November 1, 2002

Receiving his Certified Leasing Professional Plaque from Certification Committee Chairman Russ Runnalls, CLP, Charter Equipment Leasing (left) is Charles Meaker, CLP, President, Lease Financing, Inc., Tucson, Arizona.

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Classified Ads---Jobs Wanted (individuals looking for jobs)

Finance: Lyndhurst, NJ

CFO w/20+ years leasing/financing. Respected by lenders/rating agencies full & fair financial reporting. Outstanding record restructuring debt. Adept at investor relations and mentoring people. Email:joemcdev@aol.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

Finance: Boston, MA

10+ years commercial technology lease management and financial analysis. Includes LRF negotiations, EOL buyout negotiations. Financial Spreadsheet programming analytics. Industry and research skills excellent. Email:dssr@attbi.com

Finance: Atlanta, GA

Twenty five plus years experience in middle market lease/ asset based/cash flow transactions. Heavy banking and credit background, with particular expertise in structure and negotiation. Email:brown235@bellsouth.net

Funding: Northern, NJ

Coordinate all aspects of financing for leased equipment, prepare necessary documentation for discounting with banks. Handle renewals of and amendments to lease schedules. Email:istaub@unicapitalcorp.com

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

To view all 53 jobs in the “Jobs Wanted” category, please go to:

http://65.209.205.32/LeasingNews/JobPostings.htm

(These ads are free to all those seeking work, and will remain free)

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The Week's Economic Events/Conferences/Meetings

November 4

MONDAY

Factory Orders: September.

November 5

TUESDAY

Election day

November 6

WEDNESDAY

Election Results

Fed Open Market Meeting

November 7

THURSDAY

U.S. Productivity 3rd Quarter

Consumer Borrowing: September

Sales of Leading Retailers: October

Weekly Jobless Claims

MAEL Conference

November 8

FRIDAY

NAELB Get-Together

November 9

NAELB Conference

Marina Del Rey

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Midsize businesses may be next to sink

Cash-flow problems becoming fatal cycle for many companies

By Katie Merx Crains Detroit News

Closely held middle-market companies that were holding out for an economic upswing late in the year are wavering on the crest of the next wave of bankruptcies, restructurings and liquidations, turnaround experts and investment bankers say.

For the next couple of quarters, financial experts said, businesses with $5 million to $50 million in sales will be the most likely to succumb to an economy that's remained dismal beyond what executives and most economists forecast just one year ago.

"It's still tough out there for businesses," said Seema Chaturvedi, managing director at Accelerator Group L.L.C. in Troy. "One of my ex-clients actually closed his shop within the last month because of pressure from creditors. ... Then there's another company I know that had to close its doors because it didn't have sufficient cash flow."

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With economic conditions weakening, Fed expected to cut rates for first time this year

By Martin Crutsinger

ASSOCIATED PRESS

WASHINGTON – The Federal Reserve is likely to move four-decades- low interest rates even lower this week in the face of rising worry that the struggling economy is headed for rougher times.

A series of recent economic reports has offered indications that the country's sputtering recovery is once again threatening to stall, and that leads many private economists to predict a rate cut when Fed policy-makers meet Wednesday.

"The jury is now in, and the verdict is rate cut," said Sherry Cooper, an economist at BMO Financial Group.

Most economists believe the only question mark is whether the Fed will cut its target for the federal funds rate, the interest that banks charge each other, by one-quarter or one-half of a percentage point.

The funds rate has rested at 1.75 percent since Dec. 11. That's when the central bank made its 11th rate cut in an aggressive yearlong campaign to bolster economic activity and restore growth. The Fed acted while the country was in the grips of its first recession in a decade and still suffering economic shocks from the Sept. 11, 2001, terrorist attacks.

The Fed was content to leave the funds rate at its lowest level in four decades for an extended period in the belief the low rates would work their normal magic and restore stronger growth.

Such low rates have allowed automakers to offer zero-interest financing deals that drew buyers into auto dealerships in record numbers through the summer. They also have produced the lowest mortgage rates since the mid-1960s, spurring sales of new and existing homes to record levels.

The strength in these two critical areas, however, has been insufficient to launch a sustained economic recovery. Jolts such as the corporate accounting scandals, rising oil prices and worries about possible war with Iraq have acted as strong headwinds.

The economy did rebound from lackluster growth at a 1.3 percent rate in the spring to 3.1 percent in the summer. But many forecasters believe growth will slump again in the current quarter.

The most pessimistic look for an anemic rate of 1 percent or less as the surge in consumer spending fades, especially for big-ticket items such as cars.

"We are clearly hitting a soft spot with consumers worried about everything in the world from a war in Iraq to another terrorist attack," said David Wyss, chief economist at Standard & Poor's in New York.

The government reported Friday that the jobless rate climbed to 5.7 percent in October; the number of people looking for work but unable to find it rose by 100,000 to 8.2 million. Manufacturing lost an additional 49,000 jobs, the 27th consecutive monthly decline, bringing job losses in this sector to almost 2 million.

Jerry Jasinowski, president of the National Association of Manufacturers, said the weakening economy requires a bold move from the Fed. He interprets that as a rate cut of one-half percentage point at its policy-setting Federal Open Market Committee meeting Wednesday.

"There is a great deal of uncertainty right now, and policy makers need to take the steps to encourage business lending to get this expansion back on track," he said.

While the Fed favored half-point moves in eight of its 11 cuts last year, many analysts believe it may opt for a quarter-point now, in part because rates already are so low that Fed policy-makers could be worried about running out of maneuvering room.

The expectation of a rate cut this week helped lift spirits on Wall Street, with the Dow Jones industrial average climbing by 121 points on Friday despite the bad unemployment news.

Bolstering investor confidence may be one of the biggest supports further Fed rate cuts can provide, given that interest rates have been at such low levels for so many months that much pent-up consumer demand has been exhausted.

Lowering rates also could help to change the mood on Wall Street and encourage more investors to move money from the bond market back into stocks.

Some analysts, however, believe the Fed's interest rate magic has about run its course, and it's time for the White House and Congress to end their squabbling and come up with further fiscal stimulus. That could be either increased spending in such areas as a further extension of unemployment benefits or further tax cuts to encourage business investment.

Congress comes back this month for a lame-duck session, and an extension of employment benefits to help some 800,000 people who will exhaust their benefits in late December is among options being considered.

"An extension of unemployment benefits would help the economy," said Sung Won Sohn, chief economist at Wells Fargo in Minneapolis. "We are talking about a huge number of people who are facing the prospect of running out of their benefits."

On the Net: Federal Reserve: www.federalreserve.gov/

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Chicago November 7th, 2002

The 20th Annual Dinner Meeting

of the

MidAmerica Association

Equipment Lessors

(MAEL)

you won't want to miss

SPECIAL GUEST SPEAKER: WGN Radio personality Wes Bleed

The MidAmerica Association of Equipment Lessors ("MAEL"), ELA s largest regional affiliate, will be hosting its 20th

Annual Dinner Meeting at the Westin Hotel @ O'Hare in Rosemont, Illinois. Pricing for the meeting is as follows:

Registration

Level Special Benefits On-line Registration by mail,

fax or telephone

MAEL Members $100.00 $125.00

Non-Members $145.00 $175.00

Event Sponsor Table for eight

Full Page Advertisement in

Program $1,500.00 $1,500.00

Register on-line or complete & fax the attached registration form to 312-541-1275. If you need further information or assistance, please

e-mail events@mael.org or call Melissa @ 312-541-6000.

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National Association of Equipment Leasing Brokers Regional Meeting

November 8-9, 2002

Marina del Rey Hotel & Marina

Marina del Rey, California

www.marinadelreyhotel.com

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

www.naelb.org

Rich Wilbur is the conference chair. The price is rated a “Best Buy!!!” for what is offered. If you did not attend the UAEL or ELA, this is a must. And if you did,

this is still a “must,” if you are a broker or discounter.

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November 20-21st Association of Government Leasing and Finance

The Annual Fall Conference Co-Chairs John Merchant and Debra Saunders.

AGL&F 2002 ANNUAL MEETING - AVAILABLE AT www.aglf.org

November 20-22

Disney's Yacht & Beach Club Resorts

Orlando, Florida

The AGL&F Annual Fall Conference remains the premiere business

conference for our industry's leaders. Of course, our social

functions create the perfect setting for networking or making new

friends and business contacts.

We have two great evening events planned on the 20th and 21st of

November. The Thursday night banquet is included in the registration

fee; however, the Cirque du Soleil - La Nouba tickets are an

additional cost ($35.00), but that is 50% of the regular cost per

ticket. All evening events are suitable for children of all ages.

We are at Disney, so everyone should have a great time!

I would also like to remind everyone, that the 2002 Fifty State

Survey will be released at the conference and we will dedicate one of

the sessions to a review and discussion of the changes since 2000,

the date of the Survey's last release.

The Annual Conference brochure and registration form is available at

www.aglf.org

In the meantime, please feel free to call me or AGL&F Executive

Assistant Brian Mandrier, if you have any questions (202.742.AGLF) or

need additional information. We look forward to seeing you at Disney!

Cordially,

Graham Hauck

Executive Director

Graham Hauck

Executive Director

Association for Governmental Leasing and Finance

1255 23rd Street, NW

Washington, DC 20037

202.742.AGLF (2453)

fax: 202.833.3636

email: gsh@aglf.org

http://www.aglf.org

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ACC Capital—Promotions for Kimball-Slagle/Hodges-Hodges Appointed

ACC Capital Corporation (formerly Amembal Capital Corporation) would like to announce the promotion of Marci Kimball-Slagle to Senior Vice President of Intermediary Relations. Ms. Slagle has been with ACC for over six years, and in her tenure, she has been a driving force behind the expansion and implementation of the Intermediary Funding Department. Ms. Slagle is active in many of the industry associations and has been the regional chair for UAEL for the last two years. Ms. Slagle has been elected to serve on the board of UAEL in 2003.

Jacob Hodges joins ACC Capital Corporation as a Broker Representative for ACC's

Intermediary Group. Mr. Hodges brings with him years of leasing experience, having previously worked in originating and servicing a mid-ticket portfolio for an NYSE Direct Lender. Most recently Jacob worked for a local broker overseeing all business development, establishing and maintaining broker relationships and discounting with outside funding sources. Mr. Hodges received his Bachelor of Arts in Economics from the University of Utah.

R. Todd Jensen, recently joined ACC as the General Counsel & CFO. For the past 10 years, Mr. Jensen was the General Counsel & CFO for Cheyenne Concrete Company, a regional

construction holding company. Mr. Jensen has 13 years of legal, cash and financial management, tax consulting, transaction and litigation experience involving a large variety of finance, leasing, real estate, construction, manufacturing, and related matters.

ACC headquarters in Salt Lake City, Utah, and operates in all 50 states. ACC is a premier

provider of funds for equipment leasing and financing for domestic business. Typical

transaction sizes range from $15,000 to in excess of $10,000,000.

ACC prides itself in being trusted advisors for its leasing clients and collaborative partners. The company's consultative and academic approach helps clients determine the optimal methods to finance their capital equipment financing needs.

If you have any questions or transaction you would like to discuss, please don't hesitate to give your Broker Representative a call at 800-409-5008, Marci Kimball-Slagle @ ext. 1209, Catherine Long @ ext. 1247 or Jacob Hodges @ ext. 1215.

Please visit us on the web at www.acccap.com.

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Will He or Won't He-

Lower the Prime?

by Ron Caruso

The answer to that question will be revealed next week, after Uncle Allen Greenspan and his associates complete their evaluation of the US economy, where it is and where it's going.

The information that is available to the public in this regard is mixed at best, but probably favoring a further cut.

Consider the following:

Consumer spending has stalled-the growth rate was about 4.5 per cent for the months of July and August, and close to zero for September. Has the consumer stopped spending, or just taking a breather before the holidays?

Government spending and spending on housing, which helped prop up the economy late in 2001, and the beginning of this year, rose only slightly in the third quarter, although business investment in buildings, equipment and software increased slightly, reversing a downward trend that had continued through seven consecutive quarters.

The NAM-Chicago reported for October its index of manufacturing activity fell sharply and similarly, the measure of consumer confidence undertaken by the University of Michigan and the Conference Board experienced a sharp decline.

Corporations continue to be reluctant to embark on major capital

expenditures and in some instances are using capital savings to offset revenue shortfalls.

Continued uncertainty over Iraq, combined with the ravages of the stock market and the accounting nightmares, have left Corporate America hesitant to aggressively move forward, absent clear and convincing proof the recovery is on the way.

Will a reduction in the prime help? The cost savings it would engender is probably not the key factor-it's the psychological boost it may give to business, as well as consumers.

A New Wave of M&A?

The leasing industry has gone through a cycle of massive consolidation, embodying acquisitions by the whales of many minnows and some whales as well. Often these took the form of portfolio acquisitions, although in some instances it included personnel. What's next?

I'm glad you asked. Cast your eyes in two directions:

1)Within the leasing industry look for consolidation within the service provider sector, especially the software providers. The number of major leasing players has shrunk dramatically.

Some providers are hanging on by their proverbial fingernails-this time next year, their numbers will have declined.

2)Banks-the stock market has not been very kind to many banks, particularly banks that have foreign loan problems, analyst problems, etc. For example, the market capitalization of Banc One is currently higher than that of J.P.Morgan/Chase. Rumors abound of who is hunting and what are their targets. Some banks have already stated their intention to grow by acquisition. As this occurs, it could reverberate in the leasing industry, as most banks have leasing companies. Remember the math in M&A's: one + one = One and only one leasing company.

Stay tuned.

For more information on these and other breaking news stories,

visit the EFJ's web site:

http://www.efj.com

________________________

Look-Out for ECard

Did you get a virtual postcard or ECard from FriendGreetings.com this morning? If yes, delete it without opening the link.

It was a message I received from a list serve that automatically started to send out to my address book. We believe that our block caught it because I immediately started to get error messages indicating non-delivery.

If you receive any message like that, please DELETE it and do not click on the link as it appears to duplicate and send additional messages to any addresses in your in box. The list serve manager from which it originated has been contacted.

I regret this incident and hope you did not receive any ECard message from me this morning

Dennis Brown

ELA

(Leasing News received it: )

Greetings!

has sent you an E-Card -- a virtual postcard from FriendGreetings.com. You can pickup your E-Card at FriendGreetings.com by clicking on the link below.

http://www.friend-cards.net/pickup/pickup.html?code=Kit&id=0111021

Message:

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

Kit,

I sent you a greeting card. Please pick it up.

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

Chase Industries--First Paid Classified Help Wanted Ad

Sales: National "UAEL"

10 year national company with 7 offices specializing in the medical and IT

markets. Other equipment considered. Seeking professionals with a solid

book of business and high ethics. Exceptional support, rates, and commissions.

Some expenses paid. Locate anywhere .

Email:gsaulter@chaseindustries.com

Gary Saulter

Chase Industries, Inc.

109 Ottawa Avenue

Grand Rapids, MI 49503

800-968-5000

Chase Industries is our first “paid” Help Wanted advertiser. In fact, he has chosen

the three month plan. His company is expanding. He believes he will be

hiring for the next three months.

Job Wanted, Outsourcing, attorneys are still free at Leasing News Classified.

There are no more “free” help wanted ads effective today. As a courtesy,

the current adds will run through November 14th.

Effective November 15, there are no restrictions on maximum of 25 words, plus

belonging to a leasing association will no longer be a requirement.

http://65.209.205.32/LeasingNews/PostingFormWanted.htm

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Note from the publisher:

Not taking my laptop with me on vacation. Going first to New York City,

then to Boston as my son Petty Officer Dashiell Menkin, Safety Officer,

Second Class Diver, Gunner, Electrician mate, ship USS Preble will be

commissioned November 9^th. No e-mails until November 13.

See you then. Kit Menkin