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EFD Credit Officer
Walnut Creek, CA

You will underwrite equipment financing and leases of generally high complexity. Requires a BA & 5+ years of relevant experience. CLICK HERE for a detailed description and resume submission info.

Visit, for more information. Bank of the West and its subsidiaries are equal opportunity/affirmative action employers.

Friday, July 27, 2007

(2004, July 27, Leasing News ceased its text version and
began issuing only the web site html version.)


Classified Ads---Other e-Mail Posting Sites
    Leasing Business “Jumps” 2nd Q says ELFA survey
        Major NorVergence matters to hit the fan
            When do you have a “site inspection?”
Lease Police Up-Date
    Classified Ads---Help Wanted
        Optimize the Value of Bank References
            Yahoo increases internet presence
Fitch Report: Refinancing Risk to U.S. Loan Market
    GATX Corporation Reports 2007 2nd Quarter
        MicroFinancial Second Quarter
Wells Fargo to close non-prime mortgage unit
    Easy Money, Lifeblood of Economy, Is Drying Up
        Global Stock Markets Tumble
            News Briefs---
You May have Missed---
    Sports Briefs---
        "Gimme that Wine"
Calendar Events
    Snapple Real Facts
        Today's Top Event in History
This Day in American History
    Baseball Poem
            Daily Puzzle

######## surrounding the article denotes it is a “press release”


Classified Ads---Other e-Mail Posting Sites (available in many cities now, use scroll feature)

In addition to placing a free “job wanted” ad at Leasing News:

Leasing News was one of the first to promote Craig’s List. Originally it was only available in the San Francisco Bay Area. It has grown into one of the most popular for both employers and those seeking
employment. There are other sites with their own niche and specialties. Some are free, and others have inexpensive to more expensive prices, such as

You also will find employers use these sites and searching these will let you know what is available. Leasing News also recommends going to our “list” section and visiting the human resource sections of the larger lessor and funders.

To view the full listing of all “job wanted” ads at Leasing News , please go to:



Leasing Business “Jumps” Second Quarter says ELFA survey

The second quarter of 2007 saw a jump in Leasing business, according to the Equipment Leasing and Finance Association (ELFA) June MLFI_25 survey.

“The increase in new business volume in the first-half of 2007 is encouraging," declared William H. Verhelle, CEO of First American Equipment Finance in Fairport, New York who is ELFA’s Vice Chairman and whose company is an MLFI-25 survey participant.

William H. Verhelle, CEO, First American Equipment Finance

While many are reporting that the small ticket market has been flat, the middle-market and large ticket markets especially have been very healthy. The Equipment Leasing and Finance Association (ELFA) MLFI-25 reported new business volume for June totaled $9.1 billion for new commercial equipment leases and loans, compared to $6.9 billion in the prior month.

"The commercial equipment finance segment continues to expand rapidly during this period of relatively low credit losses, " Verhelle observed, adding: “As an aside, the 2.0 percent increase over the prior month in June’s credit approval ratios is a bit of a surprise, given recent industry talk about a need for possible tightening of credit approval standards in anticipation of increasing future credit losses."

Credit approval ratios increased by 2.0 percent from May to break the declining trend in the previous months.

The MLFI-25 indicated portfolio quality remained unchanged throughout the period. The trend for receivables over 90 days has been edging slightly higher in the January – April 2007 period, before leveling off in May and June. Charge-offs were slightly higher compared to the prior month, but showed a dramatic decline when compared to the year-earlier period.

The Hon. Kenneth E. Bentsen, Jr., ELFA president remarked, “The increase in borrowing to finance capital equipment investment in June as shown by MLFI-25 mirrors other data we’ve seen such as the recent Federal Reserve Board Monetary Policy Report that noted business spending on equipment and software firmed in the spring."

Hon. Kenneth E. Bentsen,Jr., ELFA President

"This data would seem to indicate that after some softening last winter, business investment in capital goods continues on an upward swing,” Bentsen added in a very optimistic tone.

Total headcount reported in the June MLFI-25 decreased over the previous month. Headcount was 11,515 in June and 11,734 in May. In June 2006, headcount was higher at 12,858 or a 10.4 percent decrease year over year.

ELFA MLFI-25 Participants

ADP Credit Corporation
Bank of America
Bank of the West
Canon Financial Services
Caterpillar Financial Services Corporation
De Lage Landen Financial Services
First American Equipment Finance
Hitachi Credit America
HP Financial Services
Irwin Financial
John Deere Credit Corporation
Key Equipment Finance
LaSalle National Leasing Corporation
Marlin Leasing Corporation
National City Commercial Corp.
RBS Asset Finance
Regions Equipment Finance
Siemens Financial Services
US Bancorp
US Express Leasing
Verizon Capital Corp
Volvo Financial Services
Wells Fargo Equipment Finance



Major NorVergence matters to hit the fan

by Christopher Menkin

The last decisive legal battle regarding NorVergence leases and its affect on the leasing/finance industry is about to begin. A win for the Federal Trade Commission will certainly not only reverberate in the courts but deal a major blow to the small ticket leasing industry.

One side says the mess was created by “greed,” and the other says once a contract is signed, the lessee must pay regardless of any other conditions, such as alleged fraud or alleged deception or alleged collusion and “we didn’t know there was service in the lease contract” despite our “hold backs” and other knowledge regarding the vendor. The lease contract should prevail regardless of any other event.

There is no win-win here. It is all bad news for the leasing/finance industry. The major players made a better business and “political” decision. Now it is a lose-lose to IFC Credit Corporation who must spend more in court and attorney fees plus time and energy and prestige.
Illinois Eastern District Judge Joan B. Gotschall requested the Federal Trade Commission respond to IFC Credit Corporation, Morton Grove, Illinois response to their the suit against the firm filled by the FTC filed on June 6,2007.
The Askounis & Borst, P.C., Chicago, Illinois, response on behalf of IFC Credit Corporation:

"The failure of NorVergence and the financial repercussions for all who did business with NorVergence, including IFC, was a most unfortunate event,”. While IFC cannot comment on the alleged business practices of NorVergence, IFC remains adamant that its conduct in dealing with NorVergence and the businesses that leased NorVergence equipment was at all times appropriate and lawful. IFC intends to vigorously defend itself against the Complaint filed by the FTC and is confident that it will prevail on the merits.”
    Askounis & Borst, P.C., Chicago, Illinois

Askounis & Borst IFC 43 pages response:

Askounis & Borst IFC 11 pages of Exhibits:
Randy Brook, Senior Attorney for the Federal Trade Commission, along with FTC attorneys Maxine R. Stansell and David M. Horn submitted a 42 pages response on July 25th to the Askounis & Borst filing.

According to Pacer, also served was attorney Peter Deeb, who Leasing News originally named the probable lead attorney due to his experience in the original bankruptcy filing by NorVergence, Inc.
He is not named in the Pacer list of attorneys, but is considered
the most informed attorney to represent a leasing company regarding
NorVergence leases.

If this proceeds to a hearing, it most likely will be Randy Brook versus Peter Deeb.

These other attorneys were also notified:
Beth Anne Alcantar
Vincent Thomas Borst
David Alexander Darcy
Debra Rose Devassy
Kenneth D. Peters
Stephen Charles Schulte,
Jeffrey Mark Wagner,
Judge Joan B. Gotschall now may decide on the papers or schedule a hearing on one or both motions.  The parties also have the ability to appeal the judge’s decision.

The Illinois Class Action suit over 500 leases as well as filings against IFC Credit by the Missouri and Texas Attorney Generals office are still on going, as well as cases in other states.

  FTC July 25 (42 page response to IFC):

Appendix A (20 pages)

Appendix B (23 pages)

Appendix C (59 pages) 

  FTC case articles
  NorVergence articles



When do you have a “site inspection?”

It is the editorial position of Leasing New that routine site inspections would have discovered many recent fraud transactions from Sterling's Equipment Finance LLC affiliate to Allserve, CyberNet, LeNature, and even NorVergence leases where funders would have realized the exact same equipment in the various size dollar transactions; to those who did not know most of the transaction was service, the site inspection would have been most revealing.

In all the above fraud cases, mostly vendor related as well as lessee deception, site inspections should have been a major part of the “due diligence" procedure.

Leasing News asked several site inspection companies "When do you recommend a site inspection be conducted? Above $25,000 only? Every third lease from a vendor or broker? Do you have any criteria for a recommendation?"

Matt McCoy, Director of Business Development, QuikTrak, Inc., Beaverton, Oregon responded:

“We’ve found that the rise in application-only transaction has had the greatest impact in determining when to inspect equipment.

“The application-only leasing product has greatly increased the speed of the credit approval process. The limit on app-only transactions has gradually increased from the $25,000 range up to and over $100,000. On the surface, the app-only process pits speed of service against the funding process. However, as the industry has shown, the vast amount of credit, payment history, and business information available through internet can be used to speed up the front-end process without sacrificing the due diligence efforts of funding transactions.

“The inspection services industry has adapted in the same way. Our turnaround times for inspections are as fast as 24 hours – if the funding source or broker plans ahead, there is ample time for an inspection, even on app-only transactions. We would strongly suggest inspections on all equipment over $50,000, and inspections on equipment valued less than $50,000 if there are any concerns beyond the credit decision.

“Basically, our recommendations can vary from company to company – sometimes the two biggest factors are the size of a company’s margin and how much risk they can stomach.

“If a funding source relies on repeat business from vendors and brokers, it is also prudent to complete spot-check inspections on every third or fourth lease from any particular vendor or broker. When you intend to enter into a long-term relationship with a vendor, we advise adding vendor inspections to the due diligence program.

“When bulk purchases and/or portfolios are purchased it is wise to sample transactions as a condition of the buy-sale agreement.”

Christopher J. Condon, A.S.A., Equipment Leasing and Finance Association Equipment Management Committee Chair 2007-2008, head of Dover Management Group:

"If the Equipment is “USED” (e.g. trucks, trailers, construction, machine tools, etc.) than it might be justified to inspect most all if not all regardless of dollar amount.

"If the Equipment is “NEW” then perhaps a matrix approach of dollar amount, number of transactions etc. can be used. By “Vendor” I assume you meant the selling party, perhaps an authorized sales party of a manufacturer. Assuming for instance it’s a machine tool dealer who represents Mazak and has a history in the industry, then yes a dollar amount and number of transaction type matrix is probably reasonable.

"The key factors are at least…

"Credit and reputation of the “VENDOR”.

"Credit and reputation of the Lessee.

"If the equipment is important to one’s decision to underwrite the transaction, if you are weighting the equipment as secondary source of repayment, then you should be doing inspections on all “USED” equipment and a lot of “NEW” equipment on a random basis."

Bruce Lurie, president of Douglas-Guardian, the oldest company in the site inspection business (plus other related matters) summed it up:

"I’m probably biased, but for the amount we charge to provide a site inspection, I think they should be part of the documentation on every transaction. Why is it any different from a credit check or other due diligence routinely performed on each transaction?"

Leasing News would like to hear from readers on their opinions regarding site inspections.



Lease Police Up-Date

“Right now we have 30 posted "alerts" and 40 Subscribers,” reports Lease Police Chief Bernie Boettigheimer, CLP, also president, Lease Police. “ Our data base has 600 files and growing daily.

“Our new marketing strategy is to put out mailings such as attached. I believe that this will reinforce everyone's impression of what is our mission here at Lease Police.”

Are you working with a Los Angeles area computer vendor? 

Is your transaction between $50,000 and $75,000?

At we have discovered a vendor providing legitimate lessees (all over 5 years in business) with working capital using non-existent and overvalued equipment.  This vendor has been listed in directory assistance for over 3 years and Secretary of State lists their age as several years old.   Their credentials appear normal, but they are anything other than harmless.  You can discover hidden trouble vendors like this using .

Do you have a suspicious vendor you would like to report?  If so, please
email .

Lease Police, Inc.
15950 North Dallas Parkway
Suite 400
Dallas, TX 75248
972-692-8091 -FAX




Leasing Industry Help Wanted

Accounts Manager

Phoenix, AZ or virtual office

Responsible for developing and managing Vendor Programs with equipment manufacturers and vendors. Click here for more detailed information.

Manufacturers' Lease Plans Inc. (MLPi) is the pioneer of short-term rental and operating lease financing, funding high technology equipment manufacturers since the 1960s. 


Collections Opportunity

Seeking an experienced collector to join its growing staff. Candidates should have a minimum 2 years of high volume collections experience, preferably in commercial vehicle lending or leasing. Competitive salary plus comprehensive package available. For consideration please fax resume in confidence to R.Z. 718-392-3933 or e-mail to

EFD Credit Officer

EFD Credit Officer
Walnut Creek, CA

You will underwrite equipment financing and leases of generally high complexity. Requires a BA & 5+ years of relevant experience. CLICK HERE for a detailed description and resume submission info.

Visit, for more information. Bank of the West and its subsidiaries are equal opportunity/affirmative action employers.

Managed Services Division

Managed Services Division
Portland, OR.

Seeking experienced professionals in our Managed Services Division.

    * Contract Accounting Specialist
    * Collections Specialist
    * Customer Service Representative

Visit, for more information. Bank of the West and its subsidiaries are equal opportunity/affirmative action employers.

Operations / Doc / Funding



Full Time Documentation / Funding Clerk

Position Available Immediately

Ground floor opportunity to join fast growing Independent Lessor. Experience required. Word and Excel skills a must.
Benefits provided. Bonus plan participation.
Salary commensurate with experience.
Please fax resume to 714-556-3765. Outline salary expectations.

Sales Representatives

Sales Reps

Due to expansion, we have openings in Richmond VA, Raleigh NC and Washington DC. To see job information, click here. Submit resume to

Since 1986, CSC Leasing has worked with well-managed companies who appreciate the value of leasing.



Survey Reveals Opportunities to Optimize the Value of Bank References

Credit Today

Fewer than one in five credit execs believes that a bank reference is more valuable than a trade reference, according to Credit Today's benchmarking survey on bank references conducted this past month. In contrast, 49 percent believe trade references are more valuable, while 32 percent feel bank and trade references are of roughly equal value.

By the same token, barely 20 percent have ever found that a bank reference helped them avoid a customer insolvency. While there is definitely a correlation between those who think bank references are at least as useful as trade references and those who have been able to avoid an insolvency due to information derived from a bank reference, it was not as high as one might think. A good number of respondents who do not think bank references are as useful as trade references also reported actionable benefits from bank

In light of the prevailing attitude that bank references are generally less valuable than trade references, it is somewhat surprising to find that most credit pros do not use any thresholds (on size of orders, for example) to determine if they should take the time to contact the bank. Just four percent use thresholds. Of the 120 respondents to the question about thresholds, three respondents indicated they set a threshold at $5,000 and two others at $50,000.

While one would have expected a greater use of thresholds, part of the answer to this seeming disconnect is that the primary means by which people get their references is by faxing the bank (92 responses) followed by the banking information supplied by credit bureau reports (72 responses). Accessing bank information by these means takes little or no additional effort. Even so, 47 respondents indicate they will also call the bank.

There are two of the other methods people use to access bank information that are worth noting: Some credit execs work through their customers to get banks to offer references, while one savvy credit pro uses his bank to contact their customer's bank for a reference. There is a long tradition behind bank-to-bank references, but its use has suffered due to the accelerating pace of commerce and automation over the last 40 years.

When customer bank information is critical, and you're analyzing a large customer, it's a good tactic to get your own banker's assistance in getting customer references.

Red Flags to Dig Deeper

One of the questions asked what "red flags" caused you to dig deeper for more bank information. Bounced checks, slowing payments, financial deterioration and insufficient financial information clearly topped the list. It is somewhat surprising that more people did not indicate low balance information, especially in terms of checking accounts. The survey also asked: "Has the information from a bank reference ever helped you avoid an insolvency?" Those who responded in the affirmative also provided us with the red flags that tipped them off.

With bank references, you need to be diligent in reading between the lines, as these examples show. With customer privacy a primary concern, banks are hesitant to reveal too much.

The survey also asked, "Do you have any procedures to ensure that bank data on your customers is up-to-date?" Of those that responded, the yearly review was most common. A fair number also indicated they reviewed both large and marginal accounts more often, typical six to nine months on large customers and three to six months on marginal accounts. Also, several respondents indicated they do a complete credit investigation on all accounts, including new applications, every two or three years. Another commonly reported trigger prompting a credit review is any time a credit line increase is requested or required.

There were also a few responses that were unique:

One credit department regularly compares customer checks with a master file of bank information. If any information has changed, such as account numbers, the bank is contacted for an updated reference.

Another credit department has programmed its system to flag any account that has been inactive for one year. Any subsequent orders then prompt a credit review before the account can be reinstated.
Lastly, we asked the respondents to recommend tips for getting bank personnel to talk more openly. A large majority of respondents said that it is essential to get customer approval. They indicate that by having the customer contact their banker prior to your call or by having a signed authorization from your customer, the bank is more likely to cooperate.

It was also strongly recommended that you have a specific person to contact; otherwise it would be like taking a shot in the dark, especially with larger banks. More than a few also recommended establishing a report with the loan officer when that is possible. Another good suggestion was to advise your banking contacts up front of your own privacy policies.

When making written requests, it was suggested you use an RMA form. RMA (formerly Robert Morris Associates) is a banking association that has worked in conjunction with NACM to establish standards for the exchange of reference data. Obviously, there remains a place for bank references in every credit pros arsenal. As this survey has revealed, there is quite a lot that can be done to make bank references as potent a tool as possible.

Bank Reference Red Flags
Low account balances in proportion to the size of customer or credit limit needed
High lending balances in proportion to size of customer and depository accounts
Low lines of credit that are fully secured by the bank
Confirmed history of overdrafts or negative account balances
Carefully chosen words by the bank officer providing the reference
Evidence of compliance issues relative to loan covenants
Expiring credit lines or loans without confirmation of renewal or replacement
Recent closure of credit lines

copyright 2007 Credit Today, reprinted with permission:"



Yahoo increases internet presence

Yahoo, for the second consecutive month, has regained search engine market share at the direct expense of Google, according to

"Yahoo climbed back to 12.16% market share, and the last time they had that much share was back in September of 2006," reported.

Google's US search market share has dropped to 51.53%. Net Applications has not recorded two consecutive months of search engine market share losses for Google until now.

"It's intriguing to note that the comeback in Yahoo's market share coincides with the return of Jerry Yang as CEO," reported. "There may be no correlation at all, but if Yahoo keeps surging back, Yang may join Steve Jobs in the new 'hero' class of CEO. At the same time, Yahoo has promoted Susan Decker to President. Decker headed Yahoo's Advertiser and Publisher Group, and is responsible with Yang for Yahoo's strategic direction. They seem to have their strategic priorities lined up properly after several years of missteps."


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

Fitch Report: Leveraged Issuance Boom Shifts Refinancing Risk to U.S. Loan Market

Fitch Ratings-New York-July 26, 2007: The volume of U.S. leveraged loans coming due over the next several years towers over the volume of bonds maturing, accentuating the need for speculative grade borrowers to continue to roll over their maturing loans, according to a Fitch Ratings' study published Thursday.

To estimate the extent of leveraged borrowers' refinancing needs in coming years, Fitch analyzed the maturity schedule of $1.3 trillion in outstanding leveraged loans, and $650 billion in outstanding high yield bonds. More than a third of leveraged loans totaling $473 billion will mature between 2008 and 2010 and more than half, or $680 billion, will mature between 2008 and 2011, causing the bulk of near-term funding pressures. This compares to just $104 billion in high yield bonds maturing between 2008 and 2010 and $180 billion maturing between 2008 and 2011. Furthermore, about 50% of the leveraged loan debt coming due between 2008 and 2010 is rated 'B+' or below, and about 25% is rated single-B and below.

'Compounding the risk is the uncertainty of how non-traditional investors will react in a credit market downturn,' said William May, Senior Director, Fitch Ratings. 'The sentiment of non-bank investors will be extremely critical as borrowers attempt to roll over their loan debt upon maturity.'

Non-bank institutional investors – mainly collateralized loan obligations (CLOs) and hedge funds – have become the driving source of liquidity in the leveraged loan market, with banks acting more as 'arrangers' rather than the 'ultimate lenders' in the loan market. More recently, banks have signaled a pullback from the easy credit standards of recent years.

Robust liquidity, tight spreads and weakened covenant protections have pushed leveraged loan issuance to record levels. Leveraged loan issuance was $612 billion in 2006, up 22% versus 2005 and 86% versus 2003. While refinancing activity has played a significant role in this, Fitch research indicates that the recent growth in total high yield debt has been driven largely by incremental leveraged loan obligations. In addition, the aggressiveness of new deals coming to market has been at historic highs.

Of note, senior fixed income professionals recently surveyed by Fitch, together with the Fixed Income Forum, expressed anxiety over trends in the leveraged loan market.

On an industry-by-industry comparison, the U.S. telecom sector has the largest amount of leveraged loans coming due rated between 2008 and 2010 - $69.2 billion. The telecom industry was followed by the utilities and health care industries, respectively. A full breakdown of each industry's leveraged loan debt due can be found in the report.

The full report 'Loan Issuance Boom Shifts Refinancing Risk Strongly to Loan Market,' can be found on Fitch's web site at under the Credit Market Research link.

The June Fitch Ratings/Fixed Income Forum Survey of Senior Investors is titled

'Senior Credit Investors Anxious Over Deal Trends and Event Risk, Less Concerned About

Economic Activity' can also be found on Fitch's web site at under the Credit Market Research link.


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

GATX Corporation Reports 2007 Second Quarter Results

CHICAGO---GATX Corporation (NYSE:GMT) yesterday reported 2007 second quarter results.

In the 2007 second quarter, net income from continuing operations was $43.5 million or $.79 per diluted share, compared with net income of $41.0 million or $.71 per diluted share in the second quarter of 2006.

Mr. Kenney concluded, "We are capitalizing on high asset valuations by selling certain targeted assets, a step that is expected to reduce future volatility, strengthen our portfolio quality, and lead to higher remarketing income in 2007. Based on this expected increase in remarketing income, we now expect 2007 full-year earnings to be at the high end of the $2.90-$3.10 per diluted share range previously announced."

In 2006, GATX sold the majority of its aircraft leasing business to Macquarie Aircraft Leasing Limited (MALL). As a result, the aircraft leasing segment is reported as discontinued operations and prior periods have been restated to conform to the current presentation.

Operational highlights for the 2007 second quarter include:

-- Utilization of Rail's North American fleet was 98% for the
second quarter. On a basket of common car types, lease renewal
rates increased 14% over expiring rates with an average
renewal term of 70 months.

-- Specialty continued to experience strong performance in its
marine joint ventures and investment opportunities increased
during the quarter.

-- Year-to-date investment volume totaled $240 million, including
approximately $191 million in Rail, representing a mix of both
new and used railcar investments in North America and Europe.

"Market conditions in rail have been generally positive in the largest portion of our fleet, general service tank cars serving the chemical and petroleum sectors," said Brian A. Kenney, president and chief executive officer. "Weakness continues in certain freight car types, such as coal cars and railcars serving construction-related industries. There is also a modest oversupply of cars serving the ethanol market, as the pace of ethanol plant construction has not supported speculative orders placed by others for this car type. While this softness should have little impact on our 2007 results, we are monitoring these developments and the potential impact on longer-term results.

"Income from the marine joint ventures in Specialty remains strong as charter rates continue to increase. While weather delays hampered the start of ASC's 2007 sailing season, demand on the Great Lakes remains high, vessels are fully utilized, and we are realizing benefits from the acquisition of the six-vessel fleet completed in June 2006.

To see the full press release, please go here:


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

MicroFinancial Incorporated Announces Second Quarter 2007 Results

WOBURN, Mass., -- MicroFinancial Incorporated (AMEX-MFI), a financial intermediary specializing in vendor-based leasing and finance programs for microticket transactions, yesterday announced financial results for the second quarter and the six months ended June 30, 2007.

Net income for the second quarter of 2007 was $1.4 million.

Revenue in the second quarter of 2007 was $7.5 million compared to $8.2 million in the second quarter of 2006 as expected declines in the rental income during the quarter were partially offset by growth in the leasing revenues associated with our originations. Revenue from leases was $2.7 million, up $2.0 million from the same period last year and rental income was $3.5 million, down $2.1 million from June 30, 2006. Other revenue components contributed $1.3 million for the current quarter, down $0.5 million from the same period last year.

Richard Latour, President and Chief Executive Officer said, "I am pleased with our continued progress in growing the business. In the second quarter of 2007, new contract originations improved to $12.4 million, an increase of $9.2 million from the second quarter of 2006. In addition we had our largest quarter for vendor approvals at 208 new vendors bringing the total vendor count to approximately 1,550. We also processed over 9,300 applications, an increase of over 5,400 applications as compared to the same period last year."

Total operating expenses for the current quarter declined 28.4% to $5.2 million from $7.3 million in the second quarter of 2006. The second quarter 2007 provision for credit losses increased slightly to $1.7 million from $1.6 million in the second quarter of 2006 primarily due to the increase in lease receivables, while net charge-offs declined to $1.6 million from $2.3 million in the comparable period of 2006. Sequentially, amounts greater than 31 days delinquent as of June 30, 2007 decreased to $3.9 million from $5.4 million as of March 31, 2007. Selling, general and administrative expenses decreased 19.6% to $3.2 million from $3.9 million in the second quarter of last year primarily due to reductions in collection related and legal expenses. Interest expense declined 58.1% to $13,000, as a result of lower debt balances. Depreciation and amortization expense declined 79.3% to $0.3 million for the quarter, due to a decline in the number of rental and service contracts as well as the fact that a greater percentage of these assets are fully depreciated.

Cash received from customers in the second quarter was $10.1 million compared to $9.6 million during the same period in 2006. New originations in the quarter increased by 22% to $12.4 million for the second quarter 2007, compared to the first quarter 2007.

For the six months ended June 30, 2007, net income was $2.7 million versus net income of $1.3 million for the same period last year. Net income per diluted share year to date was $0.19 based on 14,101,436 shares versus $0.09 for the same period in 2006.

Year to date revenues for the six months ended June 30, 2007 decreased 12.0% to $15.0 million compared to $17.1 million during the same period in 2006. Revenue from leases was $4.7 million, up $3.3 million from the same period last year and rental income was $7.4 million, down $3.9 million from June 30, 2006. Other revenue components contributed $2.9 million, down $1.5 million from the same period last year. New contract originations year to date June 30, 2007 were $22.5 million versus $6.1 million through the same period last year.

To View the full press release with financial statements, please go here:


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

News Briefs----

Wells Fargo to close non-prime mortgage unit

Easy Money, Lifeblood of Economy, Is Drying Up

Global Stock Markets Tumble

New Home Sales Down Substantially

Boeing braces for a 787 nail-biter

Keith Richards gathers $7.3m for Rolling Stones biography



You May have Missed---

Nimoy to Reprise Spock Role in Trek Film



Sports Briefs----

Legacies linked, Bonds and Selig are warily apart

Vick's NFL career in jeopardy

Vick Pleads Innocent in Dogfighting Case



“Gimme that Wine”

Do red wines really go with a screw-cap?

Wine Industry's First Online Tool to Buy Oregon Wine and Plan Trip to Wine Country

International Survey reveals all wine habits

What hath Sattui wrought?

Wine Prices by vintage
US/International Wine Events
Winery Atlas
Leasing News Wine & Spirits Page
The London International Vintners Exchange (Liv-ex) is an electronic exchange for fine wine.



Calendar Events This Day

National Korean War Veterans Armistice Day

System Administrator Appreciation Day

Take Your Pants for a Walk Day

Take Your Houseplants for a Walk Day
Walking your plants around the neighborhood enables them to know their environment, thereby providing them with a sense of knowing, brining on wellness.

Walk of Stilts Day
A day to walk on stilts, providing a chance to develop self-confidence through mastery of balance an coordination. A chance to enjoy the challenge of childhood no matter your age.

Saint feast Days



90% of all garlic consumed in the U.S. comes from Gilroy, CA.

27,28,29 July is the Garlic Festival in Gilroy, California



Today's Top Event in History

1942 - In New York City, Peggy Lee recorded her first hit record. With instrumentals provided the Benny Goodman band, Peggy sang "Why Don’t You Do Right" for Columbia Records.


This Day in American History

    1686-Birthday of Mary Peck Butterworth, Colonial Counterfeiter. In 1722 Mary Peck Butterworth's husband bought her a huge, fancy house that aroused the suspicion of authorities. (She couldn't buy the house herself because the law forbade married women owning anything on their own. It all belonged to the husband.) Even though the couple was investigated by the authorities - and two of their "gang" turned state's evidence - there were no convictions. Seems that Mrs. Butterworth developed a currency-counterfeiting process that used cloth that was immediately burned instead using the usual counterfeiting tell-tale copper plates. The cloth "plate" evidence went up in flames after each use so the prosecution's evidence disappeared in smoke. According to the evidence given against her by her relatives who assisted her, she used a hot iron to press a piece of starched cotton over a bill to transfer the pattern. Using the same method she transferred the pattern to paper from the cloth. Then with a series of quills, she inked the note by hand into an almost perfect note. She organized a true kitchen-cottage industry, using her family including her brother and his wife who turned state's evidence. She was said to be a tough task boss. She got so good at the business that she expanded her operation into wholesaling bogus bills at half price.
Members of the organization were arrested, but all were acquitted. It is said she gave up counterfeiting after that.
    1775—Dr. Benjamin Church was named Surgeon general of the Continental Army. He was a traitor and spy who was caught passing information and jailed on November 7,1775. He had passed on information regarding several battles, including the Battle of Lexington, and was privy to troop movement, strength,
and strategy. On a second attempt on sending information to the enemy via a lady friend, his letter was intercepted and the decoded. General Washington conducted the court marshal. Church was sentenced to a life term in prison. He began his incarceration, but ill health enabled him to return to Boston where he was paroled. Church received permission to immigrate to the West Indies; the ship that provided his passage was lost at sea. It was later learned with certainty that Church had been in the pay of General Gage and had furnished the British with a detailed description of colonial military plans and equipment several weeks before Lexington and Concord.
    1777- The beautiful Jane McCrea was murdered and scalped for her long blond hair supposedly by Indians allied with the British General Burgoyne. Subsequent investigation indicated she might have been killed by a stray shot and not by Indians. The scalping horrified everyone and helped unite the colonies against British rule. A monument now marks the spot where she was originally buried.
    1777 -- The Marquis of Lafayette arrives in New England to help fight the British.
    1789-Department of State founded. The first presidential cabinet department, called the Department of Foreign Affairs, was established by the Congress. Later the name was changed to Department of State.
    1806 - Attempting to stop a band of young Blackfoot Indians from stealing his horses, Meriwether Lewis shoots an Indian in the stomach.Lewis awoke to the shouts of one his men--the Indians were attempting to steal their rifles and horses. Lewis sped after two Indians who were running off with several of the horses, calling out for them to stop or he would shoot. One Indian, armed with an old British musket, turned toward Lewis. Apparently fearing that thee Indian was about to shoot, Lewis fired first and hit him in the stomach. The Indians retreated, and the men quickly gathered their horses. Lewis then learned that one of his men had also fatally stabbed another of the Blackfoot. Fearing the survivors would soon return with reinforcements, Lewis and his men immediately broke camp. They rode south quickly and managed to escape any retribution from the Blackfoot. Lewis' diplomatic mission, however, had turned into a debacle. By killing at least one Indian, and probably two, Lewis had guaranteed that the already hostile Blackfoot would be unlikely to deal peacefully with Americans in the future.
    1816 - US troops destroyed the Seminole Fort Apalachicola, to punish the Indians for harboring runaway slaves.
    1841- Linda Richards birthday - U.S. nurse and educator. She received the first diploma from the first school of nursing opened in the U.S. She went on to establish training schools for nurses as well as directing several hospitals.
She retired in 1911 at age 70 when she wrote her autobiography, “Reminiscences of Linda Richards.”
    1853---Birthday of Architect Cyrus Lazelle Warner Eidlitz.
    1857-Birthday of Jose Celso Barbosa-Puerto Rican physician and patriot, born at Bayamon, Puerto Rico. His birthday is a holiday in Puerto Rico. He died at San Juan, Puerto Rico, Sept 21, 1921.
    1866-Atlantic Telegraph cable successfully completed.
    1868-Uniforms for mail carriers were authorized by Congress. Before this date, mail carriers could dress in any manner.
    1878---Birthday of Genevieve Rose Cline - first woman appointed a U.S. federal judge. GRC got her law degree at 44. President Harding appointed her as an appraiser of merchandise shipped through customs in Cleveland, Ohio. In spite of strong objections because she was a woman, she won confirmation in the U.S. Senate as Judge in the Customs Court and served in that capacity 1928-1953.
    1898 - Marines from the USS Dixie were the first to raise the American flag over Puerto Rico.
    1905-Birthday of Leo Durocher, born at West Springfield, MA. He began his major league baseball career with the New York Yankees in 1925. He also played for the St. Louis Cardinals' "Gashouse Gang" and the Brooklyn Dodgers, where he first served as player-manager in 1939. It was during that season that he used the phrase "Nice guys finish last," which would become his trademark. As a manager, he guided the New York Giants into two World Series. Following a five-year period away from baseball, he resurfaced as a coach with the Los Angeles Dodgers in 1961. In 1966 he signed with the Chicago Cubs as manager. After leaving the Cubs, he spent one season with the Houston Astros, then retired from baseball in 1973. He died Oct 7, 1991, at Palm Springs, CA.
    1909 - The record for the longest airplane flight was set by Orville Wright who was testing the United States Army’s first airplane. Wright kept the craft aloft for 1 hour, 12 minutes and 40 seconds over Fort Myer, Virginia.
    1921- Dr. Frederick Banting and his assistant at the University of Toronto Medical School, Charles Best, gave insulin to a dog whose pancreas had been removed. In 1922 insulin was first administered to a diabetic, a 14 year old boy.
    1921- Baseball fan Reuben Berman brought suit in New York County Supreme Court against the New York Giants, alleging that on May 16 the Giants had “wrongfully and unlawfully imprisoned and detained” him and threatened him with arrest. Berman further alleged that he was “greatly humiliated before a large crowd of people…and thereby was caused mental and bodily distress and was thereby greatly injured in his character and reputation and in his physical health” Berman’s crime? He refused to return a foul ball he had caught to a stadium attendant. Allowing fans to keep foul balls was not year a general practice, but the court awarded Berman $100 and thus fans were allowed to keep a caught foul ball.
Thank you, Reuben Berman.
    1922—Birthday of Julius “Papa Cairo” Lamperez, born New Orleans. Louisiana Hall of Fame member played steel guitar with Cajun and Western swing bands for 64 years; the New Orleans native sang on Chuck Guillory & His Rhythm Boys' 1949 hit, "Big Texas"; he later toured with Ernest Tubb, and recorded with Harry Choates and Chuck Guillory. died 11/13/99; age 79
    1933- By the summer of 1933, the Great Depression had long since spread from the shores of the United States to vast chunks of Europe. Earlier in the decade, the US's decision to raise revenues by adopting hefty tariffs had shattered Europe's fragile finances. Awash in red ink, Europe's leaders imposed their own stringent set of duties on US goods, causing international trade to grind to a halt and both the US and Europe to sink further into the depths of the Depression.
    1937—Birthday of vibe player Charlie Shoemake Houston TX,,1131096,00.html
    1940 - Bugs Bunny made his official debut in the Warner Bros. animated cartoon "A Wild Hare." Three years later, Bugs would be made an honorary Corporal of the US Marine Corps after ther release of the short Super Rabbit in which he is portrayed as a parody of Superman. Bugs abandons his colorful costume, faces the camera, and proclaims that "This looks like a job for a real Superman!" Then he reappears from the phone booth wearing a uniform of the United States Marine Corps. His former antagonists snap to attention and salute Bugs as he marches into the horizon singing the Marine Corps Hymn.
    1942 - In New York City, Peggy Lee recorded her first hit record. With instrumentals provided the Benny Goodman band, Peggy sang "Why Don’t You Do Right" for Columbia Records.
    1943--*PETRARCA, FRANK J. Medal of Honor
Rank and organization: Private First Class, U.S. Army, Medical Detachment, 145th Infantry, 37th Infantry Division. Place and date: At Horseshoe Hill, New Georgia, Solomon Islands, 27 July 1943. Entered service at: Cleveland, Ohio. Birth: Cleveland, Ohio. G.O. No.: 86, 23 December 1943. Citation: For conspicuous gallantry and intrepidity in action above and beyond the call of duty. Pfc. Petrarca advanced with the leading troop element to within 100 yards of the enemy fortifications where mortar and small-arms fire caused a number of casualties. Singling out the most seriously wounded, he worked his way to the aid of Pfc. Scott, Iying within 75 yards of the enemy, whose wounds were so serious that he could not even be moved out of the direct line of fire Pfc Petrarca fearlessly administered first aid to Pfc. Scott and 2 other soldiers and shielded the former until his death. On 29 July 1943, Pfc. Petrarca. during an intense mortar barrage, went to the aid of his sergeant who had been partly buried in a foxhole under the debris of a shell explosion, dug him out, restored him to consciousness and caused his evacuation. On 31 July 1943 and against the warning of a fellow soldier, he went to the aid of a mortar fragment casualty where his path over the crest of a hill exposed him to enemy observation from only 20 yards distance. A target for intense knee mortar and automatic fire, he resolutely worked his way to within 2 yards of his objective where he was mortally wounded by hostile mortar fire. Even on the threshold of death he continued to display valor and contempt for the foe, raising himself to his knees, this intrepid soldier shouted defiance at the enemy, made a last attempt to reach his wounded comrade and fell in glorious death.
    1943 - On a whim, and flying a single engine AT-6, Lieutenant Ralph O'Hair and Colonel Duckworth were the first to fly into a hurricane. It started regular Air Force flights into hurricanes
    1943-Birthday of singer Mary Love, born Mary Ann Varney, Sacramento, CA,_mary.html
    1948-Birthday of skater/television personality Peggy Flemming, born San Jose, California. She won the national icre skating championships five straight years and won the 1968 Olympic singles title in the most spectacular performance of a woman on ice to that date. She included leaps and maneuvers that no woman had ever done before in competition. She'd spent nearly 20,000 hours in years before age 10 to age 20 to realize her dream, but the victory-memory will always be terribly bruised because her father died of a heart attack only minutes after her victory. Today she is tv commentator and a wine maker along with her husband in Los Gatos, California.
    1949 - Singer Maureen McGovern is born in Youngstown, Ohio. Her biggest hit is the million-selling No. 1 song ``The Morning After.''
    1953 - Air Force Captain Ralph S. Parr, 4th Fighter-Interceptor Wing, achieved the last air victory of the Korean War when he destroyed an Il-12 transport plane. In addition, the victory qualified him as the 11th and last double ace of the war, with a total of 10 kills.
    1953- The Armistice agreement ending war that had lasted three years and 32 days was signed at Panmunjom, Korea
(July 26, US time ), by US and North Korean delegates. Both sides claimed victory at conclusion of two years, 17 days of truce negotiations.
    1955 - Chuck Berry's first hit record, Maybellene, entered the R & B charts.
    1955-Billboard claims that only two singing stars can be considered guaranteed hit makers these days: Nat King Cole and country star Webb Pierce. Throughout his long and illustrious career, one that extended into 1982, Webb Pierce charted 96 singles, 54 Top Ten songs and 13 No.1 singles. In 1955, three of his tunes topped the charts for an unprecedented 46 weeks... almost the entire year. Using a point scale that takes into account both chart positions and longevity, Joel Whitburn ranks Webb Pierce as the No.1 artist of the 50’s, leagues ahead of Jim Reeves (No.14) Eddy Arnold (No.2) Hank Williams (No.6) and Lefty Frizzell (No.16). It is estimated that his record sales to date total over 65 million copies and his influence can still be felt throughout the world at every age level and in every musical genre.
    1957-The Bobbette's first and only Top Forty single, "Mr. Lee" enters the pop charts. The tune is about the trio's high school principal.
    1959 - The brothers, Santo and Johnny (Farina), of Brooklyn, New York released their one and only hit record, the instrumental "Sleepwalk," which would be the number one song for two weeks. "Tear Drop," their next song, only went to number 23 on the pop charts.
    1962- During the unsuccessful Albany, Georgia movement, Dr. Martin Luther King, Jr., is arrested and jailed for the third time. During months of protests, Albany's police chief jailed hundreds of demonstrators without visible police violence. Eventually the protesters' energy, and the money to bail out protesters, ran out. The movement was lost, until the spring of 1963 in Birmingham, Alabama.
    1964-- Pentagon announces 5000 more soldiers to Vietnambringing the total number of US forces in Vietnam to 21'000. Military spokesmen and Washington officials insisted that this did not represent any change in policy, and that new troops would only intensify existing US efforts.
    1965-The Beach Boys' "California Girls" is released.
    1966- The Wisconsin Supreme Court overrules a lower court decision and holds that the state doesn't have the jurisdiction to keep the Braves from moving to Atlanta.
    1974 - The House Judiciary Committee voted 27-11 to recommend President Nixon's impeachment on a charge that he had personally engaged in a "course of conduct" designed to obstruct justice in the Watergate case.
    1974 - "Annie's Song," John Denver’s biggest hit song, written for his wife, reached the top of the "Billboard" singles charts. Denver enjoyed three other number 1 songs: "Sunshine on My Shoulders", "Thank God I’m a Country Boy" and "I’m Sorry".
    1974-Lynyrd Skynyrd's "Sweet Home Alabama" is released.
    1976 - Former Beatle John Lennon won formal permission to remain in the United States as a permanent resident and would be eligible for United States citizenship in five years.
    1979- Little Richard -- billed as the Reverend Richard Penniman -- spoke to a revival meeting in San Francisco about the dangers of rock & roll
    1984-Prince's first movie, "Purple Rain" opens nationally.
    1986-Lemond Wins Tour de France. Cyclist Greg Lemond became the first American to win the Tour de France, the most important bicycle race in the world.
    1987 - Freeway shooting incidents were all the news in Los Angeles, California. There had been nine incidents involving vehicles and guns since June 18, 1987. There were actually two motorists shot to death and four others injured.
    1988 - Hot weather prevailed in the north central U.S. Williston, ND, reported a record high of 108 degrees. Thunderstorms produced severe weather in the eastern U.S., and in southeastern Texas. Richland County, SC, was soaked with up to 5.5 inches of rain.
    1988 --Boston's worst traffic jam in 30 years. “ People in Boston either talk about how the Red Sox are doing or the traffic. But since the I-90 tunnel extension to South Boston opened in January and the I-93 northbound tunnel beneath downtown opened in March—two major elements of the now infamous "Big Dig" project—they only have one of the two to complain about. Rush hour, which used to span 10 to 12 hours, has been cut in half.”
    1988 --Radio Shack announces the Tandy 1000 SL computer.
    1989 - Thunderstorms produced severe weather from Wisconsin and northern Illinois to New England, with 103 reports of large hail and damaging winds through the day. Thunderstorms in Wisconsin produced hail three inches in diameter near Oshkosh, and wind gusts to 65 mph at Germantown
    1996 - During the Olympic Games in Atlanta, Georgia a bomb exploded in an entertainment park killing two and wounding 110. A man was uprightly convicted in the newspapers, then let free, and no other suspect nor the person who set
off the bomb has been found to this date.
    1996-Canadian sprinter Donovan Bailey won the 100 meters at the 1996 Summer Olympics in Atlanta in the world record time of 9.84 seconds. The previous mark, set on July 6, 1994 by Leroy Burrell, was 9.85 seconds.
    1998- Sammy Sosa hits his first career grand slam establishing the mark for most career homers before hitting a grand slam (246).
    2000 -Toronto skipper Jim Fregosi wins his 1,000th game as a big league manager as the Blue Jays beat the Mariners, 7-2.
    2006- Five day San Francisco Bay Area heat wave comes to an
end. While it didn't set many all-time temperature records in the Bay Area, it did set records for the number of consecutive days with temperatures above 110." According to Pechner, who uses data from the National Weather Service and Bay Area Air Quality Management District, there were five consecutive days this month with temperatures above 110: July 21 (111 degrees, Vacaville); July 22 (114 degrees, Morgan Hill); and July 23-25 in Rio Vista (110 degrees, 113 degrees, and 111 degrees, respectively). ((Los Gatos/Saratoga had neighborhoods reporting 108 to 110.



Baseball Poem

"A clever runner steals a base." - James J. Metcalfe

James J. Metcalfe was a widely syndicated columnist for the Chicago Sun-Times and a German-American poet that put together a very nice poem that truly does catch the essence of the game in a most eloquent manner.


by James J. Metcalfe ©

Published: Unknown (Unknown)

The game of baseball is the king
Of all the games we play
And it is one pursuit that is
Distinctly U.S.A.
The people swarm into the stands
To watch their favorite teams
And munch their hot dogs when their lungs
Are not engaged in screams
The pitcher hurls the horsehide and
The batter gets a hit
Or else the ball goes sailing and
Some fielder smothers it
A clever runner steals a base
A player takes a walk
Or managers and umpires
Decide to have a talk
The crowd is gay or gloomy or
Completely in suspense
But it goes wild when someone knocks
The ball beyond the fence.




The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?



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