Way to Go!!!! S.F. Giants!!!!!               

 

                                       Kit Menkin’s Leasing News

              www.leasingnews.org   Tuesday, October 8, 2002

  Accurate, fair and unbiased news for the equipment Leasing Industry

     Monday’s Leasing News posted www.leasingnews.org  at 10:11am PDT

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Headlines

 

Picture from the Past—Victor Harris, Esq.

 Classified Ads—Jobs Wanted

  CORRECTION: Commercial Money Center Deadline

  "Boom Boom"  Umbrage

    Leasing Industry Application Approval Rate Increases

       Semiconductor Industry Leasing Trends--ELFF Study

        Late Registration Procedure ELA S.F. Conference

          White House moves toward intervention in port dispute

          

             BiT  Web Group Joins ELA

               UAEL San Diego Conference--additional reports

                 American Bank Announces the Opening of a Leasing Division

                  Technology Stocks in Silicon Valley-Ron Bannerman

                    Symbol Tech Chooses Key Equipment Finance

 

   Special: Streamline Sales Tax Conference

               by Dennis Brown, Equipment Leasing Association

 

### Denotes Press Release

 

 

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  Pictures from the Past

1993

Victor Harris, Esq.

“It’s a Hit!”

             

 

 

Classified Ads---Job Wanted

 

Contract Administrator: Chicago/Naperville

18+ years experience in leasing US/Europe, as both lessee and lessor. Am versatile and adaptable to lessee, lessor, or lender career opportunity. Chicago relocation desired. Email:kris_k11@yahoo.com

 

Finance: Orange County, CA

CFO/Controller/IT Director - 15 years experience in leasing and ABL. Experienced in: Accounting, Finance, Systems, Tax, Operations, Securitizations, etc.MBA, ELA member. Many accomplishments. Email:gosween@cox.net

 

Funding: Portland, OR

23 years experience in equipment leasing. Specialty is documentation. I have my CLP and have been active in all aspects of the leasing industry. Email:donreneejohnson@juno.com

 

Senior Management: Chicago,  IL

Sr. biz leader/ 20 years exp. in vendor leasing seeks challenging position w/strong Chicagoland area lessor. Excellent business development, sales/vendor management exp./ solid references available. Email:unemployed_in_illinois@yahoo.com

 

 

  for full list, please go here:

 

http://65.209.205.32/LeasingNews/JobPostings.htm

 

 

____________________________________________________

 

CORRECTION: Commercial Money Center Deadline

 

Deadline for filing for claims for Commercial Money Center has been

extended since the proceedings were converted to  a Chapter 7.  The CURRENT attorney is Bradley Shraiberg and his phone number is 561.395.0500.  He is the contact until a further motion is filed to have him removed (he said for geographical reasons, as it is now moving to the Southern District of California Bankruptcy court in San Diego .).

 

 

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“Boom Boom”   Umbrage

 

 

Congratulations to Betty Kerhoulas! Its about time this organization had the

guts to vote a woman in as President but I was disappointed by the nickname

she was being called under the "top gun" excuse. I don't know about anyone

else out there...no I have not lost my humor ....what I have lost is my

respect for the men who run UAEL for giving her the nickname "boom boom".

 

 I didn't hear any derogatory nicknames for the men...unless it was referring

to their golf game.  I noticed quite a lot of smart, educated,

successful fabulous women at the conference and know of many more that were

absent...I was very glad to see Marci Kimball of ACC Capital, another woman, on the  UAEL board.

 

I serve on the ELA (Equipment Leasing Association) board, which has a number of women, I was on the EAEL (Eastern Association of Equipment Lessors ) board...again they have always had a number of women.  We weren’t addressed

as “Boom Boom”. It appears that the old boy network is still hard at work. I hope Betty can...I believe she will do a great job...lets hope that more women will be right behind her.

 

 Good luck Betty! In the words of our morning speaker..you are intelligent, interesting, and fabulous!

 

Sincerely,

Deborah J. Monosson

President

BOSTON FINANCIAL & EQUITY CORPORATION

20 Overland Street

Boston MA 02215

617-267-2900 Tel

617-437-7601

http://www.bfec.com

debbie@bfec.com

 

---  

 

Congratulations to Bette Kerhoulas, CLP.  I am very confident that she

will lead UAEL through the very tough road ahead.  She is intelligent,

successful, thoughtful, courageous, and dignified.  She is a beautiful

person. 

 

Shame on the 3 UAEL men that allowed her to be referred to as "Boom

Boom" at the UAEL conference.  Wake up Gentlemen, and I use the term

loosely, this is not 1962.  Your lack of respect is despicable.

 

Ginny Young

ginnyyoung@bravacapital.com

Brava Capital

Orange CA

 

 

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Leasing Industry Application Approval Rate Increases, According to Equipment Leasing Association Study

 

 

Annual Survey Shows 10 Percent Increase In Business Booked Or Funded And Brokered

October 3, 2002—Arlington, Virginia—The Equipment Leasing Association’s (ELA) 2002 Survey of Industry Activity (SIA) report results reveal that 71 percent of commercial lease applications submitted in 2001 were approved, with 54 percent booked and funded or brokered. Comparatively, in 2000, lessors reported 68 percent of applications submitted were approved and 44 percent was booked and funded or brokered.

 

 The annual SIA provides a comprehensive look at the leasing and finance industry and tracks major performance measures for leasing and finance operations. “The survey results demonstrate that equipment lessors continue to strive to service businesses needs for equipment finance,” said Michael Fleming, ELA president. “A 10 percent increase in bookings or funding is significant. At the same time, while approval rates are up, delinquency and write-offs remain extremely low and steady.”

 

According to survey results, the 2001 average write-off is just 0.8 percent of the average net lease receivables balance and more than 97 percent of average receivables were current (less than 30 days). In 2000, 96.3 percent of average lease receivables were current and the average write-off was 0.7 percent.

 

Other ELA 2002 survey results highlights:

 

*27 percent of leases were renewed by the original lessee.

 

*The most widely used remarketing method to dispose of equipment at the end of the initial lease term was equipment purchased by the original lessee at 54 percent.

 

*The industry as measured by survey respondent activity grew to $114.6 billion in new business volume versus $112.7 billion in the previous year, a 1.6 percent increase.

 

*Industry ROA was 1.6 percent in 2001 (down a shade from 1.7 percent in 2000) and ROE was 13.7 percent (down from 14.7 percent).

 

ELA survey results were compiled from responses from 134 companies in one of four market segments that were determined based on the typical transaction size of a majority of their lease volume. The 2002 survey participation rate was significantly higher than in recent years, and the mix of respondents varied to a greater degree from past surveys. The four market segments include: micro-ticket (transactions less than $25,000), small ticket (transactions between $25,000 and $250,000), middle market (transactions between $250,000 and $5 million) and large ticket (transactions greater than $5 million). In addition, the data is analyzed and presented by the category of respondent organization: bank, independent or captive, and specific industry sector such as: transportation, agriculture, computers, furniture, medical, and telecommunications.

 

. For more information on the leasing industry, visit ELA online at http://www.elaonline.com or check out ELA’s informational portal for financial decision-makers at http://www.leaseassistant.org.

 

Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association representing companies involved in the dynamic equipment leasing and finance industry. ELA's mission is to promote the leasing industry as a major source of funds for capital investment in the United States and abroad. ELA maintains an informational portal for financial decision-makers at http://www.leaseassistant.org. Headquartered in Arlington, Va., ELA has more than 800 member companies and a staff of 27 professionals. Equipment leasing is estimated to be a $244 billion industry in 2002. Visit ELA online at http://www.elaonline.com.

 

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      Semiconductor Industry Leasing Trends Reported In Equipment Leasing and Finance Foundation Study

 

             Survey Identifies Semiconductor Firms Most Likely to Lease and Why They Choose Leasing

 

                                                        

 

 Arlington, Virginia--The Equipment Leasing and Finance Foundation, a non-profit organization dedicated to  enhancing recognition and understanding of equipment lease financing, today released the results of a new study, Trends in the

Semiconductor Manufacturing Industry.  The study contains conditions unique to the semiconductor manufacturing and equipment industries that influence the use of lease financing, and projections of future industry leasing.

                                                    

  The study found that the types of semiconductor manufacturing firms most likely to lease equipment are firms operating at the “bleeding edge” of technological development, new entrants, and less-diversified manufacturers that can benefit from leasing’s ability to conserve cash, protect against technological obsolescence, and provide equipment disposal/reallocation.

           

 

    “Survey respondents agreed that leasing facilitated entry into semiconductor manufacturing, which suggests that demand cycles  may be exacerbated by leasing,” said Lisa Levine, executive director of The Equipment Leasing and Finance Foundation.

     “Respondents generally agreed that leasing aided expansion of production capacity during industry demand peaks.”                                                        

 

The study also addresses the major reason firms choose to lease, the types of semiconductor equipment most likely to be leased,  the barriers lessors encounter when leasing to this market, and the market’s e-commerce activity.

                                              

 According to the study, the most important cause of expanded equipment leasing in the semiconductor industry is the increasing cost of new fabrication facilities. Other factors include the rapid rate of technology obsolescence, the need to conserve cash and   rapid expansion capability during peaks in demand.  However, issues affect the ability of equipment lessors to operate in the  semiconductor market; these include the ability to estimate residual values of equipment, access to intelligence regarding future technological developments, and the desire to maintain a diversified portfolio.                                                      

 

 “The semiconductor manufacturing industry poses tremendous financing challenges to participating firms,” said Levine. “The Foundation study provides an overview of variables that affect financing and the ways semiconductor firms are addressing them. The information is a valuable competitive tool for finance companies.”                                                    

 

The types of semiconductor equipment most likely to be leased are state-of-the-art and less-customized equipment.  Yet, again,  difficulty in predicting residual value was identified as a critical barrier to the leasing of certain equipment classes.                                        

 

    Survey findings show that e-commerce will play a larger role in the semiconductor manufacturing industry in the future.

 

  “Preliminary equipment survey respondents agreed that the Internet makes it easier for their firms to find buyers for their used equipment,” said Levine.

                                                     

 

“Eight percent of the 64 survey respondents stated that they were selling used or refurbished equipment over the Internet, and 20  percent plan to do so in the next three years.  Eleven percent are using the Internet for online maintenance of customers’s equipment, and 20 percent are developing the technology to support this process.  Eight percent are monitoring their customers’ equipment online, and 22 percent plan to begin online monitoring within the next three years.”

 

                                                       

http://www.leasingnews.org/PDFFiles/Semiconductor.pdf

                                                       

Other free reports are available at: http://www.leasefoundation.org.

 

 

 Organizations seeking more information about leasing, including the questions to ask before signing a lease and help in finding a leasing company, should visit www.LeaseAssistant.org.

 

                                                       

                             About The Equipment Leasing and Finance Foundation

 

   The Equipment Leasing and Finance Foundation is a 501c3 non-profit organization established in 1989 by the Equipment Leasing Association of America (http://www.elaonline.com).  The Foundation develops and promotes the body of knowledge to enhance recognition and understanding of equipment lease financing.  The Foundation’s strategic objectives are to maximize the

role that equipment leasing plays in the world economy, and to be the prime developer and disseminator of a body of knowledge  of the leasing industry.  Visit the Foundation online at http://www.leasefoundation.org.

 

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Late Registration Procedure ELA S.F. Conference

 

Equipment Leasing Association San Francisco Conference

October 13-15 San Francisco Marriott 55 4th Street, 777 Market Street (same location)

 

                                  “Mail In” Registrations Closed.

 

"Please note that non-member registration is welcome, but is only available to a person who has not previously attended the ELA convention or to a person from nonmember company that has never sent an attendee. The deadline for mail-in registration forms is October 3. Individuals who want to register or make substitutions after that date can do so on-site."

 

http://www.skyscrapers.com/english/worldmap/building/0.9/118782

 

http://www.elaonline.com/events/2002/annconv/schedule.cfm

 

 

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White House moves toward intervention in port dispute

 

by Rene Tankersley

   landlinemag.com

  The Official Publication of the Owner-Operator

              Independent Drivers Association

 

The White House issued a press release Monday announcing President George W. Bush's first steps toward possible intervention in the West Coast ports' lockout. Under the Taft-Hartley Act, the president will convene a Board of Inquiry to examine the work stoppage at the West Coast ports.

 

A Board of Inquiry is part of a framework established by Congress to address labor disputes that threaten national health and safety.

 

"The dispute is a threat to America's national health and safety," the press release stated. "The health of our economy in every corner of America is in jeopardy because of the dispute."

 The board will make a quick assessment of the economic damage and determine whether the two sides are negotiating in good faith. Its formation was required under the law before the president can order an 80-day cooling-off period that would force longshoremen back to work.

 

Read the complete White House press release at: www.whitehouse.gov/news/releases/2002/10/20021007-5.html and the President's executive order at: www.whitehouse.gov/news/releases/2002/10/20021007-3.html.

 

 

 

 

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BiT  Web Group Joins ELA

 elaonline.com

 

Boston, MA -Leading web self-service company, BiT Group, announces its’ membership in the Equipment Leasing Association (ELA). As one of the Equipment Leasing Association’s newest members, BiT Group offers valuable and practical solutions to some of the leasing industry’s frequent challenges of providing its’ customers with cost-effective online service and real-time access to their account information.

 

“The ELA serves as a source of education and best practices to the industry and we look forward to active participation” said Ann Cave, BiT Group’s Vice President of Sales and Marketing, “BiT Group’s participation in the ELA will also enable Leasing organizations to learn about our miAccount software and how they can realize benefits by reducing customer service costs through migrating transactions from the call center to the web. ”

 

miAccount, BiT Group’s newest software, is a web self service solution that provides 24/7 service to customers while maintaining secure and reliable transactions. Typical operations include viewing statements online, reviewing payment due dates and account balances, changing or updating customer information, making payments, filling out applications, and cross marketing.

   

About BiT Group

 

BiT Group, headquartered in Boston, MA, is a leading web self-service software company serving Fortune 1000 and mid-market companies across North America. Since 1995, BiT Group has been recognized as a leader in developing solutions for companies that recognize the strategic impact that Web solutions can have on their business. In 2001, BiT Group earned a ranking of #155 on the Inc. 500, Inc. Magazine's annual list of America's fastest growing privately held companies. More information about BiT Group and miAccount solutions can be found at www.bitgroup.com or by calling 617-946-0550

 

Sites of Reference:

http://www.bitgroup.com

 

CONTACT:

Ann Cave

BiT Group

Phone Number: 617-946-0550x264

E-mail: acave@bitgroup.com

 

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UAEL Fall Conference 2002---additional Reports from others who were there

 

 

Indeed your  (Leasing News ) venues ( two workshops with seven Top Gun

“Panelists) were well attended.  Meanwhile some other quality

education was being presented at last weeks (October 4 and 5 ) UAEL Annual Convention

 

Steve Jenkins and Jim Coston presented an excellent and practical class on

"Making and responding to demands to purchase brokered or assigned leases."

Being attorneys, they presented this from the standpoint that we

(brokers/discounters) have already signed our non-negotiable broker

agreements.  The thrust was on what we can do in our in-house "due

diligence" to prevent the unthinkable from happening.  Their handouts lead us

through the mine fields and added some intelligent cautionary tools to use.

These type of classes easily "pay" for my attendance at UAEL conferences.

No fluff, not Memorex, just the real thing.  My thanks to them for a quality

presentation.

 

Next hour, I thoroughly enjoyed the  Dwight Galloway,CLP  presentation on

offering  (selling) leasing services to "Community Banks".  Dwight has been

thoroughly familiar with the Community Bank world throughout his career.  He

offered the no nonsense approach to effectively selling and then retaining a

relationship with a loan officer that refers you business.  He emphasized

some excellent tools loaded with caution about integrity, stark disclosure

about what we do and how, and maintaining above average communication.  This

resource is not "just another vendor." He amplified dealing with their

constant fears in a super professional manner.  Once again, Dwight really

gave of himself, and as you like to say "really let his hair down."  Thanks

Dwight.

 

The CLP meeting was a high quality gathering of 18 CLPs filled with good

suggestions.  The test is being rewritten.  For the first time since the CLP

Foundation was formed, the new officers will be elected from the entire CLP

Membership this fall, now that the multi-association incubator period is

over.  A review was offered of the structure and functional accomplishments

that have been achieved since UAEL brought the CLP to the entire leasing

community and other trade associations.  The website www.clpfoundation.org

now offers complete information including data on future exam sites, the

mentor program, body of knowledge and is updated every week.  I challenge

all of our leasing community to visit the site, get a mentor if you like,

set a personal goal to study for and take the test this year. Call Cindy

Spurdle, Executive Director, CLP Foundation for further information at

1-610-687-0213.

 

May the wind be at your back.............................

 

George J. Davis II, CLP  (past president, UAEL )

Fortune Financial, Inc.

P O Box 590   Bend, OR  97709

541-388-3187

leasing@aol.com

 

 

 (Thank you. As I stated, could not report on what we were unable to cover.

editor )

----

 

From Jeff Taylor on the UAEL Conference and Golf Tournament

 

(sent to his readership of 14,000 leasing executives )

 

Charles Dickens lived from 1812 -1870 and published The Christmas Carol (starring Ebenezer Scrooge) in 1843. For my article on the UAEL 2002 Conference in San Diego last weekend and my sitting for the Certified Leasing Professional exam, I would like to quote his opening lines (Note from Jeffrey : Please see my substitutions)

 

Old phrase                             New Phrase

 

Jacob Marley                         Old CLP

 

Ebenezer Scrooge                  The Leasing Marketplace

 

Was                                      is

 

His opening lines are as follows:

 

“The old CLP is dead, to begin with. There is no doubt whatever about that. The register of its  burial was signed by the clergyman, the clerk, the undertaker, and the chief mourner. The Leasing Marketplace signed it. And The Leasing Marketplace’s name was good upon 'Change, for anything he chose to put his hand to.

 

“Old CLP was as dead as a door-nail.

 

“Mind! I don't mean to say that I know, of my own knowledge, what there is particularly dead about a door-nail. I might have been inclined, myself, to regard a coffin-nail as the deadest piece of ironmongery in the trade. But the wisdom of our ancestors is in the simile; and my unhallowed hands shall not disturb it, or the Country's done for. You will therefore permit me to repeat, emphatically, that the  old CLP is as dead as a door-nail.”.

 

-----

 

First, let’s talk about the convention. I had a lot of fun. So did the other 240 plus people who attended (official registration was close to 300 but I think that included vendors who had booths).

 

Unlike prior Eastern Association of Equipment Lessor  and Equipment Leasing Association meetings that I attended this year, UAEL (United Association of Equipment Lessors) designed a meeting that met or exceeded everyone’s expectations. For that, I have to congratulate John Kruse of Capital Stream. He was not only innovative in his execution of the program but imaginative and creative when it came to, bottom-line, getting people to attend.

 

The program included two outside speakers who taught me how to listen better and how to deal with people. The admiral (Rear Admiral William E. Newman, US Navy, retired) said something that still resonates in my thoughts:

 

·        Know your job

 

·        Know your people

 

·        Take care of your people

 

I have been reworking his thought and still cannot come up with a better phrase. I guess that is why he made Admiral and I am still a WTBCLP (want to be Certified Leasing Professional).

 

Thursday started out O.K. with my sitting in on a CLP Test Review Class. The morning lecture, conducted by Bob Teichman went well. The afternoon session was conducted by a gentleman who, in my mind, did not have the proper credentials to lecture to me. I queried the other students who told me that I was overreacting, which is common. Nonetheless, I still felt the need to return to my room and study on my own.

 

UAEL hosted a cocktail party that evening and the food, drink, company, and view were spectacular. San Diego has some great charm. Four days of perfect weather. It really is amazing how nature adapts to its environment. Throw a piece of bread down in Central Park and the squirrels will attack the robins who attack the ducks to get a piece of the action. In San Diego, throw a piece of bread in the water and they all take turns at the bar.

 

Friday morning and afternoon turned to vendors. I like what John did by having no competition against the vendors. Vendors were excited to see so many people and get a lot of leads. Unfortunately, prospects were more interested in the sun in the afternoon so I filled up vendor time with asking them how they felt about the economy. Most of them were optimistically hopeful.

 

At the workshop on Saturday morning, I talked about leadership and how to deal with change in this bottomless economy.

 

At the end of the day I sat in the hotel lobby of the Sheraton Marina and spent quality time with Ken Goodman, CLP, and John Haas, CLP (former partners, still now good friends. editor) who helped me analyze the upcoming exam. (Note from Jeffrey : Ken and John are bright, a pleasure to listen to and make me laugh). Bob Teichman, CLP, Steve Geller, CLP, Andrew Alper,CLP,  Bob Baker, CLP, Jim Lahti, CLP (president of the CLP Foundation ) and John Kruse, CLP ( CapitalStream/SanDiego Conference Chairman ), stopped by to rattle my nerves. At one point, Ken said that he was putting together a syndicate to publish an ad in the Wall Street Journal if I failed. I told him that his business would double if I didn’t pass.

 

((Note from Jeffrey: Cindy Spurdle ( CLP foundation executive director ) cannot be spiffed.) )

 

Sunday Morning

 

After having taken a sleeping pill the night before, I wake up at 6:00 A.M. I missed most of the Saturday night party except for two light beers and some great conversation. But I felt the need to go to bed early in order to prepare myself for, what I believed, was going to be an elevator ride to hell.

 

After a high protein, low carb breakfast, and a quadruple shot of expresso, I was ready to attack the exam.

 

After 6 hours of tests plus four 10-minute breaks, my fingers fell off my hand. I do not remember the last time I was that emotionally and physically exhausted.

 

I felt the exam was fair, yet tough. Complex yet appropriate. Balanced and professional. They tell me that I will hear in 6-8 weeks since the exam is graded in parts by different CLPs member throughout the U.S.

 

 

My attitude towards CLP has turned 180 degrees. Why? I credit one man and one man only. His name is Jim Lahti, CLP (foundatioin chairman). I do not know him well. But, he convinced me that I needed to help the CLP become more professional and more up-to-date. I spent time with Cindy Spurdle and Nancy Geary, who is on the CLP rewrite committee and learned about what happened to CLP over the years. In one way, it is a shame. In another way, I believe, that you have to fail before you become successful.

 

I plan to participate in helping develop the new exam and encourage others to do so as well.

 

I heard that we have 232 CLPs to date and that we need to reach 500 before we get Mike Fleming (president)of ELA to see its value. Ken Goodman told me that he sees tremendous growth in CLPs if our industry gets regulated.

Hindsight is everthing. I tell people that there is no concept called truth, only perceptions. Maybe I was wrong. Maybe I was nervous. Maybe I was just being myself (Note from Jeffrey : some people think I am arrogant. I have a hard time believing that) . Nonetheless, I am glad to have it behind me and plan to replevin back to my former life as a pariah. Although, I hope to ex parte at the next UAEL Spring event in Palm Springs.

 

(Final note from Jeffrey: UAEL provides two free drink tickets for events and then starts charging for drinks. I am willing to pay anyone 50 cents for drink tickets - no questions asked).

 

Editor’s  Note: the first speaker not mentioned  but referred to in this article was Scott Hunter, www.relationshipis the key.com. For the full story and complete

newsletter from Jeff Taylor, please go to:

 

Complete Newsletter from Jeff Taylor, please go to:

 

http://www.leasingnews.org/articles.doc/Newsletter_10-7.htm

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American Bank Announces the Opening of a Leasing Division

 

 

SILVER SPRING, Md--American Bank (OTCBB:BKMD) Silver Spring, Maryland, announced today the formation of a leasing division in Charlotte, North Carolina.

 

American Bank has hired Chuck Ledford and Terry Foy to staff the newly formed equipment and vehicle Leasing Division to be headquartered in Charlotte, North Carolina.

 

Mr. Ledford has over 31 years of experience in the equipment and vehicle leasing field, in the North Carolina market, particularly, the Charlotte market. Previously he was an Executive Vice President of Park Meridian Bank, located in Charlotte, North Carolina and President of that bank's leasing company.

 

Ms. Foy has been in the leasing field since joining Mr. Ledford in 1985 at First Charlotte Bank. Ms. Foy was most recently a Vice President of Park Meridian Bank in charge of lease operations and administration.

 

American Bank has been active in real estate financing in the Charlotte, North Carolina area for over four years.

 

Phillip Bowman, President and CEO of the Bank, stated that the opportunity to have two such experienced leasing professionals join our company was the deciding factor in our decision to move forward with a new product line and headquarter the leasing operations in Charlotte, North Carolina.

 

 

CONTACT:

 

American Bank

Phillip C. Bowman, 301/572-3740

 

 

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Technology Stocks in Silicon Valley

 

Don't know if you caught this, but Dan Gillmor expresses what many of us

professionals feel who have worked hard and ethically, only to see our

retirement investments tank.  With a government run by ex-CEO's I'm not

optimistic (remember when we all thought bringing experienced business types

into government would solve all our problems?).  I've been in Silicon Valley

leasing for over 25 years, starting HP's first programs (long before Carly

killed "the HP Way").  I guess I'm getting old, but it is better losing

sleep over declining investments than worrying if I'll get caught cooking

the books.

 

Ron Bannerman

ePlus, inc.

rbannerman@eplus.com

 

 

 

 

DAN GILLMOR ON TECHNOLOGY

San Jose Mercury-News

E-mail Dan at dgillmor@sjmercury.com

_____________________________

 

There's progress in crackdown on corruption, but stay cautious

 

 

If your disgust level has been rising over the corruption in the

 equities markets, last week should have been mildly

 satisfying. You witnessed a parade of criminal charges,

 scathing reports and fury from people in a position to

 do something about the sleaze.

 

But if you have retained the skepticism you need in

 today's world, you'll remain cautious. Too many powerful

 people in this country still act as though the rules don't

 apply to them.

 

The Enron scam produced the highest-ranking indictment,

 as the company's apparently larcenous former chief

 financial officer, Andrew Fastow, showed off his new

 handcuffs. When will the top dogs get theirs?

 

Global Crossing Chairman Gary Winnick, who cashed

 out hundreds of millions while his company was going

 down the tubes, offered what amounted to a tip to the

 people -- the workers -- who lost everything. Apart from

 its cynicism, his gesture impressed no one.

 

The smell of criminality got a whole lot closer to Martha

 Stewart, as her broker's assistant copped a plea. He

 told a story that, if true, shredded her explanation for

 suspicious stock trading.

 

The smell of greed -- and maybe something worse --

 again wafted over Silicon Valley, the epicenter of the

 1990s bubble. Top executives from eBay and Yahoo,

 which did investment-banking business with Goldman

 Sachs, were shown to have gotten IPO shares in hot

 companies.

 

I felt a little sick to my stomach when I saw that eBay's

 Meg Whitman and Yahoo's Jerry Yang were among the

 recipients. I had thought better of both. Maybe their cozy

 stock deals avoided a legal quid pro quo, but they were

 the actions of people who apparently felt a sense of entitlement.

 

I don't equate them with people like Fastow or even Stewart.

 But they, like so many others who must have assumed it

 was their due to catch quick IPO profits on top of their

 already mind-boggling wealth, are part of a club.

 

There have been clubs like this in the past. But the culture

 that erupted in the '90s was special. It combined greed and

 indifference. It poisoned the system.

 

The rules -- the old ones, anyway -- applied to other people

 who weren't smart or bright enough to get into the club. And

 for those who had made it, their special rules guaranteed more

 of the same, at least so long as the bubble continued to inflate

 and the cops slept on the job.

 

I drew some encouragement last week from the Republican

 chairman of the U.S. House Financial Services Committee,

 Michael Oxley of Ohio, who blurted some obvious truth.

 There's ``no equity in the equities market,'' he told reporters

 when the Goldman Sachs gifts were disclosed.

 

Given Silicon Valley's prominence in the bubble, you have to

 wonder how many more unsavory disclosures -- or handcuff

 fittings -- are coming. But if the army of investigators, public

 and private, continues to press ahead with the unraveling of the

 daisy chains of '90s insider dealing, we're nowhere near finished

 with the disclosures and indictments.

 

New York's attorney general, Eliot Spitzer, has been by far the

 most aggressive official at any level in pursuing the wrongdoers.

 Now he has agreed to coordinate pursuit of Wall Street's

 rampant, persistent conflicts of interest with the federal

 officials who winked at everything for so long. Let's hope

 he helps turn a former lapdog into a real watchdog, not

 that they end up defanging him.

 

Even the once-indifferent feds are showing more spine, I

 have to admit. Consider Fastow's indictment, coming after

 a plea agreement with an Enron official lower on the corporate

 ladder. It suggested that many of us have been wrong to

 assume that the Bush administration was letting its close

 ties to Enron -- including the continuing employment of a

 former company executive as Army Secretary -- get in the

 way of the investigators.

 

I still don't think, however, that the people in charge of our

 economy fully grasp the degree to which the bad actors

 poisoned the trust of everyday people. It will take far more

 than some indictments, or the hauling of miscreants before

 congressional committees, to restore faith.

 

########### ##########################################

 

SYMBOL TECHNOLOGIES SELECTS KEY EQUIPMENT FINANCE

AS LEASING PARTNER

 

SUPERIOR, Colo. ­ Symbol Technologies, Inc. (NYSE: SBL),

the world leader in rugged mobile and wireless computing, announced today

that it will expand the financing options it currently offers to its

end-user customers in the United States through a new relationship with Key

Equipment Finance, an affiliate of KeyCorp (NYSE: KEY) and the nation¹s

sixth largest bank affiliated lessor.

 

The relationship with Key Equipment Finance enhances the equipment financing

options Symbol currently offers through its captive finance program,

SymboLease. By partnering with Key, Symbol can now support the equipment

financing needs of a greater number and more types of customers, including

federal government and other public sector entities.  Additionally, the Key

Equipment Finance partnership will enable SymboLease to offer a wider array

of products and services.

 

"We are committed to providing a total solution to our customers, and

helping them acquire the technologies they need with the right financing

package is an important part of the service we offer," said Cary G.

Schmiedel, vice president and treasurer of Symbol Technologies. "Key

Equipment Finance is a strong financial partner that provides exceptional

service and the ability to tap into products and services of KeyCorp that

will enhance the overall relationship for Symbol."

 

Customers interested in acquiring Symbol equipment can apply for lease

financing through SymboLease. The benefits of an in-house co-branded leasing

program for Symbol end-user customers include one-stop shopping and

financing, equipment upgrade flexibility and better asset management.

 

"Symbol Technologies is committed to providing a total solution for its

customers and recognizes the importance of financing as part of its

full-range of services," said Adam D. Warner, president and COO of Key

Equipment Finance¹s express leasing services unit. "Now, Symbol customers

can maximize their budgets more effectively by leveraging Key¹s low cost of

capital through the SymboLease program."

 

About Symbol Technologies

Symbol Technologies, Inc. (NYSE:SBL), founded in 1975, is a global leader in

secure mobile information systems that integrate application-specific

hand-held computers with wireless networks for data and voice and bar code

data capture. Symbol products and services increase productivity and reduce

costs for the world's leading retailers, logistics and transportation

companies, government agencies, manufacturers and providers of healthcare,

hospitality and security. More information is available at www.symbol.com

and +1.800.722.6234 or +1.631.738.2400.

 

About Key Equipment Finance

Key Equipment Finance is an affiliate of KeyCorp (NYSE: KEY) and provides

business-to-business equipment financing solutions to businesses of many

types and sizes. They focus on four distinct markets:

- businesses of all sizes in the U.S. (from small business to large

corporate);

- equipment manufacturers, distributors and value-added resellers worldwide;

- federal, state and local governments as well as other public sector

organizations; and

- lease advisory services for manufacturers¹ captive leasing and finance

companies.

Headquartered outside Boulder, Colorado, Key Equipment Finance oversees an

$8 billion equipment portfolio with annual originations of approximately $3

billion. The company, which operates in 25 countries and employs more than

600 people worldwide, has been in the equipment financing business for

nearly 30 years. Additional information regarding Key Equipment Finance, its

products and services can be obtained online at KEFonline.com.

 

Cleveland-based KeyCorp is one of the nation¹s largest bank-based financial

services companies, with assets of approximately $83 billion. Key companies

provide investment management, retail and commercial banking, retirement,

consumer finance, and investment banking products and services to

individuals and companies throughout the United States and, for certain

businesses, internationally. The company's businesses deliver their products

and services through KeyCenters and offices; a network of approximately

2,400 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web site,

Key.com, that provides account access and financial products 24 hours a day.

 

 

CONTACT: Cori Keeton

         Barnhart/CMI

         (303) 626-7248

         corik@barnhartcmi.com

 

########## ###########################################

 

 

-Special Report-

 

 

Streamline Sales Tax Conference

 

  by Dennis Brown, Equipment Leasing Association

 

             (plus---the latest working draft of the Streamlined Sales and Use Tax

                 Agreement. )

 

 

The National Conference of State Legislatures (NCSL) Executive Committee

Task Force on State and Local Taxation of Telecommunications and Electronic

Commerce (Task Force) met for a full day review of the Streamlined Sales

Tax Project (SSTP or Project) on Friday, October 4.  The Equipment Leasing

Association (ELA) made a presentation on the need to revise sourcing

language in the Interstate Agreement with a lease sourcing amendment.  The

NCSL Executive Committee received a report on Task Force activities on

Saturday, October 5. The Task Force will next meet in Washington, D.C. on

Wednesday afternoon, December 11. 

 

This report will cover:

 

- Lease Sourcing

- Implementing States Will Approve Agreement on November 12

- Rounding

- Non-Sales Tax States Raise Questions

- Can The Private Sector Serve On The New Governing Board?

- Business Activity Tax (BAT)

- 2003 Strategy

 

Lease Sourcing

 

A presentation to the NCSL Task Force by ELA accentuated the need to revise

current sourcing language in the Agreement with a lease sourcing amendment.

 The prospect of revenue loss to states was coupled with an explanation of

the procedural difficulties that prevented a vote on the leasing revision

at the last SSTP meeting.  Efforts to place the leasing provision on the

Implementing States agenda in November was explained with a request that

Task Force members serving as Implementing States Delegates support the

lease sourcing amendment.

 

Implementing States Will Approve Agreement on November 12

 

NCSL Task Force members are gratified that Implementing States will take a

final vote on the first installment of the Interstate Agreement on November

12.  It will take a 3/5 vote to approve the final Agreement.  States gain a

vote at Implementing States by enacting either the Uniform Sales and Use

Tax Administration Act (drafted by SSTP) or the Simplified Sales and Use

Tax Administration Act (drafted by the NCSL Task Force), or a hybrid of the

two.  35 states had officially joined the Implementing States through

legislative enactments as of September 15. 

 

The 35 states that have enacted Implementing States legislation and send

voting Delegates to meetings are Alabama, Arizona, Arkansas, District of

Columbia, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana,

Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New

jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South

Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,

Washington, West Virginia, Wisconsin and Wyoming. 

 

Both houses in the Massachusetts Legislature passed Implementing States

legislation this year but it fell victim to a line item veto.  Another

effort will take place with a new Governor next year.  Additional states

expected to make similar attempts next year include New Mexico and Idaho

with some discussion of raising the issue for preliminary consideration in

New York.

 

When will the new Streamlined System be effective? Minnesota, North

Carolina, South Dakota and Wyoming have already adopted the Interstate

Agreement.  Enactment by 5 more states and the District of Columbia will

trigger implementation if those states meet the established population

threshold after reaching the July inaugural time frame.  The District of

Columbia has been afforded the same status as a state in regards to the

Agreement.

 

Rounding

 

It is the consensus of the Task Force that Implementing States have another

vote on the rounding rule on November 12.  Several state legislators

criticized the procedure employed wherein a vote was called at the

conclusion of the last Implementing States meeting after a number of

delegates had departed. 

 

A request by Maryland to have the Task Force reaffirm a vote taken last

year in Savannah that recognized the need for multiple rounding rules was

rebuffed.  The Task Force decided not to take a policy position at this

time but rather call upon Implementing States to revisit the issue next

month. Maryland emphasized the inability to round up would make the revenue

loss too great for the State to join the Streamline system.  Some suggested

that Maryland enactment of the Agreement require implementation occur only

after congressional endorsement.  Thus, the infusion of revenue from remote

sellers would far exceed any losses from a single rounding rule.

 

Non-Sales Tax States Raise Questions

 

Legislators from Delaware and New Hampshire engaged Task Force members in

discussion of the impact Streamlined Sales Tax will have on non-sales tax

states.  From the perspective of Delaware and New Hampshire, they were

recipients of good news and bad news.  From the viewpoint of the majority

of states imposing sales tax, the news is not bad because non-sales tax

states will retain their current market advantage gained from consumers in

neighboring states crossing the border to make tax-free purchases.  Reality

seemed to be in the eyes of the beholder.   

 

Discussion centered on the marketplace that would be enforced if and when

Congress approves the Agreement.  In this new environment, over the counter

sales in non-sales tax states to consumers from neighboring sales tax

states would be untouched.  Jobs at businesses strategically located at

state borders would be unaffected. The impact on retailers in the 5

non-sales tax states that ship product into the 45 sales tax states is what

enlivened the exchange.

 

At this time, observers presume main street retailers; catalog and Internet

sellers will only be required to collect sales tax for states joining

Streamline if that seller exceeds a congressionally mandated minimum amount

of annual sales. The exchange between Task Force members primarily centered

on a "brick and mortar" retailer in a non-sales tax state that exceeds this

threshold and has a store located on the border to attract consumers from a

neighboring sales tax state.  Since I am a resident of the sales tax state

of Maryland and I've on occasion made back-to-school purchases for the kids

in sales tax free Delaware, I will use the rivalry between Maryland and

Delaware as my example.  

 

Task Force members from sales tax states told Delaware and New Hampshire

legislators that congressional endorsement of the Agreement mandating

collection of sales tax by remote sellers for Streamline states will not

impact a Maryland resident crossing into Delaware for over the counter

transactions.  Although legislators from Maryland, Pennsylvania, Vermont

and Maine displayed exasperation over revenue lost to Delaware and New

Hampshire, they agree it is a state rights issue justly protected.

Streamline maintains status quo that requires the civic-minded Maryland

consumer to voluntarily declare tax and magnanimously remit tax to their

home state. I was relieved that my periodic tax-free shopping sprees during

summer at the beach in Delaware would be preserved.

 

Task Force members said the transaction would be handled differently if I

decide to have the Delaware retailer ship the purchase back to my home in

Maryland and that retailer exceeded the congressionally mandated minimum

threshold of annual business.  The same is true for books shipped from the

warehouse built by Amazon.com in Delaware or commercial transactions

originating in Delaware from businesses exceeding the threshold if delivery

is in Streamline sales tax states.  Collection of sales tax would be

required although the seller may not have traditional nexus in the delivery

state but the expense incurred by the seller is negligible because a

Certified Service Provider (CSP) handles collection and remittance at no

cost to the seller.  The burden of collection is removed from the seller

and transferred to a third party.  This collection requirement only applies

if the sales tax state has joined the Streamline system.

 

Delaware and New Hampshire legislators asked what penalty could be levied

if the seller in this scenario does not collect tax for the Streamline

state into which it has shipped product to a customer.  The consensus view

was a Streamline state would have the right to move in federal court

against a retailer located in a non-states tax state that refuses to comply

with the collection responsibility. 

 

Delaware and New Hampshire foresaw large states hurting the little guys

with the little guys being non-sales tax states.  Sales tax states felt the

little guy is a main street retailer currently being hurt by unfair

competition from unmerited market advantages presently enjoyed by

businesses in Delaware and New Hampshire shipping tax-free products into

their states.

 

Can The Private Sector Serve On The New Governing Board?

 

Task Force members generally felt governing provisions of the Agreement

would allow some states to include a member of the private sector among

representatives sent to the new Governing Board after the system begins

effective.  Some states would not have a constitutional barrier to

appointing an individual that serves on a legislative or regulatory

advisory body.  A number of states would be precluded from doing so because

persons outside the legislative and/or executive branch may not cast votes

on revenue issues. 

 

Business Activity Tax (BAT)

 

The Task Force reviewed the question of granting protection to business to

prevent their involvement in the Streamlined Sales Tax from being the basis

for states to assert Business Activity Tax (BAT) nexus.  BAT was defined as

taxes imposed directly on a corporation including income, franchise,

business & occupation and gross receipts.  Sales tax on the other hand is

collected from customers on behalf of the states.  This issue will be a

major factor when congress is asked to endorse the Agreement. 

 

2003 Strategy

 

The NCSL Executive Committee met on Saturday, October 5.  They left no

doubt that enactment of the Agreement by state governments and lobbying for

congressional endorsement will be a top priority in 2003.  Republicans and

Democrats reiterated Streamline is a nonpartisan issue that promotes

federalism. They asked the Task Force to develop strong lobbying proposals

when they meet in Washington, D.C. on Wednesday afternoon, December 11. 

These Task Force recommendations will be taken to the NCSL Executive

Committee meeting in Tucson, Arizona on January 24-25, 2003.

 

Dennis Brown

Equipment Leasing Association

 DBROWN@ELAMAIL.COM

 

 Here is the latest working draft of the Streamlined Sales and Use Tax

Agreement.


http://www.leasingnews.org/PDFFiles/NovemberMeetingWorkingDraft.pdf

 

 It is being

circulated for comment by Scott Peterson, Business Tax Director, South

Dakota Department of

Revenue.  He will incorporate needed revision brought to his attention and

hopes to forward to

Delegates in mid-October prior to the Implementing States meeting scheduled

November 12.  Comments

can be sent to him at Scott.Peterson@state.sd.us

 

All of the style and form changes are fully incorporated.  The Philadelphia

changes are in red and

underlined. Scott Peterson will remove the underlines and red once the

drafting group is satisfied

with the Philadelphia changes.

 

Please note there are two proposed amendments that Implementing States did

not get to in

Philadelphia.  The first would amend the definition of "delivery charges" as

follows:

 

1.  "Delivery charges" means charges by the seller of personal property or

services for preparation

and delivery to a location designated by the purchaser of that personal

property or services

including, but not limited to, transportation, shipping, postage, handling,

crating, and packing.

 

The second would amend the general sourcing rule 309(C) as follows:

 

C.  When subsection (A) and subsection (B) do not apply, the sale is sourced

to the location

indicated by an address or other information for the purchaser that is

available from the business

records of the seller that are maintained in the ordinary course of the

seller's business when use

of this address does not constitute bad faith.

 

In addition, to pondering these proposed amendments, the drafting group

needs to decide what to do

about the vote requirement issue discussed in Philadelphia. There are 28

sections that require the

governing board to take an action.  Section 806 says, "Except as otherwise

provided in the Agreement

, all actions taken by the governing board shall require an affirmative vote

of a majority of the governing board."  Sections 804, 809, 901, and 902

require an action by the governing board that needs a 3/4 vote for approval.

Section 804 (compliance) requires a vote of 3/4 of the "entire" board.

 The other three require a vote of 3/4 of the board.  Scott Peterson has

reminded Delegates the rules of statutory construction say that words mean

something and that if "entire" modifies 3/4 in one section, it is a

different vote requirement than the other sections.  Perhaps in the other

sections

 it means only 3/4 of those present, assuming there is a quorum.

 

Scott Peterson would like to have this ready for distribution to the

Implementing States Delegates no later than October 15.  Please have your

comments back to him no later than Friday, October 11.

 

http://www.leasingnews.org/PDFFiles/NovemberMeetingWorkingDraft.pdf

 

 

__________________________________________________________________

________________________________________________________-

 

 

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