2003 July/August Issue

JULY/AUGUST 2003
Technology & Leasing

FEATURES

Get Back in the Game… Aligning IT & Business Goals
By Denis Stypulkoski
The secret to effective use of technology is to think big - envision the company's future place in the market and its role in its industry, develop a strategy to make that vision a reality, and base all IT decisions and investments on how well they serve the goals of the business strategy. (Ref # TEC0125)

Web Services Technology… Big Promises Demand Change
By Peter Hyne
The leasing industry is well-positioned to show how Web services can positively influence the delivery of specialized financial services across the entire sector. For effective implementation, financial service industry players will need to cooperate in new ways.
(Ref # TEC0126)

IT Initiatives & Today's Economy: A Buyer's Perfect Storm
By Cameron Krueger
Today we have an IT service offering that is better than it has ever been facing a market that is reluctant to invest in IT initiatives. It's the IT buyer's equivalent of a perfect storm. Once buyers realize that this is the time to be making investments in upgrading their systems capabilities, most wonder where to begin. (Ref # TEC0127)

Technology, Tools & Services: Lessors Do More With Less
An Interview with John Rindone, Chief Executive Officer of Cornerstone Software
(Ref # TEC0129)

KEF's Steering Committee: Creating a Blueprint That Blends Technology & Strategy
By Melisa R. Carter
As is the case with most enterprise-wide technology initiatives, Key Equipment Finance had a goal to develop a smart, business-oriented, technology management infrastructure that supports process excellence and maintains a strong customer focus. This article details the approach KEF took to achieve that objective. (Ref # TEC0128)

Information a la Carte: A Partnership Solution for Customer Service
By Nancy Kaysen
Recently IDS and BiT partnered to bring innovative solutions to IDS' Customer Care module that gives customers and dealers access to information and lets them transact business over the Internet. The result is a one-stop-shot for web-based service implementation allowing customers to concentrate on what they do best: build their business. (Ref # TEC0130)

What's All This About Lessor Vicarious Liability?
By Elaine Litwer
The statute of vicarious liability is being hotly contested and has caused New York lessors to pay out almost $1 billion in 1997. In addition, Chase Auto Finance was ordered to pay $28 million in one Rhode Island case. In the following article, Elaine Litwer, Legislative Coordinator for the National Vehicle Leasing Association discusses the antiquated law and the Vicarious Liability Coalition's current fight to repeal it. (Ref # TEC0131)

A Clean Sweep… Making Sure Refurbished Drives Don't Recycle Private Data
By Kathy Ferguson
"Disk sanitation" is taking on greater importance as more and more data storage devices are refurbished and reenter the marketplace. So how does an organization ensure that data is erased from a storage device before it is disposed of or resold via used equipment markets? (Ref # TEC0132)

Leasing Technology Playoffs: You'll Need A Scorecard!
By Andrew Lea
As IT budgets have been hard hit in the leasing technology sector, there has been a proliferation of technology providers entering the equipment leasing arena. With so many competitors vying for a limited market, the technology buyer has to wonder: who will be left standing? (Ref # TEC0134)

Front-End vs. Back-End Automation: Resolving a Technological Dichotomy
By Steve Lundergan
In leasing companies, there are two equally important, interdependent divisions - lease origination and accounting. Typically, lessors are inclined to automate the back-end but not the front-end. Yet, are the consequences of losses credited by human error, oversight, and fraud at the front-end any less threatening than those potential losses created at the back-end? (Ref # TEC0135)

ALSO IN THIS ISSUE

Striking the Right Balance, GreatAmerica Leasing Corporation
In today’s marketplace, relentless competitive pressures and rising customer expectations can be challenging for any equipment lessor to strike the right tech-touch balance. GreatAmerica Leasing doesn’t regard high-tech and hightouch as incompatible — it sees them as complementary. (Ref # CPR083)

COLUMNS

CAREER MOVES
Seniority vs. Experience
By Jim Pawlak
Robert writes, “I’m over 50 and I’ve been job hunting for seven months. I want to tell you that age discrimination exists. Employers generally prefer hiring younger people because they’re cheaper. They believe younger workers will work longer hours without complaining.”
(Ref # JBS073)

LEGAL WATCH
District Court Reverses “First Day” Order in K Mart Corporation Case
By Lesley Anne Hawes
The District Court for the Northern District of Illinois joined other courts in rejecting a debtor’s ability to pay unsecured creditors for pre-petition goods and services prior to confirmation of a plan and reversing a so-called “first day” order authorizing those payments in the K Mart Corporation bankruptcy. (Ref # LGL107)

TOP GUN
Successful Closings: Controlling Your Destiny
By Michael Granieri
Although a great deal has been written on the subject of the benefits of leasing, there is far less material available on how to win competitive leasing bids. In this day and age, you must have the tools to beat brands X and Y if you want to be a consistent winner.
(Ref # SAL129)

DISPATCHES FROM THE TRENCHES
Lease Vs. Loan Under UCC: Applying the Two-Part Test
By Kenneth P. Weinberg, Esq.
There are several tests for determining whether a transaction that is labeled as a “lease” constitutes a true lease or a loan (loans are sometimes referred to as “leases intended as security”, “financing leases” or “disguised security interests”). The proper test to Lease Vs. Loan Under UCC: Applying the Two-Part Test apply depends upon the reason for characterizing the transaction. For example, a different test determines whether a transaction is a true lease for federal tax purposes than the test applied when determining if a lease is a true/operating lease for accounting purposes. (Ref # LGL108)