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Your
One stop solution for training and reference material for the
Leasing Professional
www.theleasinglibrary.com |
August
11,2004
Headlines---
Classified
Sales----Sales Manager
Archives--Metrolease
Ceasing Operations
Washington
Mutual Exits Equipment Leasing
NorVergence
Customers Unite Against Leasing Companies
Local
Business Papers Pick Up the Story
Lessors…The Construction Leasing
Marketplace
DVI
Recoveries Show Promise---ABSnet
Cornerstone
Software Helps Bay4 Capital with Comdisco
######## surrounding the article denotes it is a “press
release”
Note:
No new two week ”Help Wanted”
Classified ads will be posted after Next Monday until September 8th
due to no publication “Labor Day” week. Kit Menkin will be on vacation. If you want to post
a “help wanted ad,”
please do before the end of this week.
-------------------------------------------------------------------------------
|
|
Classified
Sales----Sales Manager
Atlanta,
GA
30 years in transportation Finance with strong management/ sales background. Represented company on national & region markets. Started two successful operations- produce profits and growth.
Email:
pml@mindspring.com
Chicago,
Illinois
Twenty
plus years. Senior sales and marketing management most recently Building
"businesses" from scratch. Leveraging leadership, administrative,
operations, financial, auditing background. WANTED: challenging new
opportunity.
Email:
edok@sbcglobal.net
Dallas/Fort
Worth, TX.
Domestic-int'l exp. Small to middle ticket. 24 yrs with Fortune 500 firms(2). Consistently achieves margin/ volume goals.
Email:
mfdp1101@charter.net
New
York, NY
I have over 25 years owning an independent leasing company that specialized in truck leasing. Tow trucks, Limos, ambulances, tractors, etc..
Email:
rfleisher@rsrcapital.com
Pennsauken,
NJ.
17 Years Leasing in all capacities from CSR and Collections to National Sales Management and Vice President Vendor Development. Exceptional People Skills. Many industry references.
Email:
cherfurth1@aol.com
Portland, OR.
18+ yrs w/bank leasing company. Supervised 14- 20 sales people. Willing to relocate for the proper position.
Email:
pthygeson@netscape.net
Seattle,
WA
Senior level sales professional w/ (20) plus experience in mid market financing & leasing. The last (8) plus years being self employed in middle market brokerage.
Email:
markhenley@qwest.net
Full Listing: http://64.125.68.90/LeasingNews/JobPosting.htm
If you are seeking a job, you may post a “free”
ad at:
http://64.125.68.90/LeasingNews/PostingForm.asp
-------------------------------------------------------------------------------
Archives—August
11,2000--Metrolease Ceasing Operations
John Blazek, former vice-president, Metrolease
“This
story has been floating around the internet for several months with
both UAEL (United Association of Equipment
Leasing)
and NAELB (National Association of Equipment
Leasing
Brokers ) Standard Committees
looking into alleged charges of "double funding" allegedly
between Lasalle Bank and Textron; alleged leases not being funded and
brokers not receiving commissions. No one has wanted to go on the record
about what is going on, and Metrolease has never returned e-mail, telephone
calls, or faxes regarding this. The rumor was the company would be going
out of business.
“This
is from a highly regarded funding source:
"’
I spoke to John Blazek last week and confirmed that they are closing
down operations and are running under a skeleton crew. The owner has
already begun the operations of another company operating as a funding
source....name has not been disclosed. John will help close operation.’
“John
Blazek is the vice-president of the company. He formerly was president
of Stratford Leasing, which he also closed down.”
--------------------------------------------------------------------------
Washington
Mutual Exits Equipment Leasing
As
reported by Leasing News last December in the Washington Mutual
Financial
Corporation purchase by Citigroup
there would not only be cuts in branches but
products, such as leasing. It was competing in the
$250,000
to $15,000,000 market place.
A news
“sales manager” was hired along with salesmen in
key states,
but it was not long that they ran into a wall.
Leasing
News was not able to obtain a comment at the
time,
or recently, as it was reported they were in trouble
making
deals.
The
Citigroup press release December 2nd,
2003 on the purchase
of
the Financial Corporation:
“Operational
synergies include some branch consolidation (about 30% of branch closures),
funding cost benefits and enhancements to centralized processing systems.
Processing enhancements will result from a combination of both WAMU
Finance and CitiFinancial practices.
“Citigroup
expects future revenue growth from the acquisition by targeting an attractive
group within nonprime markets and stronger pricing. Integration risk
is low given the expertise previously demonstrated by Citigroup. “
The
release of salesmen, several who have advertised
in
Leasing News classified ads, was an indication that
the
leasing department was also going to go “bye-bye.”
They were reportedly not competitive in speed, credit
comfort,
and
pricing in the marketplace they chose, according to reliable sources.
Washington
Mutual states the closure of the 53 commercial locations will occur
between August 20th and October
29th
with
from 850 to 1,000 employees let go.
The following
14
states are affected: Arizona, California, Colorado, Florida, Georgia,
Idaho, Illinois, Nevada, New Jersey, New York, Oregon, Texas, Utah and
Washington
 MARKETING INDIRECT ORIGINATION: New York. One of the largest ind. equip.lessors needs motivated, self-starter to purchase single investor leases from institutional investors; min.transaction $1 million; portfolio of primarily investment grade lessees/good "story credits". Min 3 yrs exp. sourcing/ originating leasing transactions, knowledge of credit and pricing. E-mail: jobposting1@leasingnews.org |
-------------------------------------------------------------------------------
NorVergence Customers Unite Against
Leasing Companies
by
Christopher Menkin
“...
the sales scheme we were given; they sell systems and services... Now
all we need to do is tie them both together in the lease agreement which
is what I was told by the salesman. The two payments; one to NorVergence
was for the cell phones; and the other to the leasing company which
was for the Matrix and the T1 services with data, etc. it may not be
what the leasing companies were told; but it surely was what my company
was told...
....
I know the numbers are growing here in North Carolina and I do
believe this is a nation-wide scandal of which we have never seen. Sure
the leasing companies are at a loss also; but so are the small businesses
we not only are paying for something that is useless; but all the lost
revenue and time for scrambling to get our services back...”
( “name
with held” )
... I am sure
there will be some type of settlement; maybe when we find the true value
of the equipment; we may have to settle for that as well as the leasing
companies; as I feel it will be hard for any court/judge to make a decision
on a equipment rental that does not have but 1/4th the value of said
equipment; so maybe it will turn out that the companies (us) may have
to eat the actual cost of the equipment and the leasing companies eat
the rest as they too should have done their homework on the true cost
of said equipment???”
(name
with held )
“My first payment is due today. No service, of course. We are Seniors, about to
retire :( and want to do the "right" thing, legally and ethically
and the thing that will be in our favor when the courts rule against
this. If we start the payments, we are in for the full $15,000. They
offered a buy out of $8,440. If we sign those papers, we are locked
in for good.”
( name with held )
“I was contacted by US Bancorp. Our outstanding lease payments
are $41,000. Their first offer to me was to settle for $12,000.
I am hoping to do better if I settle.”
(name with held )
“US Bancorp contacted me today to offer a buyout on our lease agreement.
Our balance of outstanding payments is $67,536.
They offered to settle for $38,000.
I countered with $25,000, and they countered with $30,000.
I told them I would have to discuss with my attorney. My impression is they will take the $25,000
if I stick with it.
“I think this amount sucks, but I am expecting my attorney to tell
me that this is probably the least damage I can expect. The cost of a lawsuit would easily exceed $25,000
if not the whole $67,000.”
( name with held )
“Why
don't you do a little investigative reporting and find out
what
the leasing companies knew as they partnered with Norvergence in this
scam. Find out about Robert Fine and his role at
working both
sides. Certainly he was an insider at Norvergence
and knew the magic
Matrix
had nothing to do with telecommunications.
Certainly, he knew
that
the leasing companies were paying crazy amounts for equipment
worth
only a fraction of what they were paying.
Certainly the
leasing
companies knew that the lessees were paying for service, and
not some
piece of worthless equipment. Why
don't you do your job and find out exactly why the leasing companies
performed no due diligence on the equipment they bought.
“We all
know about how powerful the leasing companies can be. But the contracts were all
based on fraud and deception and I certainly hope that will mean something
to the courts. I suspect the
leasing
companies,
in spite of their legal brass, are sincerely worried. Why
don't
you report on that subject????”
The list
serves and internet are burning up with emotional
feelings
about being “robbed.” They report
contacting
all the
local and state law enforcement offices, their
congressmen,
as they believe this is “re-election”
time
and their voice will be heard louder than
any other
time.
In the meantime, the Telecom
Agents
Association has formed a “legal co-op” with over
50 members
at this printing, all putting in a minimum of
$995
or the sum of their first two lease payments.
This is a one-two-three
step operation where they most likely will choose their "battles,"
such as all the contracts on NorVergence documents that were assigned
or sold to leasing companies.
They are considered
the most vulnerable.
Then there is the
second set, those "sold" by NorVergence salesmen, who may
be recognized as independent agents, or maybe not, and their verbal
promises, in certain states, may be considered part of the contract,
or the reason the contract was signed.
Then contracts where
everything was "not" delivered and the contract was not fulfilled.
The Telecom Agents
Association is a bona fide organization and will have much talent in
their effort. They have support from their industry, and former
NorVergence customers.
While
Leasing News has been writing about NorVergence, so did
the Telecom
Agent Association, and they had to walk a "legal line,'
even
though a closed and association format.
There
are some other groups trying to start, but the first one,
established,
organized, and to the benefit of its profession,
has undertaken
a move that other associations should take:
find
ways to help their members and their members customers
and their
industry.
|
|
Local
Business Papers Pick Up the Story
Meanwhile
local business newspapers such as the Houston Business
Journal
are picking up the local angle to the story:
Bankruptcy
disconnects telecom customers
by Mary Ann Azevedo
Houston
Business Journal
Nearly
1,000 small businesses in the Houston area have been stuck with hefty
bills following a bankruptcy filing by a Newark, N.J.-based telecommunications
company.
NorVergence
Inc., which had operated a Houston office, sold phone and Internet service
to an estimated 947 companies in the Houston area over the past year.
NorVergence
filed bankruptcy on June 30 after three of its creditors brought involuntary
Chapter 11 proceedings against the company. NorVergence went on to file
Chapter 7 bankruptcy on July 14, according to a filing with the U.S.
Bankruptcy Court in New Jersey.
Now,
11,000 small businesses in more than 20 states owe thousands of dollars
to third-party creditors for services that they say were not delivered
and for equipment that is now inoperable.
NorVergence
targeted small business owners with good credit records. The company's
salespeople, called screening managers, not only sold telephone and
wireless service which the company bought wholesale from large carriers
such as Qwest and Sprint -- they also pitched the company's "solution,"
a box which allocated bandwidth over a T1 line.
What
many customers apparently didn't know was that the service was unrelated
to the box. And some customers claim the box, which they paid to lease
from the company, had no function.
Many
customers purchased the box without knowing it could not be used by
other phone providers and got locked into five-year leases with a bank,
which had purchased the leases from NorVergence.
NorVergence's
attorney, Bruce D. Buechler of Lowenstein Sandler PC, did not return
telephone calls. A recorded message at NorVergence's Houston office
refers callers to Qwest. A recording on the New Jersey phone number
for NorVergence alerts callers that the company is in bankruptcy.
Meanwhile,
the Houston Chapter of the Associated General Contractors is one organization
that says it got burned.
Ada Lam,
the chapter's executive director of finance and administration, says
AGC was impressed with the idea that it would save $600 a month in telecom
bills by switching to NorVergence. But the group quickly realized something
wasn't right.
## Press Release ##############################
FCC Line Charge Should Be Removed from All Phone Bills, Teletruth Charges
Teletruth Files First Complaint Under the Data Quality Act at FCC — The FCC Line Charge Increases Had Inadequate
Cost Support — Quintuple Taxed as Well.
Teletruth Files Second Petition with the FCC Over 'Truth-In-Billing".—
FCC Line Charge Doesn't Go To Fund the FCC.
New York --- Teletruth, a nationwide customer alliance, today petitions
the FCC, under the Data Quality Act, to remove and cost justify the
FCC Line Charge located on every residential and business telecommunications
phone bill per line.
This appears to be the first "Data Quality Act" challenge at the
FCC, which was established in 2002 for parties to question the data
provided by a regulatory agency and request corrections.
"Since 2000, residential and small business customers have had an 86%
increase in this one charge, from $3.50 to $6.50 a line. That comes
to adding $14.3 billion to household charges --- about $125 a line,
counting numerous taxes and surcharges," states Bruce Kushnick,
Chairman of Teletruth.
"Our challenge to the FCC under the Data Quality Act is based on our
conclusion that flawed, selective, statistical analysis has maintained
then increased this charge over the last two decades without adequate
cost support. We are calling for an investigation into the data and
analysis used for the increases," adds Tom Allibone, Teletruth,
Director of Auditing. "In fact, there are studies done in 1998
that seem to indicate that the original starting price to customers
was inflated."
This challenge should not come as a surprise to the FCC. Commissioner Copps,
in 2002 wrote:
"I am troubled that consumers will face an increase in the line charge
on their local bill without the Commission undertaking a thorough analysis
of forward-looking cost data. In 2000, when the Commission adopted access
charge reform for price cap carriers, the Commission pledged that it
would initiate and complete before July 1, 2002 a cost review proceeding
to ensure that consumers are not overpaying for telecommunications services.
This has not been done. Carriers were required to provide, and the Commission
stated that it would examine forward-looking cost data. A significant
number of carriers, however, submitted summary data without disclosing
the inputs used, cost models that were not transparent, or in some cases,
models that have been rejected by the state commissions….The Commission
then failed to conduct its own independent analysis of the cost data.
By failing to undertake the thorough analysis of cost data that was
promised in the access reform order, we are neglecting our obligation
to consumers."
More importantly, the data used for this change was totally without any
merit. The phone companies only submitted "summary" data with
no back up cost support. Meanwhile, NASUCA, (the National Association
of State Utility Consumer Advocates) found that literally 76% of the
population would be paying excess charges when this fee was raised above
$5.00.
Mislabeling the Slush Fund: Truth-in-Billing.
In a second claim, Teletruth has filed a petition under the "Truth-in-Billing"
guidelines, claiming that the labeling of this charge leads most consumers
to believe this charge is funding the FCC, but in fact, it is unmarked
revenue to the local phone companies.
"Besides the lack of cost support, everything about this charge is
misleading. For example, it is not included in the advertised cost of
packages. It is stuck in the "Surcharges and Taxes" section
on the Verizon New York phone bill, though it is not a tax or a surcharge,
and in New Jersey it is in "Basic Service", which is also
wrong," stated Tom Allibone of LTC Consulting and Director of Audits
for Teletruth. And when the phone companies talk about rate increases,
they never include it, even though it went up 86%."
"To top it off, in our survey, we found that it was quintuple taxed
in New York City and other states. In New York City, it adds an additional
27% to the cost. In fact, it is taxed a "Universal Service Fund"
charge, among other taxes and surcharges, even though it is in the "Surcharges
and Taxes" section of the Verizon, New York City phone bill,"
adds Kushnick.
Summary of Problems with the FCC Line Charge? This charge is on every wireline
residential and business phone bill in America.
It has at least 10 names across the US, from FCC Line Charge to "SLC".
The advertised price for a bundled "package" does not include
this charge. It does not go to fund the FCC as is the common belief.
It has continually increased over the last three years - 86% since 2000.
it is quintuple taxed in New York City adding 27% to the cost.
It is unmarked revenue of billions of dollars back to the phone companies.
The FCC never conducted a full cost analysis as to why it should be
on the bill. It is not "mandated" or "ordered" by
the FCC.
It is not part of "Basic" service, even though it’s on many state
phone bills. It's not a tax, even though it's in the "Surcharges
and Taxes" section of the NY Verizon bill, and some other states.
It is not controlled by the state commission even though Verizon NJ says
it is. Verizon stated publicly that local phone service hasn't increased
in 11 years in New York and 20 years in New Jersey. — They didn’t include
the charge. A study done in 1998 indicates that this charge could be
inflated 550%. The FCC is now entertaining plans to raise the charge
per month in 2004.
Teletruth's recent new report "Phone Bill Independence" and the
new fact-based expose/ novel "The Dirty, Little, Secret Lives of
Phone Bills", explains the FCC Line Charge in detail.
For more information see
call 212-777-5418.
Teletruth is an independent, nationwide, customer alliance and is not funded
by any telephone company, lobbying or astroturf group or association.
Teletruth is a member of the FCC Consumer Advisory Committee.
#### Press Release ##############################
-------------------------------------------------------------------------------
|
|
"What Lessors Are Saying About…The Construction Leasing Marketplace"
ELT News ( Equipment Leasing Association
)
ELA and R.S. Carmichael & Co., Inc., a marketing research and management
consulting firm, released a report the other week, Construction and
Agricultural Equipment Leasing, 2004: U.S. Market Dynamics and Outlook.
The construction market, in particular, resumed its growth in 2003 and
is forecast to grow eight to 10 percent in 2004 and 2005. Construction
equipment lease financing is projected to reach $12.5 billion in 2004
and reach $13.5 billion in 2005. This compares to $11.4 billion in 2003,
and $10.5 billion in 2002. E-news asked a few lessors what they were
experiencing in the market.
Ed Hetherington, president of Ingersoll-Rand Company also said “We are seeing
very positive signs of increased sales. It is attributable to the economic
rebound and the pent up demand for new equipment. The rental market
is also starting to rebound.”
Rob Stowers of Altec Capital Services LLC said they have experienced increases
in general construction equipment (yellow iron), utility infrastructure
and other specialty equipment manufactured by Altec. “"Our business
has improved significantly during the first seven months of 2004. Our
funded volume is up 25 – 30 percent, credit applications have more than
doubled in both dollar volume and in number of applications compared
to the same period in 2003. In addition, credit losses are substantially
lower than in 2003. We anticipate our annual funded volume and profitability
to be 30 percent greater in 2004 versus 2003."
“Pent up demand is one of the largest contributors to the rebound,” said
Troy Price, Vice President of CE Financial Services, CNH Capital, but
he also cited that this market is becoming more astute in how they manage
their balance sheet. “We see this market beginning to use leasing more
as a financing mechanism. Customers are beginning to take advantage
of leasing products. Leasing gives them better use of their cash, and
customers are getting better at managing risk.”
Mark Manning, Customer Business Center Manager, Caterpillar Financial, added,
“There is growing demand from contractors who have delayed purchasing
equipment, keeping machinery longer than they normally would. As the
economy improves, then the opportunity for work associated with infrastructure
projects returns. As contractors' backlogs deepen, the future looks
brighter and they are more inclined to make those replacement purchases.
They feel more comfortable committing to debt or long-term lease agreements
to replace their tired iron. All of those things are working in combination
to create a fairly robust marketplace right now in the construction
sector."
He
also added, "The general economic rebound, combined with renewed
fiscal budgets of the states, which contribute a lot to construction
and large infrastructure projects, is improving the marketplace. Before
2003, many projects were on hold because state budgets were reduced
and federal match-funding requirements could not be met. States had
to prioritize projects based on the limited resources available, but
an improving economy and tax revenues are allowing states to open these
projects again, which positively impacts the construction sector.”
Said
Jim Gavaghan, Region Manager, GE Commercial Equipment Financing, “A
good deal of the construction companies that we speak to and do business
with have been attributing a lot of the rebounding to demand, most of
it coming from public projects (e.g., roads, schools, bridges and downtown
projects). In some regions we serve, companies are also seeing a large
amount of work on residential development projects.
“Of
course, different regions across the country are experiencing different
levels of rebounding,” Gavaghan added. “And, each region has a different
take on factors that contribute to the rebound. For example, in the
Southwest, EPA / FERC emission credits are incenting operators to retire
older units. They get a credit or grant from the government toward a
new purchase if the old unit is put out of service.
He
continued, “In the Ohio/Western Pennsylvania region, construction companies
acknowledge an overall pick-up in demand, but still see the commercial
sector as being weak. The commercial side does seem to be improving
somewhat (as compared to the past few years) – backlogs are fairly strong,
partially due to good volumes this year. In addition, heavy rains last
year meant that many projects were pushed into this year because work
could not be completed.
“In
the Eastern Pennsylvania, New Jersey and Delaware region, housing continues
to do well. Most of the construction firms we are doing business with
are tied to this part of the sector. It is certainly being driven by
longer-term interest rates staying low for such a long period of time,”
said GE’s Gavaghan. “Also, Pennsylvania has had many large road projects
out over the past two years, and activity appears good for 2005.”
Overall,
however, he did not believe that things were strengthening quite yet.
“At best, some of the associates felt that things had leveled off somewhat
said Gavaghan.”
"Agriculture
Lease Financing Marketplace Strong, Says New Study"
The
use of lease financing will reach $10 billion in terms of annual volume
this year, representing a 55 percent penetration rate of equipment acquisitions,
according to new study by the Equipment Leasing Association, the non-profit
association representing companies involved in the $218 billion equipment
leasing and finance industry, and R.S. Carmichael & Co., Inc., a
marketing research and management consulting firm, White Plains, New
York. The report, Construction and Agricultural Equipment Leasing, 2004:
U.S. Market Dynamics and Outlook, says in 2005 the annual volume of
agricultural equipment lease financing is forecast to increase to $10.5
billion.
Other
highlights from the report include:
•
The agricultural business in the U.S. has been undergoing consolidation
at all levels, from the number of farm operators to the number of equipment
vendors.
•
The principal agricultural equipment categories for lease financing
include tractors, harvesting equipment, irrigation systems and treatment/application
equipment.
•
Ticket sizes for lease financing of agricultural equipment range widely
from $25,000 to more than $250,000 with the vast majority of agricultural
equipment being small ticket (under $250,000).
•
Average lease terms are three years with some leases being written for
as long as seven years.
Richard
S. Carmichael, Managing Director of R.S. Carmichael & Co., Inc.,
which conducted the study, observes, “Lease financing is ingrained in
the agricultural equipment industry as evidenced by major manufacturers
either having captive finance companies or formal leasing relationships
with third-party commercial finance companies. They find lease financing
a vital sales-aid tool.”
“Lease
payments are not always on a monthly basis in the agricultural market,”
added Michael Fleming, the association’s president. “Farmers may make
payments on a quarterly or semi-annual or even annual basis. Leasing’s
flexible nature, fast turnaround, strong customer service, competitive
rates are clearly key to the agricultural market.”
Among
the market studies’ key objectives, the report measures and characterizes
the U.S. construction and agricultural equipment leasing market; identifies
the trends affecting lease financing penetration in each market; evaluates
the leasing practices and needs of customers and equipment vendors;
and projects the U.S. construction and agricultural equipment leasing
markets through 2005.
Organizations may purchase a copy of the study from
http://www.ELAOnline.com/ELAstore/ or
call
ELA at 703-527-8655.
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,
which includes the questions to ask before signing a lease and to access
a directory of leasing companies, at http://www.ChooseLeasing.org.
About
ELA
Organized
in 1961, the Equipment Leasing Association (ELA) is the premier non-profit
association representing companies involved in the dynamic equipment
leasing and finance industry to the business community, government and
media. As the voice of the leasing industry, ELA promotes the estimated
$218 billion industry as a major source of funds for capital investment
in the United States and abroad. Headquartered in Arlington, VA, ELA
has more than 800 member companies and a staff of 25 professionals.
For more information on ELA, please visit http://www.ELAOnline.com.
About
R.S. Carmichael & Co., Inc.
Founded
in 1976, R.S. Carmichael & Co. is a leading marketing research and
management consulting firm serving the equipment leasing field and other
financial services industries. Based in White Plains, NY, the firm has
a 28-year record of success in helping clients identify opportunities
and develop actionable plans that are market-driven and factually based.
Visit R.S. Carmichael & Co. at http://www.rscarmichael.com.
----------------------------------------------------------------
"DVI
Recoveries Show Promise:
Triple-A's Seen as 'Cheap' if Servicer Is Successful"
ABSnet News
RadNet
Management, the primary operating subsidiary of Primedex and one of
DVI's most prominent lease obligors, has agreed to repay the $60 million
it owes--good news for investors holding DVI medical equipment lease
ABS.
According to replacement servicer US Bank, $334
million of the current $500 million in defaulted loans is being sought
as collectable via restructuring, and another $100 million is considered
collectable through legal means. Some $2.6 million has been charged
off, and $145 million of the $334 million has been either restructured
or resolved in a cash payment. One source says that while US Bank is
working on other accounts, the bank is not sure it will receive par
value for all remaining collectable accounts, but if US Bank gets all
the money, it is thought that senior ABS holders will get most or all
of the principal owed them.
There
is no guarantee that DVI ABS will not default, but investors are pleased
with RadNet's news since RadNet represented almost 20 percent of the
most important defaulted receivables.
"Future performance of the pools will largely
depend on [US Bank's] ability to reduce the flow of future delinquencies
as well as on the magnitude and the timing of recoveries on defaulted
receivables," said Moody's Investors Service. "The latter
will depend on [US Bank's] ability to either work out the already defaulted
contracts or liquidate the underlying equipment.”
---------------------------------------------------------------------------
August
Business Leasing News
David
G. Mayer, a business transactions partner of the law firm of Patton
Boggs LLP and author of the book, Business Leasing for Dummies ® (BLFD).
“ Unfortunately, the book is out of print and
only a few copies remain
available;
so if you want to find a copy, please search the web today!,”
he
says. “ Thanks for buying my book for two and one-half years. “
“This
e-newsletter offers timely, concise information and analysis backed
by supporting research. “
In
this issue:
1.
Major U.S. Airlines Struggle as Discounters Carve Up Their Markets
2.
Cape Town Convention Gains Approvals in U.S. Senate
3.
Is a TRAC Lease a True Lease?
4.
BLN Case & Comment: Lenders Affected When Purchaser Cuts Corners
On Environmental Diligence – XDP, Inc. v. Watumull
Properties Corp.
5.
Leasing 101: What is a “TRAC Lease”?
6.
BLN Briefs: Venture Capital Impact; New Maritime Security Code; Business
Jet Deliveries and Orders Increase
7.
Training Offered; Upcoming Speeches; New Publications
8.
About Patton Boggs LLP and My Law Practice
http://www.leasingnews.org/items/August%202004.htm
--------------------------------------------------------------------------
Streamlined
Sales Report
Dennis
Brown, Equipment Leasing Association
Streamlined Sales Tax Report
http://www.leasingnews.org/items/Amend%20SSTP%20agreement%
20for%20definition%20of%20school%20supplies.htm
State Status
http://www.leasingnews.org/items/Streamlined%20Sales%
20Tax%20Project%20State%20Status.htm
Timeline
http://www.leasingnews.org/items/Streamlined%20Sales%20Tax%20Timeline%202004.htm
Amnesty for Registration
Implementation and Administration Procedures
http://www.leasingnews.org/items/Amnesty%20white%20paper.htm
Working draft – For Discussion
Purposes Only
http://www.leasingnews.org/items/bundling%20revised%2008-02-04.htm
DBROWN@ELAMAIL.COM
Dennis Brown
Equipment Leasing Association
http://www.elaonline.com/GovtRelations/State/Streamometer/
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Press Release ############################
1st Source Corporation Announces Intention to Issue $30 Million of Trust Preferred Securities;
Plans to Redeem $27.5 Million of Outstanding Trust Preferred Securities
SOUTH
BEND, Ind.----1st Source Corporation (Nasdaq:SRCE) today announced that
it has entered into arrangements for the private placement of $30.0
million of 7.66 percent trust preferred securities. It intends to use
the proceeds of the sale to redeem all $27.5 million of the outstanding
9.00 percent trust preferred securities (Nasdaq:SRCEP) issued by 1st
Source Capital Trust I in 1997. Subject to final documentation, the
securities will be issued by a newly formed Delaware business trust
subsidiary of 1st Source Corporation (1st Source). These fixed rate
trust preferred securities will be issued at $25.00 per share at the
rate of 7.66 percent per annum, payable quarterly. The securities are
redeemable after five years and are due in 2034.
1st Source today provided notice to the trustee
for the 9.00 percent trust preferred securities of its plans to redeem
these securities prior to September 30, 2004. The redemption price will
be $25.00 per preferred security plus accrued dividends to the date
of redemption. 1st Source expects that holders of the 9.00 percent trust
preferred securities will receive formal notice of redemption from the
trustee.
The completion of both the new issuance and
the redemption will have an on-going quarterly earnings benefit; however,
2004 third quarter earnings will be reduced by an estimated $460,000
due to the net impact of the write-off of capitalized debt issuance
costs related to the trust preferred securities currently being redeemed.
The new trust preferred securities have not
been registered under the Securities Act and may not be offered or sold
in the United States absent registration or an exemption from registration
requirements. This announcement does not constitute an offer to sell
or the solicitation of an offer to buy the securities.
1st Source is the largest locally controlled
financial institution headquartered in the northern Indiana-southwestern
Michigan area. While delivering a comprehensive range of consumer and
commercial banking services, 1st Source Bank has distinguished itself
with highly personalized services. 1st Source Bank also competes for
business nationally by offering specialized financing services for private
and cargo aircraft, automobiles for leasing and rental agencies, medium
and heavy duty trucks, construction and environmental equipment. The
Corporation includes 61 banking centers in 15 counties, 6 Trustcorp
Mortgage offices in Indiana, Ohio and Michigan, and 22 locations nationwide
for the 1st Source Bank Specialty Finance Group. With a history dating
back to 1863, 1st Source Bank has a tradition of providing superior
service to customers while playing a leadership role in the continued
development of the communities in which it serves.
CONTACT:1st
Source Corporation Larry Lentych, 574-235-2702 Andrea Short, 574-235-2348
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LeaseCompare.com
& MarketWise Remarketing Partnership Helps Reduce Off-Lease Residual
Losses
CINCINNATI----Automobile
Consumer Services, Inc. (ACS), the leader in online direct-to-consumer
auto leasing, announced a new partnership with MarketWise, a specialist
in automotive remarketing. A key component of the relationship will
be that MarketWise will use ACS's popular www.LeaseCompare.com quoting
engine as a remarketing tool.
MarketWise
currently provides end-of-term leasing management to financial institutions
such as banks, credit unions, residual value insurance providers, captive
and non-captive finance companies to minimize risk and increase profitability.
The LeaseCompare.com quoting engine now makes it easy for Marketwise
representatives to compare lease/finance payments while talking with
consumers coming off of a lease. The quotes are offered to customers
on behalf of the lender who originally wrote the lease.
Offering
a re-lease to an off-lease vehicle customer will give them a lower payment
than a conventional loan. This will result in a cap cost that is closer
to the actual residual value which helps mitigate residual losses by
the original lessor.
David
Walsh, MarketWise vice president, stated, "Our relationship with
ACS is critical to our success. Using the LeaseCompare.com quoting engine
will allow us to close more sales on behalf of our clients." Walsh
continued, "I'm extremely pleased to have a used car leasing product
available for our lease customers who want to continue leasing their
current vehicle."
An
added benefit of using the LeaseCompare.com quoting engine is that ACS
will handle the entire re-lease process once the credit application
is submitted. This frees up Marketwise and their financial customers
to pursue other business.
Tarry
Shebesta, president of ACS, added, "We are excited about our partnership
with MarketWise. MarketWise achieves great results for their clients
and we're delighted that our LeaseCompare.com instant quoting tool will
help drive superior results for MarketWise clients."
About
Automobile Consumer Services, Inc. (www.acscorp.com)
Based
in Cincinnati, Automobile Consumer Services, Inc. (ACS) is a leading
provider of consumer automotive services, including car buying and leasing,
fleet resources, vehicle remarketing, and used vehicle sales. Founded
in 1989, ACS's mission is to provide services that enhance the experience
of buying or leasing a car. ACS achieves this by leading the industry
with innovative proprietary technology, superior customer service, and
years of industry experience.
About
MarketWise (www.Market-Wise.com)
MarketWise
is an automotive remarketing services company dedicated to providing
"best-in-class" End of Term Management, Recovery and Remarketing
Management as well as Sales and Leadership Training. Strategic relationships
with companies such as Auto Trade Center (www.autotradecenter.com)
uniquely position MarketWise to utilize multiple sales channels to maximize
client proceeds and, ultimately, return on remarketing investment. Founded
on people, technology and experience, MarketWise has been reducing risk
and increasing profitability since 1997.
-Tarry
Shebesta, President
Automobile
Consumer Services, Inc. (www.acscorp.com)
Vice
President, National Vehicle Leasing Association (NVLA)
tes@acscorp.com
/ 513.527.7700 ext. 11
ACS
Services:
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Press Release ##############################
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