Leasing News

Contact Dick Mitchell @ Randolph Lynn Associates for prompt professional pre-funding equipment inspections, collateral "visits", and related lessee/vendor contacts. (Florida locations) 727-302-9144 Email:dmrla@gte.net

Site Inspection: Placentia, CA

On site verifications, document signing or collections. Quick, accurate and professional. Reports with photographs e-mailed direct. Agents throughout US. Contact for coverage and rates. Email:pwright@yk2bizsolutions.com

Site Inspection: US & Canada

Quiktrak performs equipment inspections within 24 hours of your job placement anywhere in the US. Order, check status & receive reports & photos online. Email:sdresser@quiktrak.com

Software: Edmonds, WA

Preferred Broker Solutions offers software support (also custom templates & reports) for the System 1 and CapitalStream Advantage products. Ask about our Web Application interface. Email:support@pbs4u.com

Trainer: Atlanta, GA

Able to provide training to dealers on financial merchandising as well as provide asset management service Email:kingcole@mindspring.com

Vendor Sales Training: Atlanta, GA. 6yrs exp.in training Resellers, Dealers & Vendors on how to "Sell Leasing". Will train your dealers on your specific program or generic "Leasing 101". email:mreedy@softtechleasing.com

Outsourcing Ads are free.

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Pictures from the Past---2002--- Rick Wilbur/Jim Buckles

The famous Rick Wilbur of MediCap-lessor/discounter/superbroker/broker/

bon vivant with System 1/Software Expert Jim Buckles. Hands on experience

at the Marina del Rey Conference, to be repeated at the Chicago March

Conference.

“The handsome young man in the middle is my son Carey who is also my partner. I have no idea what we were doing there because I'm old forgetful..Carey on the other hand was probably trying to learn more about the capabilities of Capital Stream.

“I think the industry is beginning to catch it's collective breath and

business is getting much stronger. Our volume is increasing and the quality

of credit appears to be getting better.

“Hope to see you in Chicago.”

Rick

From Jim Buckles--

“The picture was taken at the NAELB Regional Conference in Marina Del Rey

last November. I was discussing the latest features of Advantage version

2.0 (the successor to the System 1 software program) with Rick & Carey

Wilbur. This version will be available Q2 of this year and I will be

showing a "sneak peak" in Chicago for the NAELB National Convention 3/19 -

23. A free training session on 2.0 and a general discussion of Advantage

and alaQuote will be available to convention attendees on Thursday 3/19 from

1pm - 5pm.

“Since leaving CapitalStream 2 years ago and forming Preferred Broker

Solutions, I have been very fortunate to bring aboard two previous System 1

people. "Technical Guru", Trevor Thompson and "Developer Extraordinaire"

Tom Wynne. Both people have been a terrific asset to our company and have

allowed us to grow rather rapidly, keeping up with the constant demand of

offering superior software and the best possible customer support available

to the Leasing Community.

“We are experiencing a very steady growth with our Advantage customer base as

well as subscribers to our alaQuote program. alaQuote is our web based

quoting tool that furnishes a private label Lease Calculator, Custom Quote

Letter, Credit Application and Credit Release form which feeds application

data into Advantage. This program is extremely easy to use and furnishes a

professional web presence to any Leasing Professional's web site as well as

a private label offering to their vendors.

“The industry is definitely in a regroup and reorganize phase at the moment.

This is nothing new, we just haven't experienced this, at this depth, in a

long time. The upswing is inevitable. This is a great time to review how

we are all doing business, trim the fat, increase efficiencies, target new

markets and get moving. There is no doubt that some companies are still

doing deals, while others are just waiting for something to happen. These

times, you have to make it happen!

“Look forward to seeing everyone in Chicago.”

Jim Buckles

jim@pbs4u.com

Preferred Broker Solutions

www.pbs4u.com

19621 82nd Pl W

Edmonds, WA 98026

(866) 352-8665 sales

(425) 672-2591 support

(435) 514-3787 fax

While we are at it, if you are interested in learning more about the

NAELB Chicago Conference, please go here:

http://64.82.65.38:80/newsletter/conference.htm

This is the NAELB Lease Logic Newsletter (for members only,)

but we have a copy, where you can read: Broker Agreement Representations and Warranties: Are There Any Solutions? by Joseph Bonanno, Esq., CLP

NAELB Legal Counsel and other tips and articles. Excellent “on line

magazine for members.”

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Perhaps we can get away with printing it by bringing out the president’s message:

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See You in Chicago

by Gerry Egan, NAELB President

I am looking forward to seeing everyone in Chicago later this month for our annual conference. It promises to be one of the most productive ones we've had and it's encouraging to hear from so many who are coming for their first time.

This conference marks the end of my tenure as NAELB president and I want to thank all the members who have worked so hard to make this association continue to grow. It's been a rewarding and interesting opportunity to help guide the association and I encourage any member who would like to be a part of the management and direction of it to get involved in committee work and let your interest be known.

Thanks to everyone and see you in Chicago!

My top ten reasons for attending NAELB conventions

10. Visit new funders

9. Maintain contact with existing funders

8. Hear about new technologies and techniques

7. Learn about competition

6. Socialize with like-minded professionals

5. Get legal warnings and updates

4. Learn documentation tips from seminars

3. Learn how funders currently look at credit

2. Test new ideas out on other brokers

1. Listen, listen, listen to other brokers

If you haven't registered for the 2003 NAELB Conference, do so today! Click on NAELB's website "Upcoming Meetings" http:// www.naelb.org/events.shtml

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New Update on Commercial Money Center -Netbank/Lakeland Settle

“Net Bank and Lakeland Bank settled with the Bankruptcy Trustee.

Apparently, they got an assignment of the leases, and didn't bother

filing a UCC Financing Statement! Can you believe that?????

“The upshot is that for Net Bank, they are paying (yes paying) the

Trustee $6.2 million dollars. This is on the heals of major losses at

the Bank. Kit, you might want to do a search on them, their stock

sucks, and the have major reserves for losses this year. After paying

the $6 million, they get to keep the worthless leases. Hey, is that a

good settlement or what?

“Lakeland pays 1.3 million.

“The settlement gets confirmed by Bankruptcy Court later in April.

2003.

“The deal was signed 2/5/03.”

(From a highly reliable source-name with held)

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NetBank Schedules First Annual Analyst and Investor Meeting

(see previous story—NetBank is parent of Republic Leasing of South Carolina)

ATLANTA----NetBank, Inc. (Nasdaq:NTBK), parent company of the country's first commercially successful Internet bank, NetBank(R) (www.netbank.com), will hold its first annual analyst and investor meeting March 24-25. The company is conducting the meeting as part of its ongoing commitment to help current and potential investors fully understand NetBank's business.

The two-day meeting will feature presentations from division heads representing Finance, Retail Banking, Strategic Initiatives, Mortgage Lending, Capital Markets and Operations. Presentations will begin at 8 a.m. and conclude at 12 p.m. on both days.

Interested parties may listen to and view the presentations via a live Web audiocast. The audiocast can be accessed on the bank's Web site at www.netbank.com/about_relations.htm, beginning on March 24. The audiocast will be available as an archive for 30 days. For further information about the meeting, investors may contact Matthew Shepherd at 678-942-2683.

About NetBank, Inc.

NetBank, Inc. (Nasdaq:NTBK) operates with a revolutionary business model through a diverse group of complementary financial services businesses that leverage technology for more efficient and cost-effective delivery of services. Its major subsidiaries include NetBank(R) (www.netbank.com), the country's first commercially successful Internet bank; RBMG, Inc., a wholesale mortgage lender that generates residential mortgages through a nationwide network of independent brokers and correspondent lenders; Market Street Mortgage Corporation, a retail residential mortgage lender that conducts business in 39 states; Meritage Mortgage Corporation, a wholesale mortgage lender that originates non-conforming residential mortgages through a nationwide network of independent brokers; and Republic Leasing Company, Inc., a wholesale originator and servicer of commercial business equipment leases. NetBank is a Member FDIC. NetBank, RBMG(R), Market Street Mortgage(R) and Meritage(R) are Equal Housing Lenders.

CONTACT:

NetBank, Inc.

Rich Jeffers, 678/942-7596

rjeffers@netbank.com

SOURCE: NetBank, Inc.

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Resource America's Trapeza Funding Closes $400 Million Offering Bringing Total Raise to $730 Million (Leaf Financial—small ticket leasing)

PHILADELPHIA---Resource America Inc.(NASDAQ:REXI) (the "Company") announces that Trapeza Funding II, LLC ("Trapeza"), a joint venture between Financial Stocks, Inc.

("FSI"), a Cincinnati-based Registered Investment Advisor, and Resource America, Inc., a Philadelphia-based proprietary asset management company, has completed Trapeza CDO II, ("CDO II") a $400 million pooled trust preferred collateralized debt obligation through underwriters Credit Suisse First Boston and SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc. Trapeza Capital Management, LLC, an affiliate, will act as collateral manager of CDO II. Trapeza CDO I, a $330 million pooled trust preferred CDO, was completed in November, 2002. Since beginning business in March, 2002 Trapeza has raised a combined $730 million in its CDO transactions.

Jonathan Z. Cohen, Managing Member of Trapeza and Chief Operating Officer of Resource America, Inc,, stated, "We are gratified by the success we have achieved in the CDO marketplace. In our first year, we have been able to raise $730 million in this market. This success enhances Resource America's growing financial services division, and strengthens our overall proprietary asset management business model."

Resource America Inc. is a proprietary asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in energy, real estate and financial services. The Company's financial services division includes Trapeza and Leaf Financial Corporation, the general partner of Lease Equity Appreciation Fund I, L.P., a proprietary asset management product focused on small ticket leasing.

Financial Stocks, Inc. is a registered investment advisor focusing on financial services companies, including banks, thrifts, insurance companies, commercial and consumer finance, leasing brokerage and financial technology businesses. Investing in both publicly-traded and privately held securities, FSI delivers value to its investors and its portfolio companies through its broad and deep industry experience, expertise in corporate finance and structure, and experience with complex financial institution regulation.

Statements made in this release may include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release.

CONTACT:

Resource America, Inc.

Pamela Schreiber, 215/546-5005

Fax: 215/546-5388

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The Funding Tree---The Details of the Closing from Landlinemag.com

SPECIAL REPORT: Easy money? Not so easy for Legacy Leasing

--by Rene Tankersley, feature editor/landlinemag.com

An advance-fee finance company that owner-operators say took advantage of them is feeling the heat of an investigation after the Nevada Attorney General's Office and local police secured the company's offices and files last week.

The Las Vegas Metro Police Department executed a search warrant Wednesday, March 5, on Legacy Leasing, also known as The Funding Tree, according to Debra Bryant, an office worker at the police department. She said police secured the premises in preparation for investigators from the Attorney General's Office, who arrived the following day.

Neil Rombardo, deputy attorney general in Nevada, confirmed a search warrant was issued for Legacy Leasing's office suite, two vehicles and a residence.

Although the company did business under the name Legacy Leasing, it is registered with the Nevada Secretary of State's Office as The Funding Tree, an advance-fee finance company formerly located in California.

Last year, Land Line reported owner-operator complaints about The Funding Tree after OOIDA members reported paying advanced fees and payments to the company for financing that never materialized.

After the California Department of Corporations last year ordered The Funding Tree to stop making loans without a lending license, the company's former president, Kendra Bernal, was arrested. The company's then-vice president, Bruce Peterik, announced he would be president.

Last month, Land Line learned that The Funding Tree had resurfaced in Laughlin, NV, as Legacy Leasing. Through information from former Legacy Leasing employees, Land Line learned OOIDA members had paid money to the company for advance fee and payments on truck financing that never materialized.

One member, Larry Hargrove of Las Vegas, says he paid Legacy Leasing $4,000 in November. After three months of empty promises, Hargrove showed up at Legacy Leasing one afternoon last month demanding his money back.

Hargrove said police handcuffed him after the company accused him of threatening them. Hargrove says police released him on the spot after his wife showed them their finance agreement from Legacy Leasing.

Hargrove wasn't the first OOIDA member to show up at Legacy Leasing's offices. Kenny Farrington, also from Las Vegas, says he paid the company $3,200 in December.

Last month, Farrington and Bob Groves, an Oregon truck dealer who was also waiting for money from Legacy Leasing, went to the company's office and demanded their money. Groves said they left empty-handed after office personnel threatened to call police.

Donna and Gerald Branscom from Turon, KS, say they paid more than $7,000 to Legacy Leasing to finance a new truck. As with other members, the Branscoms say financing was always just a day away - or at least that's what Legacy Leasing had told them for the past three months.

For the Branscoms, the news of Legacy Leasing's demise is bittersweet. They are still without their money or their truck. Because they sold their old truck to get the $7,000 down payment, the Branscoms were left with no financing and no truck.

Fortunately, Gerald's carrier leased him a truck so he could keep running until he can buy another truck.

"We figured that new truck would have been our last truck until retirement," Donna said. "They put us out of work. They took away our dream. We could have lost everything."

LAND LINE MAGAZINE IS THE BUSINESS MAGAZINE FOR PROFESSIONAL TRUCKERS AND THE OFFICIAL PUBLICATION OF THE OWNER-OPERATOR INDEPENDENT DRIVERS ASSOCIATION (www.ooida.com)

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Fannie, Freddie Shocks Could Spread to Broader Economy

U.S. BANKER WEEKLY BULLETIN

In hopes of protecting banks and other companies exposed to the mortgage lending market, St. Louis Federal Reserve President William Poole warned that an unexpected financial shock at either of the top U.S. home finance companies, Fannie Mae or Freddie Mac, could inflict heavy damage on the housing industry and the broader U.S. economy. Because of the scale of the short-term debt obligations of Fannie Mae and Freddie Mac, a problem at either company would spread quickly.

Poole's suggests forcing Fannie Mae and Freddie Mac to hold a greater cushion of capital, and take away the government's ability to lend the firms billions of dollars, assuring the markets that the U.S. government has no obligation to guarantee the companies' debt.

Credit Card Issuers Suffer as Airlines Falter

Marketing arrangements with airlines were once a fertile source of growth for banks issuing credit cards. But as the airline sector gets rocked by losses and several big bankruptcies, their close ties could come back to haunt issuers. As the airline industry continues to struggle with the drop in travel and rising fuel costs, issuers have begun to face the prospect of slower account growth in this once vibrant area and the potential to lose millions if an airline goes bust.

Co-branding arrangements with airlines evolved as a crucial way for credit card issuers to gain new accounts, as customers are attracted by rewards such as frequent flier miles. Bank One recently said in its annual report that the company stands to lose several hundred million dollars in a worst-case scenario if bankrupt United Airlines is forced to shut down operations completely. Other troublesome relationships include bankrupt US Airways' partnership with Bank of America and American Airlines'

agreement with Citigroup.

(uh-oh, hope they don’t start a “real” equipment leasing credit card---co-brand

with CIT or a major vendor. editor )

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Many Leasing Companies Not Licensed by California Dept. of Corporations

nor do they require brokers to be licensed.

by Christopher Menkin

The response were due to this request from Bob Robichaud:

The article pertaining to the Commercial Money Center (Wednesday, March 5,

2003), as not having a California Finance Lenders License and the potential

risks and penalties they now may face was very interesting. As a Commercial

Banker I would be interested in hearing the opinions of you and any of your

readers concerning the necessity of obtaining, or not obtaining, this

License. (Do you need it or not? why? should a Commercial Lender as "Due

Diligence" insist that any Brokers they discount deals for have it? Why

not?).

Thanks Kit, I always enjoy reading the latest news. Keep up the good work!

Bob Robichaud

Bob.Robichaud@pffb.com

Lease Finance Officer

PFF Bank & Trust

Over twenty major funders and outside of California and five

instead of the state did not want to go on the record regarding their requiring a Finance Lender’s License from their broker, nor comment whether they had one. Several said after reading the CMC lawsuit where they were not licensed, and

the subsequent lawsuit, they were “looking into it” or “investigating

it.

This is from the lead attorney in the class action suit:

“Brokers are NOT required to have licenses unless the deal is a consumer

deal. Financial Code Section 22337. But, if the lease has blanket lien

language, there is a statute here which says that it is a consumer loan.

Financial Code Section 22204(b)

“So blanket lien in lease? License your brokers.

“No blanket lien in lease? Unlicensed brokers are OK.

“If lessors on the lease are actually brokers, then they must be

licensed, whether they are the funding source or not. That was CMC's

problem, amongst others.

“We worked with a woman in the Procopio firm who wrote an Article for

The Secured Lender". The firm is actually called Procopio, Cory,

Hargreaves & Savitch, LLP, and I bet they have a web site, and I have

heard they have the article on their web site.

“I think everyone should be licensed. It just makes no sense why

one would risk this...”

Regards,

Tom McCurnin

Barton, Klugman & Oetting

Los Angeles, California

email: tmccurnin@bkolaw.com

Voice:(213) 621-4000

Fax (213) 625-1832

Visit our Web Site at www.bkolaw.com

In all the legal workshops I attended at United Association of Equipment Leasing Conferences, it was drummed into our head that we must have a license...

---and do business only with those who have a license. If you have salesmen, they

must be on the payroll to work under your license if they do not have one.

The reason, if the transaction is considered a finance because you have the consumer personally guaranteeing the transaction, and are relying on their person credit and not their business credit to make a decision, you definitely need a license. If the transaction is really a loan or finance disguised as a lease,

and let's not kid ourselves about this, we aren't talking about a railcar or sophisticated arrangement, but a small ticket transaction, you need a license if you are not a bank or other financial institution>regulated in the State of California. If the lease was assigned to you by a person or company not licensed, you may be liable for usury and the lease may be considered not valid---meaning the lessee could not only break the lease but you could be penalized because you did

not have the license. In addition, there are rules and regulations regarding

documentation and other fees, including late charges.

While much of the code concerns transactions under $5,000, there are

provisions for commercial loans which may really be “disguised leases.”

So if you don’t want to be sorry, and learn the hard way, certain states

have Finance Laws and you have to abide by them. In California,

if you are not licensed, such as a bank or other financial institution,

you must have a Finance Lenders License and do business only

with licensed entities.

FEW STATE THEY HAVE LICENSE OR REQUIRE IT---

There were few who wanted to admit they were not licensed

nor had a require that they would only do business with

licensed leasing companies. No one responded that they

required the license to do business with a broker.

“We do not require our originators to be licensed in the State of

California. “

Brian Bjella

U.S. Bancorp Manifest Funding Services

800-325-2236 (ext 7193)

brian.bjella@themanifestgroup.com

---

“I responded directly to Bob, but will be happy to repeat.

I am far from an expert, but we do not require this license from our

brokers. I believe it is only the funding source that needs to be

concerned about this issue. Of course, we have a license, and I would

recommend anyone else funding deals in CA to have one. (with the

exception of banks, given the exemptions made for banks by the State).

Still trying to get your deal done. I don't know too many details, but

my guys tell me the property has additional encumbrances that the lessee

is trying to clear up. I hope we can get this one done for you! Thanks

again for the business.”

David Winick

David@creativeclg.com

Creative Capital

Many if not most brokers and lessors in California do not have a lenders license. The main reason is that the reporting, record keeping, and fees required to maintain a license are more than most small brokers and lessors can afford. The State has expressed a de facto understanding and acceptance of this situation.

Legally any individual or other entity is required to have the license if they participate in any part of obtaining a loan for a company that does not employ them. Whether it is on behalf of the borrower or the lender. This is very similar to being an unlicensed contractor. The client or the lender can legally deny compensation or sue for return of compensation and the broker has no

recourse because the broker is not licensed to do the work he is requesting compensation for.

To protect themselves large lenders have established policies whereby an unlicensed broker is not directly compensated for referring transactions to them. The broker must negotiate his fee outside the transaction.

The one exception is for true lessors. A transaction that actually is a lease not a loan is exempt from this licensing requirement. The main reason that so many broker lessors have gotten away with doing $1 purchase options for so long is that in the beginning these transaction were for small computer leases that had little or no residual value and the $1 option leases were a small part of the overall portfolio but as banks came into the industry as direct lessors and non-recourse indirect funding sources this practice expanded to all types of equipment.

The practice is now a customary and traditional part of the way leasing companies and funding sources do business and for the most part supported or at least condoned by the courts and the state agencies.

In spite of this my opinion is that if I am a funding source working with

brokers I would want to work lease brokers who are selling true leases,

borrowing from me based on a pledge of the collateral and an assignment of

the stream of payments, and I have a some recourse against the

Lessor for default.

Focused on Your Success

Michael Jay Rogers

American Bank Equipment Leasing, Inc.

921 W. 17th Street

Santa Ana, CA 92706

(888) 836-1111 x 101

Fax (714) 836-0871

mike@e-ABEL.com

----

From: mitchbedke mitch@financecapital.us

Subject: Lenders License

Here is the law:

CALIFORNIA FINANCE LENDERS LAW

The California Finance Lenders Law is contained in Division 9 of the

California Financial Code, commencing with Section 22000. Effective July

1, 1995, the Personal Property Brokers Law, Consumer Finance Lenders

Law, and Commercial Finance Lenders Law were consolidated without

substantive change into the California Finance Lenders Law (AB 2885,

Chapter 1115, Stats. 1994). The regulations under the California Finance

Lenders Law are contained in Chapter 3, Title 10 of the California Code

of Regulations, commencing with Section 1404 (10 C.C.R. =A71404, et =

seq.).

Finance lenders and brokers, by number of licensees and dollars of loans

originated, are the largest group of financial service providers

regulated by the Department. A finance lender is defined in the law as

"any person who is engaged in the business of making consumer loans or

making commercial loans." A finance lenders license provides the

licensee with an exemption from the usury provision of the California

Constitution.

Licensed under the law are individuals, partnerships, associations,

limited liability companies and corporations, including many of the

largest "Fortune 500" companies.

There are a number of "non-loan" transactions, such as bona fide leases,

automobile sales finance contracts (Rees-Levering Motor Vehicle Sales

and Finance Act) and retail installment sales (Unruh Act), that are not

subject to the provisions of the California Finance Lenders Law

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.

The requirements for a license are set forth in Section 22100, et seq.

of the California Financial Code. The law requires applicants to have

and maintain a minimum net worth of at least $25,000 and to obtain and

maintain a $25,000 surety bond. In general, principals of the company

may not have a criminal history or a history of non-compliance with

regulatory requirements.

Mitch Bedke

Finance Capital

Tel (909) 600-8383

Fax (909) 461-4334

mitch@financecapital.us

www.financecapital.us

http://www.corp.ca.gov/pub/lender.htm

“Finance lenders and brokers, by number of licensees and dollars of loans originated, are the largest group of financial service providers regulated by the Department. A finance lender is defined in the law as "any person who is engaged in the business of making consumer loans or making commercial loans." A finance lenders license provides the licensee with an exemption from the usury provision of the California Constitution.

“Licensed under the law are individuals, partnerships, associations, limited liability companies and corporations, including many of the largest "Fortune 500" companies.

“There are a number of "non-loan" transactions, such as bona fide leases, automobile sales finance contracts (Rees- Levering Motor Vehicle Sales and Finance Act) and retail installment sales (Unruh Act), that are not subject to the provisions of the California Finance Lenders Law.

“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.”

The January, 2003 California Department of Corporation application asks on page six:

For Brokers License

/ / Loans will only be brokered to CLF licensed lenders

For Lenders License:

/ / Source of funds will be exclusive of any funding advances from an institutional investor committed to purchasing the note.

Exhibit A: Please provide a balance sheet of the applicant as of a date not more than 90 days prior to the date of this application , that indicates a minimum net worth of $25,000 (Financial Code Section 22104; the balance sheet may be unaudited.)

Exhibit. Please provide a copy of a surety bond, including any and all riders and endorsements in the amount of $25,000. Instructions and surety bond from acceptable to the Department of Corporations are enclosed ( Financial Code Section 22112.)

They do ask if you have filed bankruptcy, to list all companies you have

served as an officer or principal, plus all suits that you were a defendant.

They appear to be interest more in “character” than financial network,

but do ask for a “balance sheet.” And you sign the statement this

is the truth and it must be notarized

Another provision concerns making all “books, accounts, papers, records and files within 10 calendar days of any request from the commission,” plus “...agree to pay the reasonable expenses for travel, meals, and lodging of the Commissioner of Corporations or the Commissioner’s representatives incurred during any investigation or examination made at the licensee’s location outside the state.

Provide a short description of your business plan.

---------------------

By the way, the cost of the license: $300, includes the processing fee.

Good until revoked or your retire it.

Leasing News has asked the Department of Corporation for their

definition regarding those in “equipment leasing;” giving a definition

between a “capital lease,” which basically has a “nominal purchase

option” and a “true lease” which is an operating lease as generally interpreted

by certified public accounts, their accountancy board, and both

the state and federal taxing authorities.

Barry Dubin, Esq. at Cooper-White-Cooper knows the difference as well as Jeffrey

Taylor, CPA,CLP. in ten words or less, true or false: License needed for a “finance lease” not a “real lease.” Let’s see what the California Department of Corporations will “officially” tell us.

Here is a well-known attorney who has written an article on the California law.

“This is in response to Bob Robichaud's letter to you (March 11, 2003)

regarding the California Finance Lenders Law. Bob or others who are

interested in this important issue, may want to read an article I wrote last

year, which discussed and analyzed the provisions of the statute, who should

obtain a license and the penalties for failing to obtain the license if

required to do so. The article was published in the July 2002 edition of

LJN'S Equipment Leasing Newsletter.”

Michael A. Karpen

Jenkens & Gilchrist Parker Chapin LLP

The Chrysler Building

405 Lexington Avenue

New York, NY 10174

Telephone: (212) 704-6149

Facsimile: (212) 704-6288

mkarpen@jenkens.com

http://www.leasingnews.org/PDFFiles/E54CCA00.PDF

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Tom Strickfanden and Jim Mannis Join TCF Leasing

Minnetonka, –TCF Leasing, Inc announced that Tom Strickfaden and Jim Manns have joined TCF Leasing, Inc., a general equipment finance company focused on middle market companies, specialty vehicle, manufacturing equipment and lease discounting.

Tom Strickfaden has been named Vice President, Manufacturing Equipment Division. Tom is based in Farmington Hills, MI and will provide equipment financing for the woodworking and machine tool industry. He has been active in the equipment finance business for the last 16 years and was formally President of Lease Financial, Inc. Tom will report to Bill Colwick, TCF Leasing, Inc., Sales Manager of the Manufacturing Equipment Division.

Jim Manns has been named Vice President and will be based in Overland Park, KS. Jim will primarily serve companies based in Missouri, Iowa, Kansas and Nebraska. Jim has over 20 years experience in equipment finance sales and will report to Chuck Sell, TCF Leasing, Inc., Senior Vice President and National Sales Manager.

TCF Leasing, Inc., is a wholly owned leasing and equipment finance subsidiary of TCF Financial Corporation (TCF) (NYSE:TCB). TCF Leasing, Inc.’s, corporate headquarters is located in Minnetonka, Minnesota. TCF is a Wayzata, Minnesota-based national financial holding company with $12.2 billion in assets. TCF has banking offices in Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana. Other TCF affiliates provide mortgage banking, brokerage, and investment and insurance sales.

CONTACT:

Nicole West

TCF Leasing, Inc.

Phone Number: 952-656-7415

Fax Number: 952-656-3273

E-mail: nwest@tcfleasing.com

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IDS/InfoLease Customers Wait

IDS just released their 2002 numbers. It doesn’t look good. They are

definitely shopping the company big time. Also explains why Summit back away.

The source is the www.iii.co.uk <http://www.iii.co.uk/> (Stock

Ticker: IDG.L) . It is a UK stock market info service. You need to

Run their Balance Sheet past your credit guy and see what he says.

If your Net Assets of $14 million includes $28 million of goodwill

most CPAs would say you're under water.

(name with held, from UK)

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(AFR) 11/03/03 07:01: IDS Group PLC - Final Results

IDS Group PLC - Final Results

RNS Number:5425I

IDS Group PLC

11 March 2003

IDS Group plc

("IDS" or "the Group")

Preliminary Results for year ended 31st December 2002

Key Points

* Revenue £30.2m (2001: £35.4m)

* Operating profit for the year, before goodwill

amortization, impairment and all exceptional items, £3.0m (2001:

£3.8m)

* Substantial cash generation during the year, with net

debt reducedy £4.2m to £14.2m

* Earnings per share for the year, before goodwill

amortisation,impairment and all exceptional items was 3.49p (2001:

4.82p)

* A non cash accelerated goodwill write off of £33.2m has

been made

* Discussions remain on-going with a number of parties

regarding a possible offer for the Company

Commenting on the results Tom Glucklich, Acting Chairman of IDS said

"2002 has been a challenging year for the Group, as a result of both

the continued difficult economic conditions and the uncertainties arising

from the strategic review process. Against this background of uncertainty it

is gratifying that the Company has recorded results, which demonstrate

that the Group remains resilient and profitable on an operating basis and

substantially cash generative. Prudent management action has further reduced costs during the year and I believe IDS is well placed to benefit from the recovery in ITspending, when it comes."

For further information, please contact

IDS Group (01962) 703448

Tom Glucklich (Acting Chairman)

Chairman's Statement

Review of Business

It is well recognised that trading conditions in the software market

sector over the past year have been difficult. The IT industry has been

characterised by tight cash considerations, pressure on margins, a financial sector in some difficulty and general uncertainty all of which has inevitably

impacted upon IDS.

Because the Group's sales mix in 2002 has been such that recurring

revenue has approximately covered operating costs, the Group's results have shown considerable resilience. Turnover at £30.2m was some £5.2m down on

2001 (£35.4m) and operating profit before exceptional items, and goodwill

amortisation and impairment was £3.0m (2001: £3.8m). IDS operating

profit is very sensitive to changes in new licence sales as such revenues fall

substantially through to the bottom line and the Board considers that

limiting the decline in operating profit to £0.8m when revenues have declined

by £5.2m is a creditable management performance.

Equipment Leasing

The Group's Equipment Leasing Business comprises some 76% of Group

revenues, nearly all of which is derived from the InfoLease product. InfoLease

has a large installed customer base of some 150 customers and is the

market-leadingproduct in both the United States and Australia. Revenues from this installed base held up well during a difficult year and totalled £23.1m,

compared with £26.9m in 2001. Add on licence revenues, (mainly generated by

capacity increases of users) were lower than originally expected, reflecting

the current lack of growth in the leasing market.

Four new licences for InfoLease were signed in 2002, down

significantly on the previous year's nine and the higher levels of prior years.

Additionally, since year end, two more InfoLease licences have been signed. The signing of new customers during these tight economic times, and the fact that two of these new licences were with significant international banks, further

demonstrates that InfoLease remains the product of choice for major lessors. Goodb progress was made during the year in the introduction of Rapport, a web enabled front-end system for InfoLease users. The Rapport module was in Beta test with a number of customers by 31 December.

Full Service Vehicle Leasing

Revenue from Full Service Vehicle Leasing, which comprises the

Fleetware and Vehicle Data products grew by 6% in 2002. As a consequence of

difficult market conditions and the continued investment in Fleetware product

development, the division failed to make an overall profit.

Following the appointment of a new CEO of the Group's European

operations in April, action was taken to streamline the organisation to make it more customer focused and responsive. In addition at an operational level,

significant progress was made during the year in making the Fleetware product more robust and reliable. Six successful Fleetware installations were completed

during the year.

Wholesale Finance

The UK based Wholesale Finance Operation traded profitably during the

year and has a stable customer base, predominantly among the large automotive

manufacturers. Some investment in the development of the Credit Line

Plus product is planned for 2003.

Unlike the UK based business, the service bureau customer base of the

US wholesale operation has not been sufficient to cover its costs. As a

result, the decision to close the operation was taken in June 2002 and the

operation closed in February 2003.

Exceptional Items

Exceptional items comprised a £0.3m provision taken in respect of the

cost of closing the US wholesale operation, a further £0.5m provided in

respect of the Group's vacant Basingstoke property and a credit of £0.2m relating to the partial release of a provision set up in 2000 to account for the

rationalisation of the Group's software product range. In addition £0.1m of costs

relating to the strategic review process undertaken during the fourth quarter of

2002 were included within exceptional costs.

Balance Sheet

At the year end the net debt position of the Group was £14.2m and it

currently stands at approximately £12.7m. The year on year reduction in net

debt, including the positive impact of currency translation was £4.2m, which

represents a considerable achievement given the level of the Group's

profitability for the year.

As required by FRS11, Impairment of fixed assets and goodwill, the

Board has, in view of the significant change in trading environment during 2002,

conducted a further review of the carrying value of goodwill arising on the

purchase of Decision Systems Inc. ("DSI") and David Henley Systems Limited

("DHSL"). Following the methodology of FRS11, in the light of the changed market conditions since 31 December 2001, a non-cash accelerated write-off of

£33.2mhas been made through the Profit and Loss Account.

Dividend

The Board does not propose payment of a dividend.

Board and Management

During the year Jim Granger and Harry Tee joined the Board as Non

Executive Directors. They have already made a significant contribution and I

look forward to working with them in the future.

John Hubert resigned from the Board of IDS in January 2003 for health

reasons.

As previously announced, Michael Roller will resign from the Board

effective from the release of this announcement. Michael will be replaced as

Chief Financial Officer of the Group by Jim Horstmann currently Chief

Financial Officer of IDS Americas.

I should like to take this opportunity to record the Board's great

appreciation for the roles played by both John and Michael in the reorganisation

and rationalisation of the IDS Group in 2001 and 2002, which has been

instrumental in restoring the Group to profitability at the operating level.

Strategic Review

On 23 October 2002 the Board outlined its intentions to conduct a

strategic review of the options open to the Company to maximise value for

shareholders. On 26 November 2002 Jim Meinen was granted a leave of absence from his role as Chief Executive Officer to pursue a possible MBO.

The Board currently remains in discussions with a number of parties

regarding a possible offer for the Company. Shareholders should be aware that

there can be no guarantee that an offer capable of recommendation by the Board will be forthcoming. It is my intention to conclude this strategic review

process in the near term.

Outlook

The Group's businesses proved to be resilient to the weak market

conditions of 2002, which the Board anticipates will also prevail for much of 2003. However, prudent management action throughout this economic downturn, together with the " mission critical" nature of the InfoLease product and a reduced cost base in the US and in Europe has positioned the Company to effectively meet these challenging market conditions.

Against this backdrop of continued difficult market conditions it is

pleasing to be able to report that the Group has made a positive start to the new

financial year with two InfoLease licences already signed. As in prior years

the Board anticipates that the Group's revenues will be weighted to the second

half of the year.

The Board believes that the decision to continue to invest in its core

technologies as evidenced by the release of enhanced functionality for

InfoLease and Fleetware (and other new products in the pipeline) anticipated for

the second half of the year, positions IDS well to benefit from the

recovery in IT spending, when it comes.

T C Glucklich

Chairman

11 March 2003

(Yes, we have readers in the UK, France, Saudi Arabia, Brazil, India and Japan who send us news—editor)

[Headlines]

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ELA Enters Leasing Software Business---

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Tabitha Software, a software and web services company focused on asset management, announced the signing of a long term strategic partnership with the Equipment Leasing Association (ELA), the association that represents companies involved in equipment leasing and the finance industry.

Tabitha Software has developed and implemented a web-based industry technology platform for asset management. Tabitha’s industry solution provides key workflow and business process modules tailored to both asset management and the leasing industry. The solution incorporates tools for compliance, risk management, business intelligence, reporting, data management and document management. The ELA and Tabitha Software intend to improve asset management operations and transform leasing companies into “real-time enterprises.” Several of the leasing industry’s largest financial institutions have immediately adopted the platform.

Tabitha’s integration platform also provides a single point of connectivity for equipment lessors and asset managers to coordinate, evaluate and transact business with the leasing industry’s premier service providers and distribution channels. Service providers are given Internet portals to manage and track business workflow processes and communicate with asset managers. Additionally, service providers can connect their internal asset tracking systems directly to the industry platform. This provides the leasing institution with real-time information through continuous data flow between multiple partners and disparate systems.

“The ELA believes that this strategic relationship will add tremendous value to the entire leasing industry and we encourage all ELA members to seriously explore this opportunity,” said Michael Fleming, President of the ELA. “We see strategic value in a unified industry approach where all members can benefit and participate. The ELA has made a long-term commitment to this initiative.”

“The ELA is one of the most prestigious associations overseeing a $200 billion industry,” said Todd Wolf, CEO of Tabitha Software. “Tabitha is excited by the long term commitment of the ELA and the opportunity to provide significant value to all the members of the leasing industry.”

ABOUT ELA

Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association that represents companies involved in the dynamic equipment leasing and finance industry to the business community, government and media. ELA's diverse membership consists of independent leasing companies, banks, captives, financial services corporations, broker/packagers and investment banks, as well as service providers like accountants, consultants, equipment managers, executive recruiters, insurance companies, lawyers, publishers, and software providers. ELA promotes the leasing industry as a major source of funds for capital investment in the U.S and other countries. Headquartered in Arlington, VA, ELA is a national organization with more than 850 member companies and a staff of 27 professionals. In 2003, equipment leasing is estimated to be a $208 billion industry. (www.elaonline.com)

ABOUT TABITHA

Tabitha Software is a global provider of eBusiness solutions. Through its products and services, Tabitha Software enables enterprise clients and trading communities to more efficiently conduct collaborative business over the Internet in order to reduce costs and increase productivity. Tabitha’s flagship product is the Tabitha Asset Management Suite which is an innovative software solution that provides asset managers with a private trading exchange, an external communication platform and a secure data repository. Asset managers benefit from a unified point of connectivity to coordinate, automate, evaluate, and transact business with external networks of suppliers, service providers and buyers worldwide. For more information go to http://www.tabithasoftware.com

http://www.tabithasoftware.com/resources/Tabitha%20Article-Monitor%20Daily.pdf

[Headlines]

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Webleasing-- List of other leasing software companies

http://www.leasingnews.org/elease/software.htm

Capital Stream
cyberlease
Docutouch.com
eCredit.com
eFinance.com
iLease
Lease Forum
Lease Now
Lease Point
Leasepricing
Securelease.net
Seismiq
Statementone.com
Sumnat.com
thoughtworks.com
TRUSTe.org
www.visioncommerce.com

Main Site: http://www.leasingnews.org/elease.htm

We have asked Tabitha leasing for information for the eLease page.

Note: up-grade users may click on the name to go to the software leasing sites.

[Headlines]

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News Briefs----

Senate passes bill authorizing tax on Internet sales

http://www.boston.com/dailynews/070/economy/Senate_passes_bill_authorizing:.shtml

President signs bill approving national registry to block unwanted telemarketing calls

http://www.boston.com/dailynews/070/economy/President_signs_bill_approving:.shtml

Major airlines say war will widen losses

http://www.boston.com/dailynews/070/economy/Major_airlines_say_war_will_wi:.shtml

The fall from hype's peak

(similar to the leasing industry)

http://www.bayarea.com/mld/mercurynews/business/5362851.htm

Conseco Finance sale depends on reaching deal with Fannie Mae

http://www.boston.com/dailynews/070/economy/Conseco_Finance_sale_depends_o:.shtml

[Headlines]