
Melrose, Massachusetts



Ninth Circuit Allows Bank to Freeze Chapter 7 Account
 ---But New York Court Sanctions Bank for Same Conduct

By Tom McCurnin
Leasing News Legal Editor

What Do Banks Do When Their Customer Files a Chapter 7 Bankruptcy Petition?  Some Banks Freeze the Accounts.  Ninth Circuit Holds That This Administrative Freeze Does Not Violate the Automatic Stay.  But New York
Bankruptcy Court Holds That Bank May Not Freeze Account,
Even for a Day.  What Should a Bank Do?  


In re Mwangi, 2014 WL 4194057 (9th Cir. 2014). 
In re Weidenbenner 2014 WL 7139994 (Bankr. S.D. NY 2014). 

Today’s cases concern the right of a depository bank to freeze accounts of its customer, upon the filing of a Chapter 7 bankruptcy by the bank’s customer.

Today I offer two cases with similar facts in which the bankruptcy court issued two different opinions—in one instance, approving of the freeze, and in the other case, actually sanctioning the bank.  It’s hard to reconcile these cases, but I’ll try at the end of this article to offer some common sense advice for bankers.  The facts and holdings of the two cases follow. 

In the Mwangi case, a bank held deposit accounts for its customer, Eric Mwangi.  Mwangi filed a Chapter 7 Bankruptcy.  The bank ran a daily computer run of its customers as against the previous day’s bankruptcy filings and discovered the bankruptcy of Mwangi.  The bank placed “an administrative pledge” on the account, effectively freezing the account until instructions were received from the Chapter 7 Trustee.  The Trustee apparently never took a position, so the funds remained frozen. 

Mwangi objected, claiming that the proceeds of the account were wages and therefore were exempt.  The Trustee again did not take a position.  The bank continued to hold the customer’s funds.

Mwangi filed a motion for an order granting his exemption.  The bank continued to hold Mwangi’s funds.  The Bankruptcy Court granted the motion, but the bank continued to hold the Mwangi’s funds. 

Mwangi filed a motion for sanctions.  The Bankruptcy Court ruled that although the bank may have held onto the funds longer than it was entitled to, the debtor suffered no damages.  Undeterred, Mwangi filed an adversary complaint for damages, and the Bankruptcy Court ruled that he had no right to possession of the funds, since it was property of the estate, and the right to the funds vested with the Trustee, not Mwangi.  Mwangi appealed to the District Court.

On appeal, the District Court had a two-pronged argument which doomed the customer’s position.  First, the District Court held that since prior to a hearing on the customer’s possible exemption to funds, the funds belonged to the Trustee, the bank could not violate the automatic stay, because the money belong to the Trustee.  After the exemption, the monies were not part of the estate, and therefore, there was no remedy for violating the automatic stay. 

On appeal to the Ninth Circuit, the Ninth Circuit affirmed for the identical reasons. 

In the Weidenbenner case, the bank customer also filed a Chapter 7 bankruptcy and also claimed an exemption to the funds, and the bank also froze the account.  The bank’s customer, objected and like Mwangi, claimed the funds were exempt.  The bank contacted the trustee, he declined to assert and interest in the funds, and the bank released the freeze the next day. 

The Bankruptcy Court held that the bank’s administrative freeze violated the automatic stay, and the bank’s claim that it was routine, was not borne out by the facts, since apparently the bank only freezes accounts subject to a bankruptcy if the amount in the account exceeds $5,000.  The bank was sanctioned $25 plus attorney fees and costs. 

How does one reconcile these two cases with almost identical facts and different holdings?  The short answer is that one cannot reconcile the two decisions.

What should be the advice of financial institution lawyers to depository institutions when faced with a Chapter 7 bankruptcy?  The answer here is probably take the road of least risk, which would not involve freezing the customer’s accounts.  There is certainly no statute which requires a depository bank to freeze the account, in absence of a direction by a Chapter 7 trustee.  If there is no requirement to freeze account, why do it? 

So what are the lessons here?

First, the issue of whether or not a depository institution should freeze depository accounts subject to a Chapter 7 bankruptcy is a high level policy decision which needs to be made by the bank’s legal department at the highest level.  While it is possible that trustee’s might assert claims to the proceeds of the account, without empirical data and case law, that fear may, or may not, be well-founded.  I don’t have the data to make recommendations to banks on this issue in general. 

Second, assuming the bank wants an opinion in a vacuum, I think my thought is that a financial institution should not automatically freeze bank accounts unless the circumstances warrant that extreme action.  While a $25 sanction is certainly not much of deterrent in this case, the financial institution may be responsible for the customer’s attorney fees and damages, which could be more, if the facts were different.  If the amount in the deposit account is significant, and there are multiple parties demanding the money (judgment creditor, trustee, or customer), then depositing the money with the court might be a viable option, but only in extreme circumstances. 

The bottom line is that administrative freezes of bank accounts subject to a bankruptcy should be carefully considered in light of these two conflicting decisions. 

Mwangi Case

MwangWeidenbenner Case

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
Visit our web site at

Previous Tom McCurnin Articles:





Tick of the Clock Grows Louder for
Small Business Lending Fund Repayments

Approximately 3.5 years since the Treasury's Small Business Lending Fund issued its first loans to banks and community development loan funds, growth in small-business lending at participating institutions has remained strong. But just one more year remains until many of the participating banks must either repay the loans or face higher dividends.

SBLF was enacted as part of the Small Business Jobs Act of 2010, which defined small-business loans as loans of up to $10 million to businesses with less than $50 million in annual revenue. The loans include commercial and industrial loans; loans secured by owner-occupied nonfarm, nonresidential real estate; agricultural production loans; and loans secured by farmland. Banks and thrifts with less than $10 billion in assets could receive investments from the Treasury in the form of preferred stock, debt or equity equivalents. Banks that received the funding then had to grow their small-business loan portfolios at a certain rate above a baseline number, or face higher dividend payments on the Treasury's investment. SBLF participants filed a supplemental report to the quarterly call report identifying the loans that qualify as small-business lending under the rules of the program.

The most recent Treasury report from Jan. 7, which contains loan growth data through Sept. 30, 2014, shows that the 229 banks remaining in the program as of Dec. 31, 2014, have grown small-business lending by $13.80 billion over the baseline. This is up from $13.19 billion as of June 30, 2014, for the 234 banks remaining as of Sept. 30, 2014. Total small-business lending at the 229 banks remaining in the program reached $44.54 billion at Sept. 30, 2014.

Median loan growth at remaining banks was 49.96% as of Sept. 30, up from 46.33% the period prior for the banks in the program at the time.

Full Report:

[Note: The 2015-16 budget submitted by President Obama calls for a significant reduction in SBA funding, on the order of 25%. As this segment is a sweet spot for EFL, and although the SBA loan amounts tend toward 7 and 8 figures, if this budget proposal passes, there could be opportunity for the EFL industry to pick up the slack. A UCC search filtering the SBA may be a good place to start. Assoc. Editor Ralph Mango]


Niche PR Firm Launches New Marketing Campaign Platform
Susan Carol Associations

Fredericksburg, VA. -- Susan Carol Associates Public Relations announced this week that it has unveiled a new online marketing platform that integrates all facets of communication—from publicity and digital marketing to social media—to increase the effectiveness of marketing campaigns in generating specific business leads for clients.

Susan Carol, APR, the agency’s owner and CEO, explained, “We want to help our clients develop and nurture business leads based on multifaceted campaigns and provide them with robust reporting.”

“Our streamlined process delivers reports and analytics that business and healthcare executives will love. It goes beyond measuring clicks and impressions to generate actionable sales data through the use of compelling content, campaign Web landing pages and an integrated process.”

With a myriad of new media channels and the changing landscape of media and marketing providers to consider, many clients are overwhelmed with choices and are unsure what strategies work best for them, Carol noted. Her agency’s blog, PR Buzz, covers this subject and as well as journalist interviews, editorial advice and social media tips.

The agency is offering complimentary consultations during February to introduce its expanded capabilities. Susan Carol Associates, composed of a variety of writers, media specialists, web developers, designers and marketing professionals, has more than 25 years of experience serving local and national clients.

Their clients have included equipment leasing and finance companies, consultancies, information technology providers, trade groups and healthcare providers. The firm also has worked with multinational companies and has deep experience in healthcare, technology and commercial finance.  The agency also has a website,, to introduce its healthcare team and the team’s portfolio of work.

Susan Carol, APR, is an accredited member of the Public Relations Society of America and the agency is a long-standing member of the Equipment Leasing and Finance Association, and recent past board director. Her firm is active in the Fredericksburg Regional Chamber of Commerce and Carol is also on the board of the Women and Girls Fund of the Community Foundation based in Fredericksburg, Va.

Susan Carol can be reached via
or @scapr on Twitter.


St. Bernard (Mix)
Columbus, Ohio  Adopt-a-Dog

Kennel: A20
ID: 72466
Age: 1.1 Year
Breed: Saint Bernard (Mix)
Adult Size: Extra Large
Weight: 101 lbs.
Sex: Male (Neutered)
Cost: $123

"Thor is a very outgoing boy! He loves attention from people and his tail is always wagging. Thor has a goofy personality and could benefit from basic obedience training. We recommend him for an owner with large dog experience. Thor is looking for a home where he would be the only dog.

"Busy Bee
I'm a naturally playful, curious, and trusting canine. Take me for a big walk every day; give me something to do. After my job's done, I'll curl up in front of the fire with you in the evenings. I'm a dog on a mission to please you and myself.

“ - Thor is a very outgoing boy! He loves attention from people and his tail is always wagging. Thor has a goofy personality and could benefit from basic obedience training. We recommend him for an owner with large dog experience. Thor is looking for a home where he would be the only dog.”

Franklin County Dog Shelter & Adoption Center
4340 Tamarack Blvd
Columbus, OH 43229
(614) 525-DOGS (3647)

Mon-Fri 11 a.m. - 7 p.m.
Sat & Sun 9 a.m. - 5 p.m.

Adopt a Pet



Attorneys Who Specialize in 
Banking, Finance, and Leasing

Birmingham, Alabama
The lawyers of Marks & Associates, P.C. have over 30 years experience in dealing with virtually every type of equipment financing and are recognized throughout the industry for prompt, practical solutions and exemplary service. They offer cost-conscious, effective lease enforcement and good counsel. 
California, National: city: Riverside 
Ellen Stern - get results, reasonable pricing; numerous industry contacts, nearly 30 yrs SoCal, 20 yrs equip.: CFL license specialist, documentation, work-outs, litigated collections, recoveries; deal-maker. 

Kenneth C. Greene

California & Nevada
Leasing and Financial consultant, active in several leasing
associations, as well as involved in music and film productioncin LA.  Mention "Leasing News" for a free consultation.
Skype: 424.235.1658
Connecticut, Southern New England: 
EVANS, FELDMAN & BOYER, LLC Collections, litigation, documentation, portfolio sales and financing, bankruptcy. We represent many of the national and local leasing companies doing business in this state. Past chairman EAEL legal committee. Competitive rates. 
Los Angeles/Santa Monica
Hemar & Associates, Attorneys at Law
Specialists in legal assistance, including debt collection, equipment recovery, litigation for 35 years. Fluent in Spanish. 
Tel: 310-829-1948 
Los Angeles, Southern CA 
Seasoned attorney representing secured creditors in auto finance and truck/equipment lease industry.  Bankruptcy and State Court litigation.   Vincent V. Frounjian (818) 990-0605or email:

Encino, California: Statewide “ELFA” 
Hemar, Rousso & Heald, LLP 30 yr excellent reputation Lessor representation commercial litigationdebt collection, and bankruptcy.
Call Stephen E. Jenkins Esq (818) 501-3800

Los Angeles, Statewide: CA.     "ELFA" Aggressive creditors rights law firm specializing in equipment leasing handling collection matters on a contingency, fixed fee or hourly cbasis. 

Los Angeles, Statewide: CA      "ELFA"
Practice limited to collections, bankruptcy and problem accounts resolution. Decades of experience. 10-lawyer firm dedicated to serving you. Call Ronald Cohn, Esq. (818)591-2121 or email. Email:   

Los Angeles- Statewide, CA
Lawyer specializing in banking and leasing issues statewide. Documents and litigation. 
Tom McCurnin, Barton, Klugman & Oetting. Voice: (213) 617-6129 
Cell:(213) 268-8291

California & National

Paul Bent – More than 35 years experience in all forms of equipment leasing, secured lending, and asset based transactions. Financial analysis, deal structuring, contract negotiations, documentation, private dispute resolution, expert witness services. 
(562) 426-1000

Trabaris, P.C.: Finance attorney with 24 years’ experience with transactional, documentation, secured financing and workouts /restructurings. 
Kevin Trabaris

Law Firm - Service, Dallas, TX. "ELFA"
Mayer regularly practices in leasing, secured financing, project development and finance and corporate finance. 
Massachusetts (collection/litigation coast to coast) 
Modern Law Group focuses its practice on collections, lease enforcement and asset recovery. For the past five years, our attorneys have helped clients recover millions of dollars. We are able to cover your needs coast to coast.

Michael J. Witt, experienced bank, finance, and leasing attorney, also conducts Portfolio Audits. Previously he was Managing Counsel, Wells Fargo & Co. (May, 2003 – September, 2008); Senior Vice President & General Counsel, Advanta Business Services (May, 1988 – June, 1997) Tel: (515) 223-2352 Cell: (515) 868-1067

National:  The OMEGA Network Group-nationwide legal representation of small and mid ticket equipment lessors-flat fee bankruptcy & replevin, contingent collection, 
billable litigation (704-969-3280)

National: Coston & Rademacher: Business attorneys serving the lease-finance industry since 1980. Transactional, documentation, corporate/finance, workouts, litigation, bankruptcy, portfolio management. Chicago-based national practice. Jim Coston, CLP (Members: ELFA, NEFA). 

St. Louis County , MO. - statewide: 
Schultz & Associates LLP., collections, negotiation, and litigation. Also register and pursue recovery on foreign judgments. Contingency and reasonable hourly rates. 
Ronald J. Eisenberg, Esq.
(636) 537-4645 x108
NJ,De,Pa: Specializing in leased equipment/secured transactions. Collections, replevins/workouts reasonable rates. Sergio Scuteri/Capehart & Scratchard, /
New York and New Jersey
Peretore & Peretore, P.C. documentation, portfolio purchase & sale, replevin, workouts, litigation, collection, bankruptcy.  Aggressive. Over 25 years

Thousand Oaks, California: 
Statewide coverage Spiwak & Iezza, LLP 20+ years experience,Representing Lessors banks in both State/ Federal Courts/ all aspects of commercial leasing litigation.
Nick Iezza 805-777-1175



News Briefs----

$1.4 Billion Recovered as Result of Sigtarp Investigations

Central Banks in India and Australia Take Steps to Lift Growth

King of ‘Hamptons Versailles’ in court over $250M palace

10 years later, Amazon celebrates Prime’s growth


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



--You May Have Missed It

More than 50,000 undocumented California immigrants get driver’s licenses


SparkPeople--Live Healthier and Longer

When to Call a Doctor for the Flu
How the Flu Can be Downright Dangerous


Winter’s Embrace
By Joanna Fuchs

When winter blows its cold breath everywhere,
And throws a chill white blanket on the ground,
The sun makes sparkling diamonds on the snow,
And trees with icy diadems are crowned.

It’s time to snuggle in for winter fun
In cozy places, maybe by a fire.
A good book and some cocoa feel just right
In flannels, sweaters, winter’s warm attire.

Winter’s gloom is comforting somehow,
As life retreats from its rushed and frantic pace.
We’re ready now to stay indoors awhile,
As we settle into winter’s calm embrace.



Sports Briefs----

Days later, fans struggle with Seahawks' Super Bowl loss

NFL suspends Browns WR Josh Gordon for year

New Falcons coach Dan Quinn: I’m so fired up to be here


California Nuts Briefs---

California met 20% water conservation goal in December

Silicon Valley powers to record job boom, but surge produces income gap

Costs in once ‘affordable’ neighborhoods show marked shift in city’s rental market

Marin Civic Center nominated as World Heritage site

Bay Area traffic woes may be gruesome, but they're the most predictable in the country


“Gimme that Wine”

California Vineyards Report Early Bud Break
Strange winter brings 'premature' bud break in late January

Vintner unveils plan for large winery outside Santa Rosa

Oregon Wines, Part 2: Strong Growth Lures New Investment
From U.S. And Global Players

Chinese now own 100 Bordeaux chateaux, as wine mania grows

Washington Merlot a love affair

Auction Napa Valley 2015 Tickets Now On Sale

Basketball's Tim Duncan Suing Terroir Founder Charles Banks

Free Mobile Wine Program

Wine Prices by vintage

US/International Wine Events

Leasing News Wine & Spirits Page


This Day in American History

     1746 - Birthday of Thaddeus Kosciusko in the Polish–Lithuanian Commonwealth, in a village that is now in Belarus.  In 1776, Kościuszko moved to North America, where he became a colonel in the Continental Army. An accomplished military architect, he designed and oversaw the construction of state-of-the-art fortifications, including those at West Point. In 1783, in recognition of his services, the Continental Congress promoted him to brigadier general.  He died at Solothurn, Switzerland on Oct 15, 1817.
    1779 - John Paul Jones takes command of Bonhomme Richard.
    1783 - Britain declared a formal cessation of hostilities with its former colonies, the United States of America.
    1787 - In an attack on Shays’ insurgents at Petersham, Massachusetts, General Benjamin Lincoln captures 150 rebels and forces Shays to flee for Vermont. By the end of the month, the uprising has been completely suppressed. In March, the Massachusetts legislature offers a pardon to all except Shays, Luke Day and two other leaders. Shays will be pardoned on 13 June, 1788. This rebellion has the effect of causing the state legislature to avoid direct taxation, to lower court costs, and to exempt household necessities and workmen’s tools from the debt process. Shays’ Rebellion is also an important factor in influencing the creation of a new federal constitution, since the states have seen how essentially powerless they are to prevent such incidents of violence.
    1787 - The first Anglican bishops of New York and Pennsylvania were consecrated in London.
    1789 - The only president to receive the unanimous vote of the presidential electors was George Washington who received all of the 69 votes cast by the election from the 10 states that voted this day. This was the first meeting of the Electoral College.  Presidential electors met and chose George Washington as America’s first President. The Federalist Party was formed by those who had supported ratification of the Constitution. Its first candidate was Washington. As President, Washington guided the new government as it moved from the concepts expressed in the Constitution into a functioning federal republic, and he firmly established many traditions and precedents which still guide how we as a nation view the presidency. After serving two terms in office, he refused to seek a third one, believing that two terms were the most that any President should serve. The Federalist, considered pro-English, enjoyed considerable success until 1800, when Thomas Jefferson, a Democratic-Republican, defeated John Adams for the presidency. Eventually the party lost its supporters and ceased to exist about 1820. Alexander Hamilton was one of the party's founders and foremost leaders. As a point of history, by April 6, the first Congress was formally organized.  By its end in 1791 the first Congress consisted of 26 senators of whom 17 supported the Washington administration and 9 were generally in opposition. In the House, the division was 38 and 26. Senators were chosen by each of the state's legislators until the 20th century when the 17th amendment called for the direct election of Senators.  A nearly unanimous vote took place in November, 1816, when James Monroe of Virginia received 231 of the 232 votes casts by the electors from 24 states. The dissenting vote was cast by William Plumer of New Hampshire.

    1801 - John Marshall was sworn in as the fourth Chief Justice of the Supreme Court.  He is the longest-serving Chief Justice in US history.
    1810 - The Cumberland Presbyterian Church was organized in Tennessee as an outgrowth of the Great Revival of 1800. Standing between Calvinism and Arminianism, the denomination holds a "medium theology" which affirms unlimited atonement, universal grace, conditional election, eternal security of the believer and salvation of all children dying in infancy.
    1822 - Free American Blacks settled Liberia, West Africa. The first group of colonists landed in Liberia and founded Monrovia, the colony's capital city, named in honor of President James Monroe.
    1824 – J.W. Goodrich introduced rubber galoshes to public.
    1825 – Ohio legislature authorized the construction of the Ohio and Erie Canal and the Miami and Erie Canal.
    1826 - “The Last of the Mohicans” by James Fennimore Cooper is published. One of the earliest distinctive American novels, the book is the second of the five-novel series called the “Leather-stocking Tales.” He continued to write about the American frontier in his third book, The Pioneer, which featured backcountry scout Natty Bumppo, known in this book as “Leather-stocking.” The character, representing goodness, purity, and simplicity, became tremendously popular, and reappeared, by popular demand, in five more novels, known collectively as the “Leather-stocking Tales.” The second book in the series, “The Last of the Mohicans”, is still widely read today. The five books span Bumppo’s life, from coming of age through approaching death.
    1841 - Plagued by poor investment decisions and an uncertain economic climate, the Bank of the United States was forced to call it quits on February 4, 1841. It was a painful end for an institution that had suffered through one of the more contentious episodes in the nation’s early financial history. Indeed, the Bank was the direct product of President Alexander Hamilton’s controversial push for a national banking system. Despite the staunch objections of Thomas Jefferson, the federal government chartered the first Bank of the United States in 1791. However, Jefferson kept up his attack, and in 1811, led his supporters in Congress in a successful attempt to block the renewal of the bank’s charter. Buoyed by a confluence of conditions, including state banks’ recent run of woes and political shifts in the House, pro-bank forces forged a new charter in 1816. Under the charge of Nicholas Biddle, the revived Bank of the U.S. enjoyed some healthy years. However, before long, the Bank faced another round of opposition, this time led by President Andrew Jackson, who fiercely opposed the notion of a central bank system. A nasty and protracted political battle ensued, as the President attempted to use his executive power to do away with the bank. Jackson eventually won out, and when the bank’s charter expired in 1836, Biddle shifted course and reestablished the Bank of the United States as a state institution based in Pennsylvania. Biddle’s bank limped on for a few more years before being finally shut down on February 4, 1841.
    1846 - The ship “Brooklyn” left New York bound for San Francisco with members of the Church of Latter-Day Saints aboard. They had been instructed to “flee Babylon.” They departed for California the same day other Saints left Nauvoo, Illinois, following clashes with settlers over polygamy. The party from Nauvoo was to meet Brannan’s group at Yerba Buena.
    1847 - Magnetic Telegraph of Maryland opened four offices in New York City for $250 a year, Philadelphia for $150, in Baltimore for $150, and Washington, DC for $50 a year to become the first Telegraph Company. At first, messages were sent by pigeons across the Hudson River from Jersey City, NJ to New York City. Later, a lead pipe enclosing a covered wire saturated with pitch was laid under the river. The rates from Baltimore to Washington were 10?? cents for the first 10 words and 1 cent for each additional minute. The rates from New York to Washington were 50 cents for the first 10 words and 5 cents for each additional word.
    1849 - The University of Wisconsin began in one room with 20 students.
    1854 - Alvin Bovay proposed the name “Republican Party,” in Ripon, WI.
    1861 - The Apache Wars began at Apache Pass, AZ when Army Lieutenant George Bascom arrested Apache Chief Cochise for raiding a ranch. Cochise escaped and declared war. The wars lasted 25 years under the leadership of Cochise and, later, Geronimo.
    1861 - The first Confederate congressional session took place, lasting until March 16. Its official title was Congress of the Confederate States.  The president of the Senate was Alexander Hamilton Stephens of Georgia, the president pro tempore was Robert Mercer Taliaferro Hunter of Virginia, and the secretary of the Senate was James H. Nash of South Carolina. The House of Representatives under the permanent constitution met in Richmond, VA, on February 18, 1861. Emmet Dixon of Georgia was elected clerk and Thomas Salem Bocock of Virginia was elected speaker. The session adjourned on April 21, 1862. The first order of business was drafting a constitution. They used the U.S. Constitution as a model, and most of it was taken verbatim. It took just four days to hammer out a tentative document to govern the new nation. The president was limited to one six-year term. Unlike the U.S. Constitution, the word “slave” was used and the institution protected in all states and any territories to be added later. Importation of slaves was prohibited, as this would alienate European nations and would detract from the profitable “internal slave trade" in the South. Other components of the constitution were designed to enhance the power of the states:  governmental money for internal improvements was banned and the president was given a line-item veto on appropriations bills. The Congress then turned its attention to selecting a president. The delegates settled on Jefferson Davis, a West Point graduate who was the U.S. Secretary of War in the 1850s and a senator from Mississippi. It was emphatic that the purpose of the confederacy was to preserve slavery. There were many rich slave owners in the south and the loss of their property would mean not only substantial loss of their assets, but future income as they would have to pay for work on their farms and other businesses. (an irony of the times, there were Negroes who were also “slave owners”.  At the turn of the century, there were slaves also owned in the North.)
Here is one county, Lowndes District in the County of Lowndes, State of Alabama, that illustrates an idea of the division of “property.”
This will substantiate that there were “free Blacks” who also owned “Black slaves.”
Slave Census of Connecticut and Washington, 1790. It is also correct many of the Northern states began to outlaw slavery in their state after the ratification of the Constitution.
But make it clear, the purpose of the Confederate States of America was to preserve slavery and was so stated in their constitution.
    1865 - Hawaii Territory established its first Board of Education.     
    1865 - Robert E. Lee was named general-in-chief of Confederate forces
    1873 - Birth of George Bennard in Youngstown, OH.  A Methodist evangelist, he penned over 300 Gospel songs during his lifetime, but is primarily remembered today for one: "The Old Rugged Cross."
    1887 - Interstate Commerce Act authorized federal regulation of railroads and created the Interstate Commerce Commission.
    1895 - In Chicago, Illinois, the Van Buren Street Bridge opened. It was the first rolling lift bridge. It consisted of two arms meeting at the center of the river. The bridge was operated by two 50 horsepower electric motors on each side of the bridge.
    1899 - The Philippine-American War began with fighting between American and Philippine revolutionary forces
    1902 - Birthday of Charles Augustus Lindbergh in Detroit. American aviator, nicknamed “Lucky Lindy,” and “The Lone Eagle”, he was the first to fly solo and nonstop over the Atlantic Ocean, New York to Paris, May 20-21, 1927. In a decade that gave us the invention of television, talking pictures, and Babe Ruth, there was no one more admired, feted, fawned over than Lindbergh.  Later, in 1932, his son was kidnapped and later found murdered in a saga that captured America.  The trial of Bruno Richard Hauptman, the alleged murderer, was called the ‘Trial of the Century.’  As the 1930s came closer to war, he became a Nazi sympathizer, accepting awards from Adolph Hitler and after the war, efforts were made to downplay his lobbying for the Nazi regime.  He became a recluse and moved to Hawaii where died at Kipahulu, Maui on Aug 27, 1974.
    1904 – Birthday of writer MacKinlay Kantor in Webster City, Iowa.  His best seller, “Andersonville” was a story about the infamous Andersonville prison of the Civil War, into which tens of thousands of Northerners were inhumanely confined under obscene conditions. Died on October 11, 1977.
    1906 – Clyde Tombaugh, American astronomer, discovered the former planet Pluto, was born in Streator, IL.  He died in 1997.
    1908 - Birthday of trumpet player Mannie Klein, New York City
    1912 – Golfer Byron Nelson was born in Waxahachie, TX.  PGA tour golfer, 1935-46.  Nelson and two other well-known golfers of the time, Ben Hogan and Sam Snead, were born within seven months of each other in 1912. Although he won many tournaments in the course of his relatively brief career, he is mostly remembered today for having won 11 consecutive tournaments and 18 total tournaments in 1945.  Nelson died in 2006.
    1913 - Birthday of Rosa Lee Parks, civil rights leader who refused to give up the seat on the bus, in Tuskegee, AL.  Born Rosa Louise McCauley, Parks was a seamstress who was active with the NAACP. On a fateful day in Montgomery, Al, in 1955, a time when African-Americans were obligated by law to ride in the back of a bus, she refused to give up her seat to a white man during a ride home from work. Parks was subsequently arrested, found guilty of disorderly conduct and fined $14. This simple act sparked the modern civil rights movement, leading to a 381-day boycott of the Montgomery bus system, lawsuits, and an eventual Supreme Court decision decreeing segregation to be unconstitutional. A hero to blacks and whites alike, Parks continued work on civil rights until her death on October 25, 2005, at Detroit, MI. She was awarded the Presidential Medal of Freedom and the Congressional Gold Medal, and she is the only American woman to lie in state at the U.S. Capitol Rotunda. Many municipalities consider Dec. 1, the day of her arrest in 1955, a holiday: Rose Parks Day.
    1914 - Pellagra is caused by a deficiency of the B vitamin, niacin. Dr. Joseph/Goldberger of the U.S. Public Health Service at the Mississippi State Penitentiary, eight miles east of Jackson, MS, began the first public finding. Twelve convicts agreed to submit to a restricted-diet test in exchange for an offer of pardon made by Governor Earl LeRoy Brewer. The test was held from February 4, 1915 to April 19, 1915. Six of the 11 convicts (one was excused) developed pellagra, confirming suspicions that pellagra is caused by the niacin deficiency. Pellagra was common, particularly in the South, until news of this experiment became known by newspapers of the time.
    1914 - Congress approved the Burnett-anti-immigration law.
    1915 – Actor William Talman, who played Los Angeles District Attorney Hamilton Burger in the long-running series “Perry Mason”, was born in Detroit.  Died 1968.
    1917 - Downtown Miami, FL, reported an all-time record low of 27 degrees.
     1921 - Birthday of author Betty Freidan, Peoria , IL , founder of the National Organization for Women (NOW), author of the “Feminine Mystique.”
    1928 - Regal Theater opens in Chicago.  Great jazz venue during the 1930's, 1940's.

    1930 - The first mosaic pavement similar to the mosaics of the ancient world was laid on Canal Street in New Orleans. The mosaic effect was secured by mixing chipped meteorite, crown point spar, and mica with the cement, then pouring the mixture into diamond-shaped brass stripped forms, sanding it down and polishing it. It was part of the project referred to as the ‘Beautification of Canal Street.”
    1932 - The third Winter Olympics opened at Lake Placid, NY, with 32 women and 274 men athletes representing 17 nations. This was the only edition of the Winter games in which athletes from the US won more medals (six gold, four silver and two bronze) than athletes from any other country. The games closed on February 15th.
    1933 - Angered by increasing farm foreclosures, members of Iowa's Farmers Holiday Association threaten to lynch banking representatives and law officials who institute foreclosure proceedings for the duration of the Depression. In April at Primghar, 600 farmers battle the sheriff and his deputies to prevent a foreclosure. During the battle many farmers take a beating. A group of them then turn up at the courthouse, drag a district judge from his chair, put a rope around his neck, and threaten to hang him unless he promises not to issue any more eviction notices. That same month, when state officers in Crawford County are beaten and driven off, the Iowa governor put three counties under martial law, and the National Guard starts rounding up farmers who are fighting foreclosures. Farmers outside Sioux City did not cooperate with the association, selling produce at the best price they could.  In addition, President Roosevelt promised farmers change and help. The crisis here also helped Roosevelt defeat Hoover.
    1934 - Birthday of piano player Wade Legge, Huntington, WA
    1936 – Comedian David Brenner was born in Philadelphia.  He died in 2014.
    1937 - Glen Gray and Casa Loma Band record Larry Clinton’s “Study in Brown.”
    1938 - Thornton Wilder's play, "Our Town", opened in New York City at the Henry Miller Theatre. The play won the writer a Pulitzer Prize.
    1938 - Guitarist/vocalist Joe Beard Birthday
    1939 - World mile record-holder, Glenn Cunningham, said in a newspaper, "running a four-minute mile is beyond human effort," adding that the best mile run will always be 4:01.66. That mark has been since been broken several times. On May 6, 1954 in Oxford, Roger Bannister became the first to break the barrier when he ran a 3:59.4 mile, a record that would last 46 days.  Jim Ryun did it on several occasions and, more recently, a time of 3:44:39 was set by Noureddine Morceli from Algeria.
    1941 – The USO was founded to provide support worldwide for US service people and their families. The United Service Organizations (USO) centers have served as a home away from home for hundreds of thousands of Americans.
    1944 - President Roosevelt authorized the Bronze Star Medal by Executive Order 9419 dated 4 February 1944, retroactive to 7 December 1941. This authorization was announced in War Department Bulletin No. 3, dated 10 February 1944. The Executive Order was amended by President Kennedy, per Executive Order 11046 dated 24 August 1962, to expand the authorization to include those serving with friendly forces.
    1945 – The Yalta Conference between British Prime Minister Churchill, US President Roosevelt and Soviet Premier Stalin opened at the Livadia Palace in the Crimea.  It was here that the spoils of war were discussed.  Roosevelt, mere months from death and suffering from ill health, acquiesced to Stalin regarding control of eastern Europe, setting the stage for the Cold War that would envelop the two countries long after the death of these two leaders.
    1945 - Birthday of tenor sax player John Stubblefield IV, Little Rock AR
    1947 - Top Hits
“For Sentimental Reasons” - Nat King Cole
“A Gal in Calico” - Johnny Mercer
“Oh, But I Do” - Margaret Whiting
“Rainbow at Midnight” - Ernest Tubb
    1947 – The 44th Vice President of the US, Dan Quayle, was born in Indianapolis.  He served as VP for President Bush, the first.  Many consider him to be the Yogi Berra of politics given his propensity for malapropisms.  "I have made good judgments in the past. I have made good judgments in the future".  When he addressed the United Negro College Fund, whose slogan is "A mind is a terrible thing to waste," he said, "You take the UNCF model that what a waste it is to lose one's mind or not to have a mind is being very wasteful. How true that is."  He also instructed grade school pupils on the spelling of potato as ‘potatoe’.
    1948 - Vincent Fournier, better known as Alice Cooper, was born in Detroit. His rock 'n' roll horror show in the 1970's featured chicken-killing and snake-fondling while singing such songs as "Refrigerator Heaven" and "I'm Eighteen." Cooper went into semi-retirement in 1977, when alcohol problems forced him to undergo hospital treatment. He later returned to performing.
    1951 - ADAMS, STANLEY T., Medal of Honor
Rank and organization: Master Sergeant (then Sfc.), U.S. Army, Company A, 19th Infantry Regiment. Place and date: Near Sesim-ni, Korea, 4 February 1951. Entered service at: Olathe, Kans. Born: 9 May 1922, DeSoto, Kans. G.O. No.: 66, 2 August 1951. Citation: M/Sgt. Adams, Company A, distinguished himself by conspicuous gallantry and intrepidity above and beyond the call of duty in action against an enemy. At approximately 0100 hours, M/Sgt. Adams' platoon, holding an outpost some 200 yards ahead of his company, came under a determined attack by an estimated 250 enemy troops. Intense small-arms, machine gun, and mortar fire from 3 sides pressed the platoon back against the main line of resistance. Observing approximately 150 hostile troops silhouetted against the skyline advancing against his platoon, M/Sgt. Adams leaped to his feet, urged his men to fix bayonets, and he, with 13 members of his platoon, charged this hostile force with indomitable courage. Within 50 yards of the enemy M/Sgt. Adams was knocked to the ground when pierced in the leg by an enemy bullet. He jumped to his feet and, ignoring his wound, continued on to close with the enemy when he was knocked down 4 times from the concussion of grenades which had bounced off his body. Shouting orders he charged the enemy positions and engaged them in hand-to-hand combat where man after man fell before his terrific onslaught with bayonet and rifle butt. After nearly an hour of vicious action M/Sgt. Adams and his comrades routed the fanatical foe, killing over 50 and forcing the remainder to withdraw. Upon receiving orders that his battalion was moving back he provided cover fire while his men withdrew. M/Sgt. Adams' superb leadership, incredible courage, and consummate devotion to duty so inspired his comrades that the enemy attack was completely thwarted, saving his battalion from possible disaster. His sustained personal bravery and indomitable fighting spirit against overwhelming odds reflect the utmost glory upon himself and uphold the finest traditions of the infantry and the military service.
    1952 - Jackie Robinson, still active with the Dodgers, was named Director of Communication for NBC, becoming the first African-American executive of a major radio-TV network.
    1953 - Dean Martin and Jerry Lewis took a dramatic turn when they starred in the film, "The Stooge", premiering at the Paramount Theatre in New York City.
    1955 - Top Hits
“Sincerely” - McGuire Sisters
“Hearts of Stone” - Fontane Sisters
“Melody of Love” - Billy Vaughn
“Let Me Go, Lover!” - Hank Snow
    1955 - The Blue Moon Boys, consisting of Elvis Presley, Scotty Moore, Bill Black and DJ Fontana, headline at an amusement park in New Orleans.
    1956 - James Brown and The Famous Flames record "Please, Please, Please" at King Studios in Cincinnati. The single would go on to become a Billboard #5 R&B hit, selling over a million copies, but nine subsequent releases would fail to live up to the success of the debut. It would take over two years for the group to return to the charts with the #1 R&B hit, "Try Me".
    1956 - A Harlem vocal group called The Cadillacs entered the Billboard Pop Chart with "Speedo", which will top out at #17.  It has since become a Doo-Wop classic.
    1956 - Elvis Presley appeared again on CBS' Dorsey Brothers Stage Show”, performing "Baby, Let's Play House" and "Tutti Frutti."
    1957 - New York's Smith-Corona Manufacturing Inc. began to sell portable electric typewriters. The first "portable" machine weighed 19 pounds! Soon, other manufacturers began offering similar models that were made of lighter weight plastics.
    1959 – The music world awoke to the news that overnight, a private plane crash near Clear Lake, IA took the lives of the pilot and singers Buddy Holly, Ritchie Valens, and J.P. ‘The Big Bopper’ Richardson, following their performances at the Winter Dance Party at the Surf Ballroom.  Following the tragic plane crash, Frankie Avalon, Jimmy Clanton, and Bobby Vee take over the headlining spots on the "Winter Dance Party" tour.
    1959 – New York Giants Hall of Fame linebacker, Lawrence Taylor, was born in Williamsburg, VA.  ” Lawrence Taylor, defensively, has had as big an impact as any player I've ever seen. He changed the way defense is played, the way pass-rushing is played, the way linebackers play and the way offenses block linebackers.”  --John Madden              
    1961 - Johnny Burnette is rushed to Hollywood's Cedars of Lebanon Hospital to undergo an emergency appendectomy. The medical crisis forces Burnette, then on the charts with "You're Sixteen," to cancel $10,000 worth of domestic engagements and postpone a European tour.
    1962 - Birthday of country singer Clint Black, was born in Long Branch, NJ.
    1962 - The first U.S. helicopter is shot down in Vietnam. It was one of 15 helicopters ferrying South Vietnamese Army troops into battle near the village of Hong My in the Mekong Delta. The first U.S. helicopter unit had arrived in South Vietnam aboard the ferry carrier USNS Core on December 11, 1961. This contingent included 33 Vertol H-21C Shawnee helicopters and 400 air and ground crewmen to operate and maintain them. Their assignment was to airlift South Vietnamese Army troops into combat.
    1963 - Top Hits
“Walk Right In” - The Rooftop Singers
“Hey Paula” - Paul & Paula
“The Night Has a Thousand Eyes” - Bobby Vee
“The Ballad of Jed Clampett” - Flatt & Scruggs
    1964 - The federal government put an end to one of the nation's more shameful bits of legislation by authorizing the Twenty-fourth Amendment, which outlawed the poll tax. The tax stemmed back to the 1880s, when members of the burgeoning Populist Party began to build a potentially potent coalition of African American and lower class white voters in the South. Across the region, planters, merchants, and industrialists moved to preserve their power and pushed for the passage of a deliberately prohibitive poll tax. The legislation, adopted by a host of Southern states, proved all too effective, as scores of African-Americans, as well as the "poorer sort" of whites, simply could not afford to pay the tax and thus lost the right to vote. However, thanks in large part to the efforts of Senator Spessard L. Holland of Florida, the once recalcitrant Congress slowly came around to the cause of outlawing the tax and passed the Twenty-fourth Amendment. On January 23, 1964, the amended was ratified by the South Dakota legislature, giving it the three-fourths majority necessary to make it the law of the land.
    1964 - United States weekly publication Newsweek was the first American magazine to carry a cover story on the Beatles.
    1965 - Martin Luther King Jr. and 770 other protesters arrested in Selma, Alabama for picketing county courthouse to end discrimination in voting rights
    1966 - Jefferson Airplane, The Mystery Trend play the Fillmore Auditorium in San Francisco. It is Bill Graham's first non-benefit show.  Also, about this time, author Ken Kesey disappears to Mexico.
    1965 – The #1 record on the charts - Righteous Brothers: “You’ve Lost that Lovin’ Feeling”
         1966 - The Rolling Stones released "19th Nervous Breakdown"
    1967 – Lunar Orbiter 3 lifted off from Cape Canaveral, FL on its mission to identify possible landing sites for the Surveyor and Apollo spacecraft.
    1968 - GONZALEZ, ALFREDO, Medal of Honor
Rank and organization: Sergeant, U.S. Marine Corps, Company A, 1st Battalion, 1st Marines, 1st Marine Division (Rein), FMF. Place and date: Near Thua Thien, Republic of Vietnam, 4 February 1968. Entered service at: San Antonio, Tex. Born: 23 May 1946, Edinburg Tex. Citation: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty while serving as platoon commander, 3d Platoon, Company A. On 31 January 1968, during the initial phase of Operation Hue City, Sgt. Gonzalez' unit was formed as a reaction force and deployed to Hue to relieve the pressure on the beleaguered city. While moving by truck convoy along Route No. 1, near the village of Lang Van Lrong, the marines received a heavy volume of enemy fire. Sgt. Gonzalez aggressively maneuvered the marines in his platoon, and directed their fire until the area was cleared of snipers. Immediately after crossing a river south of Hue, the column was again hit by intense enemy fire. One of the marines on top of a tank was wounded and fell to the ground in an exposed position. With complete disregard for his safety, Sgt. Gonzalez ran through the fire-swept area to the assistance of his injured comrade. He lifted him up and though receiving fragmentation wounds during the rescue, he carried the wounded marine to a covered position for treatment. Due to the increased volume and accuracy of enemy fire from a fortified machine gun bunker on the side of the road, the company was temporarily halted. Realizing the gravity of the situation, Sgt. Gonzalez exposed himself to the enemy fire and moved his platoon along the east side of a bordering rice paddy to a dike directly across from the bunker. Though fully aware of the danger involved, he moved to the fire-swept road and destroyed the hostile position with hand grenades. Although seriously wounded again on 3 February, he steadfastly refused medical treatment and continued to supervise his men and lead the attack. On 4 February, the enemy had again pinned the company down, inflicting heavy casualties with automatic weapons and rocket fire. Sgt. Gonzalez, utilizing a number of light antitank assault weapons, fearlessly moved from position to position firing numerous rounds at the heavily fortified enemy emplacements. He successfully knocked out a rocket position and suppressed much of the enemy fire before falling mortally wounded. The heroism, courage, and dynamic leadership displayed by Sgt. Gonzalez reflected great credit upon himself and the Marine Corps, and were in keeping with the highest traditions of the U.S. Naval Service. He gallantly gave his life for his country.
    1968 - Attorney General John Mitchell received a secret memo from Senator Strom Thurmond, in which Thurmond suggested deporting John Lennon due to his antiwar stance.
    1969 - 33-year-old John Madden became head coach of the NFL's Oakland Raiders. In his first season, Madden took the Raiders to a 12-1-1 record and earned them a spot in the AFC Conference Championship Game. Madden went on to become the youngest head coach in the modern NFL era to win 100 games in his first ten seasons.
    1969 - Owners of the 24 major league baseball clubs elected attorney Bowie Kuhn commissioner for a one-year term at a salary of $100,000. Kuhn, who succeeded William D. Eckert, became baseball's fifth commissioner. He served until 1984 when he was replaced by Peter Ueberroth.
    1969 – Yassar Arafat took over as chairman of the PLO.
    1971 - Top Hits
“Knock Three Times” - Dawn
“Lonely Days” - Bee Gees
“Rose Garden” - Lynn Anderson
“Flesh and Blood” - Johnny Cash
    1971 - The Osmonds' "One Bad Apple" album is certified gold
    1973 - Birthday of boxer Oscar de La Hoya, Los Angeles, CA.
    1974 - Patricia Hearst, the 19-year-old daughter of publishing billionaire William Randolph Hearst, is kidnapped from her Berkeley, California, apartment. Stephen Weed, Hearst's fiancé‚, was beaten unconscious by the two abductors. Soon, a ransom demand came from the Symbionese Liberation Army (SLA), a radical activist group led by Donald DeFreeze. DeFreeze had formed the SLA in 1973 after he escaped from prison. On November 6, 1973, the SLA shot and killed Marcus Foster, Oakland's superintendent of schools, with bullets laced with cyanide. Less than a month before Hearst's kidnapping, an SLA bomb-making factory was discovered by the police. The SLA instructed William Hearst to distribute $70 million in food to the poor in Oakland to have Patty released. The Black Muslims, Malcolm X's former organization, were chosen to manage the food distribution, which turned into a riot when more than 10,000 people showed up and fought for the food. However, DeFreeze and the SLA did not release Patty. The Hearst story took a strange and unexpected turn two months after the abduction, when the SLA robbed the Hibernia Bank in San Francisco. The surveillance cameras clearly showed that Patty Hearst was one of the machine gun-toting robbers. Soon after followed a taped message from the SLA in which Hearst claimed that she had voluntarily joined the SLA and was now to be known as "Tania." On May 17, 1974, police were tipped that the SLA leaders were at a Los Angeles home. With 400 police and FBI agents outside the house, a tremendous gun battle broke out. The overwhelming firepower of the police eventually caused a fire to break out. DeFreeze and five other SLA members died in the fire. However, Hearst was not inside the house. She was not found until September 1975. Patty Hearst was put on trial for armed robbery and convicted, despite her claim that she had been coerced, through repeated rape, isolation, and brainwashing, into joining the SLA. Prosecutors believed that she actually orchestrated her own kidnapping because of her prior involvement with one of the SLA members. Despite any real proof of this theory, she was convicted and sent to prison. President Carter commuted Hearst's sentence after she had served two years. Hearst is currently seeking a pardon.
    1976 - US District Court Judge John W. Oliver upheld the ruling of a baseball arbitrator Peter Seitz that had declared pitchers Andy Messersmith and Dave McNally to be free agents. The two had refused to sign contracts for 1974 as a test case and had argued that baseball's hallowed reserved clause bound them to their respective clubs, not in perpetuity but for only one year beyond the expiration of their last signed contract.  This decision was a turning point in baseball’s ability control players for their entire careers.  The free agency market is now an annual event as owners and general managers maneuver for the best players as they become free agents, or seek to lock them up with long-term contracts that now run into hundreds of millions of dollars.  One can only think of what the Ruths, Williamses, Cobbs, Aarons, Mayses, Mantles, Gibsons, etc., would command in today’s environment with their consistently superior performances.
    1976 - Kathryn Lis, Susan Kollmeye and Cynthia Snead became the first U.S. Coast Guard Academy cadets by finishing in the top one percent of the more than 10,000 men and women who competed for admission.
    1976 – A US Senate subcommittee reveals Lockheed Aircraft Corporation made payments abroad of $22 million in bribes to sell planes. Lockheed admits payments in Japan, Turkey, Italy and Holland.
    1977 - "American Bandstand" celebrates its twenty-fifth anniversary with an ABC-TV special hosted by Dick Clark. An incredible "all-star band" made up by Chuck Berry, Seals & Crofts, Gregg Allman, Junior Walker, Johnny Rivers, the Pointer Sisters, Charlie Daniels, Doc Severinsen, Les McCann, Donald Byrd, Chuck Mangione and three quarters of Booker T and the MGs. They join and jam together for a rendition of "Roll Over Beethoven."
    1977 - One of the best-selling albums of all time, Fleetwood Mac's, "Rumors" was released. The LP spent 31 weeks at the top of the US album chart on the strength of the singles, "Go Your Own Way", "Dreams", "Don't Stop" and "You Make Loving Fun", all of which hit the top 10. The album eventually sold over 18 million copies.
    1977 – A Chicago Transit Authority train rear-ended another and derailed, killing 11 and injuring 180, the worst accident in the agency's history.
    1978 - With movie theater promos showing John Travolta's character, Tony Manero walking down the street to the beat of The Bee Gees "Stayin' Alive", the tune shot to the top of the Billboard Pop chart.
    1979 - Top Hits
“Le Freak” - Chic
“Y.M.C.A.” - Village People
“Da Ya Think I'm Sexy?” - Rod Stewart
“Why Have You Left the One You Left Me For” - Crystal Gayle
    1979 - A month-long rock memorabilia auction began in San Francisco to benefit the Save the Whales campaign. Among the items sold are John Travolta’s black leather jacket from “Grease”, and a Paul Kantner guitar.
    1983 - Singer Karen Carpenter died of heart failure due to anorexia nervosa at age 33, at her parents' home in Downey, California. The singer, who had performed with her brother, Richard, would be best-remembered for her songs “(They Long to Be) Close to You” and “We've Only Just Begun”, which dominated the songs of choice for weddings throughout the '70s and '80s. The untimely death of the young, velvet-throated Grammy Award winner saddened and shocked the world. Her death shed new light on the devastating consequences of anorexia, an eating disorder brought on by compulsive dieting. At one low point in Carpenter's career, she was forced to cancel a command performance before Queen Elizabeth II of England, and a concert tour of Europe and the Orient, due to the illness. Standing five feet, four inches, she had dieted down to 90 pounds.
    1987 - Top Hits
“At This Moment” - Billy Vera & The Beaters
“Open Your Heart” - Madonna
“Land of Confusion” - Genesis
“You Still Move Me” - Dan Seals
    1987 - Sacramento Kings score only 4 1st quarter points against the Lakers; fewest in a period since introduction of 24 second shot-clock in 1954
    1987 - “Stars & Stripes”, skippered by Dennis Connor, defeated the Australian boat “Kookaburra III” for the fourth straight time to sweep the America 's Cup challenge and return the prized trophy to the US. This was the last Cup defense to be contested by 12-meter yachts. It came four years after Australia II with John Bertrand as skipper wrested the Cup from the US for the first time ever.
    1987 - Flamboyant pianist Liberace died at age 67 in his block-long palace in Palm Springs, California, officially of a brain disease, although it was a complication of AIDs. At one time, the entertainer was the highest-paid performer in Las Vegas.
    1989 - A winter storm brought heavy snow and high winds to the western U.S. Up to three feet of snow blanketed the Sierra Nevada of California, and buried parts of northeastern Washington State under three feet of snow in five days. High winds across Washington State reached 75 mph, with gusts to 105 mph.
    1991 – The National Baseball Hall of Fame board of directors voted 12-0 to bar Pete Rose, thereby enforcing the agreement Rose signed two years earlier with then-Commissioner A. Bartlett Giamatti that served Rose with lifetime ineligibility for election to the Hall for gambling on games while manager of the Cincinnati Reds.
    1996 - NBC aired the first of two parts of the mini-series “Gulliver's Travels”, starring Ted Danson as the title character. The venture, with its huge financial investment, had the potential for being a giant flop, but it was a gamble that paid off. The show was NBC's highest-rated miniseries in four years, and most critics praised its faithfulness to the Jonathan Swift tale. 
    1996 - Rob Pilatus, formerly of Milli-Vanilli, was injured when a man hit him over the head with a baseball bat in Hollywood. Pilatus was attempting to steal the man’s car.
    1997 – Simpson Guilty!!! A civil jury in Santa Monica, California found O.J. Simpson liable for the deaths of his ex-wife, Nicole Brown Simpson, and Ronald Goldman. The jury awarded $8.5 million in compensatory damages to Goldman's parents. A few days later, the jury added $25 million in punitive damages to go to Nicole Brown Simpson's estate and Goldman's father. Simpson was later ordered to give up his Heisman Trophy and nearly $500,000 in valuables, including his golf clubs, to help satisfy the judgment.
    1997 - Mario Lemieux of the Pittsburgh Penguins scored into an empty net to become the seventh member of the NHL's 600-goal club.  Pittsburgh beat the Vancouver Canucks, 6-4. Players who previously scored 600 goals are Gordie Howe, Bobby Hull, Marcel Dionne, Phil Esposito, Mike Gartner and Wayne Gretzky, who got his 600th goal in his 720th game, one more than Lemieux required.
    1998 - Microsoft founder/multi-billionaire Bill Gates gets a pie thrown in his face in Brussels, Belgium.
    2002 - On the occasion of civil-rights activist Rosa Parks' 89th birthday, Stevie Wonder sings his song "Happy Birthday" to her at the premiere of her TV-movie biography The Rosa Parks Story. The song had originally been written by Wonder to help bring about a national Martin Luther King holiday.
    2004 – Facebook was founded by fellow Harvard students Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Dustin Moskowitz, and Chris Hughes. As of June, 2014, Facebook claims 1.3 billion users.
    2007 - The Indianapolis Colts beat the Chicago Bears 29-17 at Dolphin Stadium in Super Bowl XLI. Colts QB Peyton Manning was named MVP. For the first time in Super Bowl history, the game was played in the rain, which was continuous throughout the game.
    2007 - Billy Joel sang the United States National Anthem during the Super Bowl XLI (41) pre-game show and Prince performed during the halftime festivities.
    2013 - 8 people are killed and 30 are injured after a bus collides with two vehicles and flips in Yucaipa, California

Super Bowl Champions
    2007 - Indianapolis Colts



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