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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 ---------------------------------------------------------------------------------- ---------------------------------------------------------------------------------- Headlines Picture from
the Past—Victor Harris, Esq. CORRECTION:
Commercial Money Center Deadline 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 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 ----------------------------------------------------------------------------------------------
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 .). ### ########################### 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 --- 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 ------------------------------------------------------------------------------------ #### ##################################################### 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. ### ############################################### 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. ######################### ######### ######################### ------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------------------------- 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.
######### ############################################ 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 ################ ############################################### ### ######################################################## 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 ---------------------------------------------------------------------------- ############### ############################# 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 ### ################################################### 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 ########## ########################################### -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.
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 __________________________________________________________________ ________________________________________________________- E-Mail Removal Form: \http://65.209.205.32/LeasingNews/removalform.asp +++++++++++++++++++++++++++++++++++++++++++++++++ Subscribe, Unsubscribe, Make Changes E-Mail. You may subscribe
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