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Today's Equipment Leasing Headlines
Leasing Veteran “Marathon Mike” Passes Away
Broker/Funder/Industry Lists | Features (writer's columns)
######## surrounding the article denotes it is a “press release”
and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer.
Leasing Veteran “Marathon Mike” Passes Away
“Attached obituary for Mike Dunn, Greensboro, GA. Mike was my boss at Manufacturers Hanover Leasing in the 1980’s, the biggest bank leasing company at the time, $3 billion in assets. He was a leasing pioneer with Westinghouse Credit, Manufacturers Hanover Leasing, Chrysler Capital (all in Atlanta); and, prior to his retirement, Wells Fargo Leasing in the Pacific Northwest.”
“Marathon Mike” as he was known, illustrated his passion for running and fitness – he ran over 200 marathons and half-marathons in his lifetime. He has been a member of the Marathon Maniacs for over 20 years and spent many weekends literally “on the road,” running marathons in the lower 48 states excluding Alaska and Hawaii.
Memorial Services were held Friday, February 16, 2018.
Visit us at www.mccommonsfuneralhome.com to sign the online guest register
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Seattle, WA – Will Work Remotely
Top Stories -- February 13- February 16
(1) Will Your Company be the Next Victim?
(2) California Court of Appeals Reinstates Suit Against
(3) Pictures from the Past - 1988
(4) New Hires/Promotions in the Leasing Business
(5) How General Electric became a general disappointment
(6) Amazon has partnered with Bank of America
(7) Sometimes You Make a Credit Decision
(8) Back Office Companies
(9) Sales Makes it Happen by Scott Wheeler, CLFP
(10) The Booming Airline and Transportation Business
California Seeks to Require Interest Rate Disclosure
By Tom McCurnin
Reg. Z Type Notice of Interest Rates Has Been Confined to Consumer Loans. This Would Be a Game Changer
SB 1235 (Steve Glazer, D-Sacramento)
For as long as I have been in the finance industry, interest rate disclosures have not been required for commercial loans. I was never sure whether that was because the equipment finance contracts were complicated and incapable of being reduced to a cost of funds analysis, the legislature simply wanted to let the businesses stand on their own, or this was a hide the ball tactic by the industry. Regardless, a new bill has been proposed to require disclosure of interest rates (and other regulations) for commercial loans. This will be a game changer.
Lawyers sell fear at nominal cost and sell hope at their hourly rate. While that is true and it is equally true that this bill is scary, I would earnestly expect this bill to be drastically changed once it arrives in committee. I would also expect that many trade groups will lobby against the bill’s provisions. But let’s look at the details.
First, the bill relates to Licensed California Financial Lenders. So, if the lender is exempt (Bank or Bank Subsidiary), this won’t apply to those lenders.
Second, the bill applies only to certain commercial financing loans, which are A/R financing over $5,000, cash advances of $5,000 or more, or a line of credit of $5,000 or more. For the Merchant Cash Advance industry, there is a little surprise in that paragraph for you—this law covers the purchase of future accounts receivable or a “cash advance.”
Third, the Bill requires a “Reg. Z” type disclosure of interest rates. Most readers are probably familiar with that disclosure, which is on all consumer installment contracts.
Fourth, the bill requires the lender to specify the term of the loan. This seemed obvious enough to me, but some equipment lenders still use clever end of lease options to require additional payment terms.
Fifth, the bill will require lenders to specify the repayment policies, which is presumably targets ACH disclosures. The bill will also require the lender to specify any prepayment options and penalties.
Finally, the disclosure language must be in at least 10 point type, be in the language principally used to negotiate the loan, and may not be confusing. Each of the above statements has to be initialed by the borrower. The language provision seems problematic.
What is the impact of this bill?
• First, Giving Reg. Z Disclosure For Commercial Loans Is a Game Changer. Please correct me if I am wrong, but I believe this Bill will make California the first state to require Reg. Z disclosure in a commercial context. I’m not sure this is a good thing.
• Second, Does a Commercial Borrower Have the Right to Know an Interest Rate? Previously, I have simply argued that the commercial borrower is a smart guy, has a calculator and can figure out the cost of money. Is that good policy?
• Third, How Can This Be Effectuated? Clearly, for a simple installment loan of 60 months with a 10% residual, the calculation is easy. But with many short term, working capital loans, the payments are a daily ACH process, e.g., five days a week, excluding holidays. This might be a systems problem for some lenders.
• Fourth, I Hate To Say I Predicted This, But I Did. Last month, when the Consumer Financial Protection Bureau (CFPB) abruptly reversed course and entered the universe of non-regulation, I predicted that given this regulatory vacuum, States would take on unregulated commercial lending. This is another example of why I favor Federal regulation, because we as an industry have more control over Congress than we do over 50 states, and when the Federal Government regulates an area, the States are preempted from doing so.
Tom McCurnin is a partner at Barton, Klugman & Oetting in Los Angeles, California.
Previous Tom McCurnin Articles:
Top Nine Leasing Company Websites
These are all from Alexa, February 19, 2018, Three Month Ratings. They are ranked with the lower number, meaning where they place on the USA list (the lower the rating, the more visitors. The numbers are not how many visitors, but ranking on the list.
These are not ranked by a vote of who has the best website, but the ranking in Google conducted by Alexa, an Amazon company
Alex Vasilakos contributes a bi-weekly column on website marketing from the Financial Marketing Group, where he is the Director of Marketing. He has many columns in Leasing News, such as:
How You Can Increase Visits to Make the List
Top Reputable Company Seeking
Leasing News Advisor
I was born and raised in Chicago.
In 1974, I attended Colorado State University before dropping out without graduating in 1977. I returned to Chicago and was hired for my first job selling copiers and office equipment downtown Chicago. After 2 years of excellent sales training, I made the decision that I liked Colorado much better than Chicago and I relocated to the Denver area in 1980.
In Denver, I was hired for my second and last job again selling copiers and office equipment. At this job, I continued my sales education and was introduced to leasing as a sales tool for selling copiers. After 1 year selling copiers in Denver, it became apparent to me that I wasn’t very good at taking direction or working for someone else. In 1981, with $2,000 in savings I started my first company, Business Systems Brokers. I was selling used copiers and office equipment out of my converted garage.
With only $2,000 to acquire inventory, I was forced to be a little creative. I contacted a few leasing companies in Denver to see if I could buy their repossessed copiers and office equipment. I struck gold when I was able to buy 3 full self-storage lockers full of copiers and office equipment for the $2,000 (In 1981, leasing companies didn’t have full time asset departments). This inventory kept me in business for the first year.
With my experiences selling copiers, I knew I needed to offer some type of financing to help me sell my used copiers. In contacting additional leasing companies to buy equipment I learned of a company in Florida named Denrich Leasing. Denrich Leasing was a small ticket leasing company working with brokers nationwide. I started to offer Denrich’s leasing product to my copier customers in 1982 under the company name Business Systems Brokers dba BSB Leasing (You think I could make up a name like that?).
After about a year, I was making more profit brokering leases to Denrich then I was selling used copiers. And I didn’t have to worry about providing service on the lease like I did with the copiers.
In 1995, BSB Leasing was selected by Colonial Pacific Leasing to become a service center for brokers in the Western United States under a program they developed named Pegasus. That year, BSB Leasing began working with lease brokers.
In 1998, after growing to 40 employees, offices in Denver and Cherry Hill, New Jersey and $75M in annual funding, BSB Leasing was sold to UniCapital Corporation, a public company in Miami. I became a unit President reporting to Bruce Kropschot, then a Vice-Chairman of UniCapital.
After 2 years under the ownership of UniCapital in 2000, I re-acquired BSB Leasing along with my management team of Bruce Zwillinger and Ron Gonzales.
I continue to serve as President of BSB Leasing, Inc., working primarily out of my home on Kauai while Ron Gonzales runs the day to day from our headquarters in Denver. Bruce Zwillinger semi-retired in October, 2012 but continues to work with a select group of brokers.
In 2013 BSB Leasing, Inc. continues to work with lease brokers nationwide. We offer both direct funding under (BSB Leasing, Inc. name) BSB Direct Finance name and complete syndication services through our Syndication Desk.
I also serve on the board of Orion First Financial, LLC and Mintaka Financial, LLC in Gig Harbor, WA. In addition, I have been Chief Credit Officer of Mintaka Financial, LLC since 2008.
Other companies started include: The Cruise Director, Inc. started in 1985 and sold in 1992; Info Marketing, Inc. started 1987 and sold 1990.
Dolly and I have been married now for 24 years. We have two kids now in College. Dylan, 23, is a Senior at Multnomah University in Portland, Oregon and McKenna, 20 is a Junior at Portland Bible College. We still have two at home. Matthew is turning 18 in April and finishing up his Senior year in High School before heading off to Colorado Christian University in the fall. Our youngest daughter Dru is 16 and a High School Junior.
Fairly Recent Photos
Here are photos of Don and his family from the previous biography, showing how his children are growing up fast.
Salzburg, Austria, August, 2017
Mckenna 21, Me, Dru 17, Dolly, Dylan 24 and Matthew 18
Taken in Cochem, Germany in August, 2018
Me, McKenna (21), Dru (17), Matthew (18) and Dylan (24)
Current Regulations in United States
Please see your financial attorney for a legal opinion.
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)
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.
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.
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.
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.
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.
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
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
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.
New Jersey: Brokers of "loans of money" may not assess or collect an advance fee.
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:
New York: No person or other entity shall engage in the business of making loans in the principal amount of twenty-five thousand dollars or less for any loan to an individual for personal, family, household, or investment purposes and in a principal amount of fifty thousand dollars or less for business and commercial loans, and charge, contract for, or receive a greater rate of interest than the lender would be permitted by law to charge if he were not a licensee hereunder except as authorized by this article and without first obtaining a license from the superintendent.
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 http://www.nd.gov/dfi/regulate/index.html
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
Vermont: In the past, 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. As of May 1, 2017. "Loan solicitation licensees must maintain a surety bond, include a specific disclosure in all advertisements of loans and solicitation of leads, observe record retention requirements, and file an annual report and financial statements with the Commissioner of Financial Regulation."
Full information available here:
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.
State Licensing and Usury Laws:
(Special to Leasing News)
(Leasing News requested Barry, a long time contributor to Leasing News, to update the state usury laws list. He states these are synopsis, pointing out the actual laws for each state should be view.
State usury and licensing laws differ significantly from state to state. These are just a few examples, there are other laws in other states that bear review.
In general, the factors that determine whether licensing or usury issues are likely to exist include whether leases or loans are offered, whether motor vehicles are being leased or financed, the size of the transaction and how high the proposed rate will be.
Many states also have laws affecting lease and loan brokers and the sale of off-lease motor vehicles.
California: Willful violation of the finance lender licensing laws is punishable by a fine of up to $10,000 and imprisonment for up to one year. Violators can be subject to a civil penalty of $2,500 per violation. Note that brokers are also subject to the licensing requirement and payment of referral fees is restricted. Licensed lenders are exempt from California’s usury limitation: the higher of 10% or a rate tied to the Federal Reserve rate. As Tom McCurnin points out: lenders who violate California’s usury laws are prohibited from recovering any interest and loss of previously paid interest, treble damages and punitive damages are possible.
Colorado: Charging over 45% interest is a felony and carries a minimum one year prison sentence and a fine of $1,000.00.
Florida: Charging interest at a rate exceeding 18% on loans of less than $25,000 is considered a consumer finance loan and requires a license. In addition, an interest rate exceeding 25% is a second degree misdemeanor and charging an interest rate exceeding 45% is a third degree felony.
Kentucky: Lenders making loans of $15,000 or less or to sole proprietors must have a license and is subject to a usury limitation of 4% over the Fed 90-day commercial paper rate. Failure to obtain the loan license when necessary is a misdemeanor. The statute also provides that any loan contract made in violation of this statute shall be void and the lender shall have no right to collect any principal, charges or recompense whatsoever.”
Maryland: Loans under $15,000 made to a borrower other than a corporation face a 24% usury limitation and require licensing. Failure to obtain the license is a misdemeanor subject to fines and/or imprisonment not exceeding 3 years.
Massachusetts: The criminal usury rate is 20%. Violation of the criminal usury statute is punished by imprisonment in the state prison for not more than ten years or by a fine of not more than ten thousand dollars, or by both such fine and imprisonment.
Michigan: If the borrower is a “business entity” but the lender is not a bank, credit union or similar institution, the maximum interest rate is 25% and that rate is subject to criminal penalties. Any person guilty of criminal usury may be imprisoned for up to 5 years and/or fined up to $10,000.00.
Minnesota: Loans to sole proprietors are limited to:
New Jersey: Loans for business purposes under $50,000 are limited to 16% interest (or a rate tied to federal rates, if higher). In addition to its civil usury rates New Jersey’s criminal usury rates are: (a) 50% for to loans to corporations, limited liability companies and limited liability partnerships; and (b) 30% to other borrowers Violation of criminal usury laws subjects the lending party to criminal usury liability and a fine up to $250,000.
Rhode Island: The maximum interest rate any entity may charge may not exceed the greater of 21% per annum or 9% above a published index. Violation of the usury statute can result in forfeiture of the entire principal and interest and imprisonment for not more than five years.
Tennessee: Tennessee’s usury rate is a variable published “formula rate”. The willful collection of usury is a misdemeanor punishable by up to eleven (11) months, twenty-nine (29) days in jail or a fine not to
##### Press Release ############################
GreatAmerica Completes 17th Term Securitization
(Cedar Rapids, IA) – GreatAmerica Financial Services Corporation announced the completion of its 17th term securitization of $544.8M in privately placed bonds with institutional investors, an increase of $51.7M from its last securitization one year ago.
GreatAmerica has made more than $5.6 billion in placements since 1995 and is a regular issuer of bonds on the asset-backed securities market. “GreatAmerica is distinct from many other small-ticket leasing companies in that it has continued to grow its portfolio, even during downturns in the economic cycle, while maintaining its losses and delinquencies at relatively low and historically consistent levels,” noted S&P Global’s Presale Report.
Of the 34 investors who participated, 7 were first-time buyers of GreatAmerica transactions. There was $2.7B in investor demand for the GreatAmerica bonds, which was over 5 times the amount offered. The portfolio is predominantly office equipment and telecom assets.
For additional information, please visit www.greatamerica.com
Note: Tony Golobic will be the key speaker at the Opening General Session of the March 14, 2018 National Equipment Finance Summit at the Westin Las Vegas. Online registration is available until
His Topic: "Lessons Learned from Building the Industry's Largest Privately Owned Leasing/Finance Company"
### Press Release ############################
Can you believe how handsome Beeblebrocks is! He is looking for his new forever friend. Is it you? Beeblebrocks would probably do best in a home without children. He is good with people, but is cautious around new people. He would love to continue training and would do well on the group walks at Stray Rescue on the weekends. If you think he is the perfect match for you then fill out an application!
PLEASE NOTE THAT BEEBLEBROCKS IS AT OUR PINE STREET SHELTER.
PLEASE CHECK STATUS BEFORE FILLING OUT AN APPLICATION TO MAKE SURE THERE IS NOT AN ADOPTION PENDING.
For dogs in the shelter: Fill out an application and then jump the line by:
(1) Either calling us: 314-771-6121 between 10 am and 7pm
Stray Rescue of St. Louis, Missouri
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
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This Day in History
1725 - A posse of New Hampshire volunteers ran across a band of 10 sleeping Native Americans and scalped them all. The posse entered Dover in triumph with the 10 scalps stretched on hoops and elevated on poles. A bounty of 100 pounds for each scalp (quite a bite of money in those days) was paid in Boston out of the public treasury. Individual scalps had been brought in earlier, but never this many. Posse-hunting American Indians became a popular occupation, resulting in many fleeing to Canada. The bounty was in retribution for American Indians who were killing colonists and taking their scalps as trophies.
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