#### Denotes Press Release
Pictures from the Past---1995---WAEL’s Staff
The 1995 Western Association of Equipment Leasing Staff: (back row, left to
right) Raymond Williams, Ph.D.,CAE, 1995 President Jim Merrilees, Sharon Ortiz; Front row, left to right) Estarlita Green, James Geluz, Loretta Lowe.
“1995 brings numerous changes to the WAEL Staff. Executive VP Ray Williams, PH.D., CAE, has earned a re-certifciation from the American Society of Association Executives.
Congratulations are in order for Sharon Ortiz. She was recently promoted to VP of Operations. This new positions puts her in charge of the day-to-day activities of the office. Formerly Director of Administration, she has been with WAEL for nearly five years.
“Additional congratulations go to Loretta Law, WAEL’s Meeting Planner. She earned her Certified Meeting Planner (CMP), which is administered by Convention Liaison Counsel.
“Estarlita Green has take on the duties of Member Services Coordinator. She has been with WAEL for almost six years.
“Finally, you may have noticed a different look to the WAEL Newsline and the other WAEL publications. WAEL welcomes Jamie Valdez-Geluz as the new Director of Publications. WAEL’s media needs and working closely with membership. He intends to follow in the tradition of innovative print media for which WAEL has earned distinction.
Classified Ads---Help Wanted
Sales: National: Medical & IT Equipment- Plus. Seeking professionals w/solid book of business & strong work ethics. Exceptional support, commissions & expenses. Email: firstname.lastname@example.org
About Chase Industries, incorporated in 1993, currently has six regional offices throughout the United States. We work to provide a straightforward - honest approach to offering the best financial services to our vendors and their customers - without all the surprises. www.chaseindustries.com
Sales: 25 Territory needed. Generous comp. Provide custom telemarketing your database. Provide 800#. Strong support (System 1 Advantage).
Bruce Larsen Leasing Partners Capital (952) 890-5092.
Sales: Lessor/Broker-Arizona- need experienced mid-market salesperson, location open, strong medical bkrnd pref. Top comm, draw, benefits. Call John Torbenson 888 607 6800
About Odyssey Equipment Financing started in 1985 in
Seattle. Company sold part of the company in 1997 and moved to Scottsdale, Arizona. Company specializes in medical equipment financing and acts as both a funder and broker.
eLease Section Has Been Up-dated
If there is more current information, please let us know, as this
is the latest that we have:
Books on Equipment Leasing
Our Most Recent Book Review:
Taylor’s “Selling Leasing in a Tough Economy” is now highlighted on our website in our display site, free of charge, as we are so impressed with this tome, and it’s concept on education, we consider it a “must read.”
Here is our review, if you missed it.
One of our first sections on the Web Site tool bar was “Books.”
When I entered the equipment leasing business in 1971, there were no
conferences to teach about leasing. I went to the San Francisco library
and read every book on leasing, then started to buy and collect them.
One of my favorites has been up-dated, revised, and now comes with a
CD-Rom. You can read on your computer, print, or perhaps lead a class
with computers or notebooks. The large layout in a classic loose leaf
notebook is a plus.
Marketing the Equipment Lease---Ted Parker, CLP
He also was the first to come out with a uniform documentation book,
way ahead of his time. It has become an industry standard. It was
the first with a floppy disk. An ex-banker, he certainly contributed
a lot to help standardize the leasing industry.
The Certified Leasing Professional Manual, “The Leasing Professionals’ Handbook,” written primarily by Bob Teichman, CLP, needs to be up-dated. The author will admit to that. It still is a very good book, but Bob says he wishes
he had the time to up-date it. He wrote most of it before he started his own lease training company, when he had more time. He did it for the sake of the industry and was not paid for what he contributed.
The most up-to-date book, and quite practical is:
“ Power Tools for Successful Leasing”
It also is a “must read.” Some of the legal advice and explanation of
common practices are worth more than the price of this very well-written
“manual,” if you will.
In the collection of books, the most extensive, and perhaps the definitive
work, plus the most expensive are by the late Jeffrey J. Wong and Michael A. Leichtling, Editors-in-Chief, published by Mathew Bender.
Commercial Finance Guide and Commercial Loan Documentation Guide
I purchased mine at a leasing conference at a 10% discount, then had Jeff
Wong autograph it. I sure miss both his wit and wisdom. Mathew Bender
keeps it up to date for an annual subscription.
While I think the leasing association listserve to answer questions, nothing beats a book that you can sit down at your desk or in a chair or couch, read---and re-read,
until you understand. Sometimes you don’t know the right question to ask. A book with chapters and an index let’s your explore at your own pace.
The books section on leasing news is divided not by title or author, but
first broken into where you can buy these books:
Certified Leasing Professional (CLP) Foundation
Equipment Leasing Association
Equipment Leasing and Finance Foundation Reports
United Association of Equipment Leasing
For the more serious research, or for the student, we also recommend
the public library on line. It is best to be “internet savvy,” as the younger
generation are, and this source is excellent once you learn how
to navigate it.
As Jeff Taylor says in his book “ Selling Leasing in a Tough Economy.”
In a nutshell, the only competitive advantage the leasing company of the future will have is its manager’s ability to learn faster than their competitor. In fact, I would argue that the rate at which individuals and organizations learn may become the only sustainable competitive advantage.”
“In summary, your learning goals should incorporate the following challenges:
--Increase your emotional intelligence
--Live with and enjoy a world of constant change
--Avoid activities which disrupt learning
--Destroy all achievement blockers
“It is not enough to just want to learn. One has to prioritize it and incorporate it into daily life.”
(By the way, the title may be very timely, it could also be misleading, as
this book should be read by everyone involved in leasing, not just the
sales and marketing staff. It applies to everyone involved in the leasing
process. I invite you to buy a copy, and if I am wrong, write me and
I will print your comments. Editor).
Please send to a colleague and ask them to subscribe. You can use the button
at the top (Send to a Friend ). We are trying to build our readership. There is a “free” version in text format, and a subscription version with 45 Days Free Trial where you can click on to the headline and go to the story, get “Day in American History” by periods of history, “Kit Menkin Live,” and instant access to the website---now need to go to the browser.
Hit Reply and “up-date me” or use contact form for “free text version”
Commercial Money Center Attorney Withdrawal.
“The correspondence I rec'd was a notice to withdraw as counsel from Harold Gewerter (their only counsel as far as I know) and was in regard to Dowell -v- CMC et al. It looks like a standard, across the board withdrawal for all matters. It specifically mentioned the reason as lack of payment of fees causing financial hardship to counsel as the reason for withdrawal. If he's out, things can't be all that good.”
( Name With Held )
Tom McCurnin, Barton, Klugman, Oetting, Los Angeles, California
e-mail: email@example.com Voice: 213-621-4000 Fax: 213-625-1833
He is looking for information on past leasing conferences concerning the
issue of having a “license” in the State of California. He is also interested
in talking with any party or attorney regarding their experience in obtaining
a “Finance Lender” or similar license in the State of California.
I personally have attended several legal forums on this, and the last one I remember was headed by Victor Harris for the United Association of
Equipment Leasing. My memory tells me that he advised the audience
that they should not pay a commission to a person who was not licensed
in the transaction, meaning if you had an independent contractor as a salesman
you would have to put he or she on the payroll to show he was an employee, or
the salesman had to have a license.
Now if my memory about what Victor advised is not correct ( and I am sure there is a lot more as he and his panel spent over a hour on this one subject ,) please write to Leasing News. We will print your advice.
Kit Menkin, editor
Abacus Sues Leasing News for $5,000,000 question
“In your newsletter of March 5, 2003 you state: "Basically, we ask readers to
go to the "pdf" of the commitment letter and make up your own minds
regarding the return of the $50,000 deposit." Having been in this business
some 30 years and involved in numerous work-out / litigation situations, I
downloaded the pdf file and reviewed the information. Since I am not an
attorney (but I watch a lot of legal shows on TV), I decided to play both
attorney and jury member below:
“It appears that the transaction began on June 20, 2002 with a proposal from
Abacus. After discussion with PacTox, a "revised" proposal was issued was
faxed on July 19 which stated that "Formal credit approval shall be subject
to receipt of all requested information and the development of documentation
and all other specified (sic) acceptable to the Lessor or its assigns." The
revision called for a 61 month $1.00 out lease with an advance rental of
$50,000 followed by 60 payments at 1.948% of cost to yield 19.78% APR.
(Ouch.) The proposal calls for a deposit of $3,728.49 which was to be
applied, after expenses, to the advance payment if the transaction was
approved. If the application was rejected, the deposit would be returned,
net of expenses not to exceed 2% of equipment cost (or $3,827.54 in this
case, or, in other words, expenses could conceivably total the amount of the
“Although the revised proposal not dated above Terry Miller's signature (and,
in fact, the line shows: "Agreed and accepted this __ day of June, 2002"),
the cost was changed and initialed on July 24, 2002 on Page 1 of the revised
proposal. The proposal states that no guaranty will be required if the
company has a "comparable satisfactory corporation only credit reference."
“However, two days prior to initialing the proposal, on July 22, a check was
cut by Whittier Equities Corp to Abacus for $50,000.00 and labeled "Advance
funds - Lease of Elan DRC II." Some questions came to mind: how is Whittier
related to PacTox, why are they advancing funds for the advance rental and
not PacTox, why are they advancing an unsolicited amount to Abacus because,
after all, the proposal in hand only required a deposit of $3,728.49 and,
finally, was the check cashed as only the front of the check was submitted?
“Assuming there are satisfactory answers to the above and assuming the
$50,000.00 was paid, what happened between July 24 and December 31, 2002?
“It appears from the December 31 letter that the credit was submitted to a
funder someplace and an approval received (in August, September or October
perhaps?), which called for a Letter of Credit. Mr. Burke implies in his
letter that this approval was discussed with Ms. Miller, the letter of
credit agreed to by her and she told Mr. Burke that the letter of credit
would be ready on October 25th, prepared by Union Bank. (The fact that a
bank was named lends credence to the possible conversation about a letter of
credit and its acceptance by PacTox.)
“The LOC was never received and apparently there was some subsequent
discussion of a personal guaranty in lieu of the LOC. Some PG information
was apparently submitted which needed clarification but the request for
clarification was never responded to. Mr. Burke's December letter asks
whether PacTox will send either the LOC or the PG information. That, to me,
implies an open approval (subject to receipt of the LOC which may have been
verbally agreed to by PacTox as no written documentation was submitted,
although it may exist) which could be modified to drop the LOC requirement
and substitute a PG if the requested additional information was supplied.
“Terry Miller wrote to Leasing News and stated "In order to avoid signatures
of personal guarantees, we sent Abacus leasing $50,000.00. I also signed a
lease proposal which expired July 25, 2002." The statement about the
$50,000.00 being submitted to avoid PGs is interesting for several reasons.
First, the proposal signed July 24 states that no guarantees are required if
a comparable corporate credit exists. Second, there is no supporting
documentation submitted as to why the advance was paid and not just the
requested deposit. Third, the issue of a PG was raised, apparently, in
October, months after the advance rental was paid. (The proposal expiration
is a non-issue; the terms presented were good only through July 25. If
signed prior to that date, a valid contract existed to obtain financing or
leasing for PacTox.)
“There was no COMMITMENT LETTER in the .pdf package.
What is there is a PROPOSAL LETTER (actually a revised proposal letter dated
7/19/02 to one originally issued June 20). A proposal letter doesn't commit
to an approval; it merely sets out general terms and conditions as a
framework for an approval the lender will try to get for the borrower at
some time in the future. Acceptance of a proposal letter is a green light
for the lender / lesssor / broker to proceed to try to obtain financing on
the terms spelled out in the proposal letter.
“Most proposal letters I have seen have a time frame of 15 days or less to
accept or reject the proposed terms the lender will try to get. If the
proposal expires before it is signed by the borrower, the lender can
re-propose a different transaction or the borrower can just walk away.
“The fact that there is an expiration date in the proposal letter is not tied
to getting an approval or completing the transaction but rather in getting
the borrower to agree to the proposed terms by a specified date. Since
PacTox signed the proposal letter before the expiration date and sent funds
along with the letter, Abacus had a valid proposal in hand to try to obtain
financing for PacTox, even if it took a week or a month or more to get an
“I don't know anything about the credit worthiness of PacTox. In my
experience, medical test equipment, if repossessed, is hard to remarket.
That may be the reason for the $50K advance payment up front (seen as a
inducement to a lender to do the deal). It may also be the reason it was
hard to get an approval. But, eventually, it seems, one was obtained with a
letter of credit. As I stated earlier, it appears PacTox initially was
inclined to go with that but then suggested a PG as an alternative. That was
in October. Apparently Abacus spent three months trying to place the deal
and eventually found a lender who wanted a letter of credit but would
consider a substantial personal guarantor instead. We don't know because
apparently PacTox never provided the additional information requested.
“I concur that Abacus is not entitled to the $50,000. In fact, I personally
interpret the payment in the first place as an error. The payment that
should have accompanied the signed proposal letter was the $3,728.49
specified in the proposal as a deposit. Abacus didn't ask for $50K; they
asked for $3.7K to take the deal off the street. Somehow, they received
$50K. They should return it net of the expense allowance specified in the
“To further clarify, a COMMITMENT LETTER from a lender, issued after all due
diligence and credit review is done by them, states that they will do the
transaction according to the terms specified in the commitment letter within
a specific timeframe. For example, a commitment letter would say that they
will finance a new widget for ABC Company for 60 months at 10% APR with the
guaranty of the company president. The commitment expires April 1. Both the
borrower and lender sign this letter. If the deal is not completed before
April 1 the lender can either walk away or recommit for another period of
time. However, after April 1, if the lender issues a new commitment letter,
the rate might be higher or they might require additional terms and
“PacTox had a proposal letter only. They accepted it before the expiration
date. Even though the "expiration date" in the proposal letter passed, it
doesn't make any difference. PacTox agreed to let Abacus find them
financing. Abacus proceeded to try to obtain a commitment from a lender to
do the deal. Apparently they found someone but PacTox didn't like the terms.
But, as the proposal letter says, they can walk away but they forfeit up to
2% of cost for "expenses." They may be out the $3.7K in expenses as
specified and agreed to but they should not be out the full $50K, first
because that is not what the proposal letter says and secondly, because they
should not have paid that up front in the first place as it was not
“I'd be curious as to what a real attorney would say about this.”
Ronald J. Brodt
SVP Credit & Syndication
Amsource Capital Ltd.
(Contrary to “popular belief,” Leasing News is not the judge, or in any way,
purporting to give legal advice. The purpose of the Complaint Bulletin Board is to post a “legitimate complaint.”
We investigate everyone one of them to see if they are valid, and if you read
the past ones, always print the other side, whether we agree or disagree, as
our role is to be “fair and accurate.”
When there is “no comment” or “MSM Capital President Mike Cingari is not available,” this does not prevent us from the posting. That is the choice of the other party, to make a comment or not to make a comment.
If we do not think it is a legitimate complaint, or there is a document in question,
we do not print it. We have several complaints where lessee’s have signed away
their rights that any money submitted is not returned. Whether that is legal or
not legal in the state involved, we believe it is not a valid complaint for the bulletin board. There are times when a lessee “backs out” and claims “too
much time has elapsed,” but they have a signed commitment letter with an
“opened end” time period. We won’t print that one.
In the case of Abacus: I am going by the written proposal in the form of a “standard” leasing commitment letter and its purpose. It spells out what the understanding is about. When it expired, there were other forms sent to the lessee, which they did not sign, they state. The broker kept trying to put the transaction together, and according to the applicant, there were months of broken promises, changes, and it was never their intention to "reward" Abacus with $50,000 for their services. They always assumed they would pay 2% for the costs involved, and agreed to that, even if the "new lease" were to go ahead.
So the issue is basically the purpose of the proposal letter.
By its written agreement, it expired without the "broker" meeting
the terms. The lessee has agreed to reimburse the "broker" for
his time, verbally, according to the original figure in the
Commitment letter, but not $50,000. That dollar amount you must
agree is “preposterous.”
If a new Commitment or proposal letter had been signed by both parties, that
would change the circumstance, but according to the applicant,
that was never done, and it was never understood the "broker"
would be entitled to $50,000 for his "services," especially if
no transaction were to actually "fund." We requested on
seven occasions for additional documentation or comment from
Abacus Leasing. Their response was “We are going to sue you.”
We therefore posted the complaint as it appears legitimate..
Whether a jury would decide “guilty or not guilty” or the Attorney
General of the State of New York will view this as a “civil matter”
or a “criminal matter” is not known by us. We are an electronic newspaper
posting what appears to us as a legitimate complaint.
If there are other readers besides Ron that have an opinion on this, whether they be an attorney or not, we would be glad to hear from them and print their opinion on this matter.)
Kit Menkin, editor
What Is The Streamlined Sales Tax?
What Changes When A State Adopts It?
How Is Your Industry or Company Impacted?
How Can You Get Involved With Streamline Planners?
A panel of speakers representing the American Legislative Exchange Council, Council On State Taxation and National Retail Federation moderated by the Equipment Leasing Association will examine Streamlined Sales Tax.
Provisions of the streamlined Sales and Use Tax Agreement will be reviewed and related issues discussed. This timely event sponsored by the
Washington Area State Relations Group (WASRG) occurs as states are enacting the Agreement. Sign up with the fax registration form provided in the following attachment or visit www.wasrg.com
Wednesday, March 12
8:30 AM 11 AM
Hall of States
444 North Capitol Street
Rooms 283 and 285
Conference Center of State Services Organization
The Streamlined Sales Tax System promises uniformity and simplicity to all types of consumer and commercial transactions including collection of sales tax from the Internet and catalogs. Issues discussed will include Business Activity Tax safeguards.
Corporate and trade association representatives are also invited to learn more about the State Government Affairs Council (SGAC) at an informal event following the educational session. For additional details on the SGAC event, and to RSVP, please visit http://www.sgac.org/invite.html
Equipment Leasing Association
U.S. Small Business Administration Names CIT Small Business Lending Number One Minority Lender
LIVINGSTON, N.J.,-- Underscoring its commitment to helping minority-owned small businesses across the nation, CIT Small Business Lending (CIT SBL) today announced it has been named the nation's top minority lender by the U.S. Small Business Administration (SBA). The recognition is for fiscal 2002, ended September 30th, 2002. During that period, CIT SBL provided loans totaling approximately $220 million, lending to 408 African American, Hispanic, Native American, and Asian American businesses nationwide. This number represents more than 1/4 of the total number of loans CIT SBL approved in 2002, and signifies more than 28% of its total funded volume.
"We are excited about our contribution and feel privileged to be able to help these business owners achieve their goals. We are also very proud to be recognized as the top minority lender in the country and accept it as acknowledgement of our efforts to help minority-owned businesses nationwide succeed in building their dreams," said John Canning, President of CIT SBL.
An SBA "preferred lender" in 67 district offices nationwide, CIT SBL offers SBA loans for business acquisition and succession financing, owner-occupied commercial real estate financing, franchise financing, equipment financing, and construction loans.
CIT SBL lends to a variety of small businesses throughout the U.S. with loans ranging from $50,000 to $3 million. CIT SBL is a subsidiary of CIT Group Inc. (NYSE: CIT - News) and has been the nation's number one SBA lender for the last three years.
About CIT Small Business Lending
CIT Small Business Lending offers Small Business Administration loans, franchise financing, construction lending and equipment financing through a network of field representatives. The company's Web site and online SBA loan application are located at http://www.smallbizlending.com .
CIT Group Inc. (NYSE: CIT - News), a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has nearly $50 billion in assets under management and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries. CIT holds leading positions in vendor financing, U.S. factoring, equipment and transportation financing, Small Business Administration loans, and asset-based and credit-secured lending. CIT is headquartered in New York City, with principal offices in Livingston, New Jersey, has approximately 6,000 employees in locations throughout North America, Europe, Latin and South America, and the Pacific Rim. For more information, visit http://www.cit.com .
Silicon Valley Leaders Launch Statewide Petition Drive to Urge Legislature to Return Majority Vote Threshold for Traffic Relief
SAN JOSE, Calif.--Contending that gridlock and decay of our roads is undermining California's battered economy, Silicon Valley leaders today announced the launch of a statewide petition drive calling on the Legislature to put a measure before California voters that would lower the threshold for local tax increase measures from two-thirds to 55 percent.
"If the legislature declines to act, we are prepared to gather the million signatures needed to allow voters the power to fund local efforts to keep our communities moving," said Carl Guardino, president and CEO of the Silicon Valley Manufacturing Group.
"Because of the current two-thirds requirement, we can no longer build and maintain the roads, transportation systems and transit options vital to California's jobs and economic prosperity," said San Jose Mayor Ron Gonzales. "That's why we are beginning immediately to circulate petitions throughout the state to get the signatures of tens of thousands of citizens, urging the Legislature to pass measures now being considered which would lower the voter threshold."
Several state legislators who support just such an approach joined in the news conference at a Highway 85-87 interchange construction site.
"Voters have already proven their willingness to change the two-thirds vote threshold for school bonds. Prop. 39 passed in November 2000 and authorizes a 55-percent approval vote for bonds for repair, construction or replacement of school facilities," said state Sen. Tom Torlakson of Antioch. "And voters in 'self-help' counties have already shown they will put their own dollars forward for transportation," added Torlakson.
Torlakson, who is sponsoring an amendment to permit those counties to renew existing local sales tax measures with majority approval, noted that voters in many counties must reauthorize their local transportation sales taxes in the next few years. "If these taxes are not reauthorized, the state will lose about $48 billion in transportation revenues (adjusted for inflation) during the next 20 years," he warned.
South Bay Assembly member John Dutra has proposed similar legislation, which would permit approval of local sales taxes with a 55 percent majority, as recommended by the Governor's Commission on Building for the 21st Century.
"Californians ought to be able to pick up their kids from soccer practice or get to work safely without significant delays," said Assembly member Manny Diaz, chairman of the state Assembly Budget Subcommittee on Transportation. "It's critical we give local voters the option of taking action to improve their own roads, to provide their own transit, to keep traffic flowing in their own communities."
Diaz added that he will work to get the Legislature to approve the reduced vote requirement because the goal is so critical to the state's economy.
"Over the next 20 years, the population of California will increase by an amount equal to the population of Texas," said Diaz. "California's aging and inadequate transportation system isn't equal to the task of absorbing this growth, or meeting the economic needs of the world's fifth-largest economy."
The coalition sponsoring the signature drive, Taxpayers for Traffic Relief, includes both business and labor representatives. Neil Struthers, Chief Executive Director, Santa Clara & San Benito Counties Building & Construction Trades Council, said he is supporting the effort because the current two-thirds vote requirement is nearly impossible to achieve.
"Of the 40 local transportation sales tax increases that have been attempted in the past 20 years, most passed with solid majority votes but only five have exceeded a two-thirds vote," said Struthers. "Without a change, our economy threatens to grind to a halt."
Guardino noted that reducing the requirement for passing local transportation sales taxes from 67 percent to 55 percent has been a ten- year goal of the Silicon Valley Manufacturing Group.
"Until a 1995 state court decision, local voters were empowered to enact transportation improvements by a majority vote. If the 67% requirement had been in place previously, Valley commuters would not have Highway 85, and Highway 237 would still be a two-lane road with six traffic lights," Guardino said.
"Either the Legislature must approve such a step or voters will do it through an initiative, but it is absolutely essential to the economy of this state," he declared.
CONTACT: Silicon Valley Manufacturing Group
Anthony Marek, 408/501-7853
Pentagon Ready to Strike Iraq Within Days if Bush Gives the Word, Officials Say
Small German firm becomes the first to announce loss of U.S. business over anti- war stand
Buy U.S. Wine---Not France or German/travel to Portugal/Spain
Dollar Hits Four Year Low After Snow's Comments
Reports from the twelve Federal Reserve Districts generally suggested that
growth in economic activity remained subdued in January and February
Conseco reaches $1 billion deal to sell finance unit
A new signature for U.S. currency: John W. Snow
Consumers Call for Review of FCC Broadband Rules
Apple Computer expected to launch subscription music service
Kenneth Starr hired to fight for California's vinters
Amtrak will use name 'Acela' to describe high-speed trains only
Broncos Agree To Terms With QB Jake Plummer
Blake puts job search in high gear