2004 June Issue

JUNE 2004
The 13th Annual Monitor 100

FEATURES

A Look at the Industry: Opportunities to Achieve Growth, Cultivate Worth in 2004
By Thomas Wajnert and Steven Sherman
Positive economic trends - combined with the aging of current plants and equipment - are spurring investment in capital expenditures and, in turn, lease volume. In an effort to build value, lessors should revisit past "perfect storms." In other words, they should benefit from history, rather than perpetuate it. (Ref # TRE065)

Rising Interest Rates: What to Expect & Why It's Good for Leasings
By Paul A. Larkins
Since the 1980s, periods of rising interest rates have lasted about 13 months and lessors should be prepared to respond to these changing market conditions. Over the last six months, corporations have been restructuring their balance sheets, freeing up funds for spending. (Ref # TRE066)

In Times of Uncertainty… Appraisers Play a Role in New Product Development
By Kenneth P. Kramer
While there appears to be a certain current hesitance in the industry to enter into major new product development initiatives while waiting for Congress to determine the shape of our playing field, the history of responses to previous leasing tax law changes would indicate that eventually the creative juices will start flowing again. In this article, Ken Kramer discusses how the appraisal professional can contribute to the process. (Ref # TRE067)

Large Ticket Leasing: Responding to Accounting Challenges
By Mindy Berman
Since 2001, the structured finance world has been roiled continuously by accounting changes. In 2004, with new accounting rules issued and implemented, the industry has returned to business. The question is: what happened and what is there left to do? (Ref # LTL013)

The Equipment Leasing Association: Promoting the Industry & Serving its Membership
The Equipment Leasing Association
In a year where the economy is swinging back in the right direction and many equipment leasing industry segments have good news to report; and, at the same time, pending legislation virtually shut down activity in the tax-exempt leasing arena, we thought it an opportune time to have the Equipment Leasing Association articulate its message. Here's what the ELA has to say. (Ref # ASC004)

Syndication Strategies for Growth Organizations
By Douglas Ducray
When a new organization enters the equipment leasing marketplace the goal is to build a sizable asset base that provides the organization with a vital flow of earnings. While syndication may seem counterintuitive to an organization focused on asset growth, with effective strategies in place, syndicated deals can prove to be vital activity for equipment finance companies, no matter where they may be in their lifecycle. (Ref # SYN009)

What Leasing Industry Executives Want Most… Integration as Top Priority
By Mike Pennell
When over 200 equipment and commercial finance executives were asked to rank their top operational issues, they answered in a resounding unison - help us get all the information we need to successfully complete the deal. With so much information required in leasing deals spread across so many stand-alone systems, it's no wonder that the industry is demanding better integration. (Ref # LPR005)

Legal Audits: An Ounce of Prevention; A Ton of Legal Fees
By Barry S. Marks and Kenneth P. Weinberg
Equipment leasing lawyers are routinely lumped into two categories. Litigation lawyers, including bankruptcy counsel, clean up the mistakes made by transactional lawyers (the seasoned type), including those who draft documents and close transactions. The continuing growth of leasing litigation argues for the creation of a third category: the legal auditor. (Ref # LGL1025)

Know Thy Customer… Financing Your Customer's Next Aircraft
By Dave Labrozzi
As a lender in the corporate aircraft space, there are several things one needs to appreciate in order to successfully close a deal - including the needs of the customer, the needs of the aircraft broker and the specific nuances associated with aircraft financing. An accomplished lender will examine a customer's overall balance sheet and help them determine what options best fit both their needs and their financial structure. (Ref # AIR033)

Creating an Enticing Menu… What it Takes to Attract & Keep Talented Employees
By Patricia Bingaman
Just as restaurants need an enticing menu and competent serving staff to attract customers, lending institutions need to follow this same idea. In the following article, GMAC Commercial Finance shares how it places extra emphasis on fostering a work environment that attracts - and keeps - exemplary employees. (Ref # PER013)

Remarketing Capabilities: Delivering Greater Value to a Parent Company
By Christopher Townsend
With more than $35 billion in assets and 125,000 customers in 40 plus countries worldwide, IBM Global Finance's asset recovery services team receives 22,000 IT assets each week. Combined with more than 20 years of experience, these skills have created what may be the optimal product disposition process. (Ref # EQM131)

Meeting the Challenge… Growing Leaders from Within
By Lynda Jackson
Investing in leadership yields long-term dividends and delivers results that will bolster an organization long after the current fiscal period has passed. With current leaders and industry veterans approaching retirement age and an anticipated shortage of up and coming younger professionals, it is more important than ever to develop leaders internally. (Ref # PER012)

De Lage Landen Financial: Investing in People
An Interview with Ronald Slaats, Chairman of the Americas Division of De Lage Landen International B.V. (Ref # CPR088)

Washington Mutual EF: Building a Foundation by Attracting Talent
An Interview with Rick Kurz, First Vice President & Manager, Washington Mutual Equipment Finance (Ref # CPR089)

Commerce Commercial Leasing: Disciplined Approach and Still Growing
An Interview with Tom Shoemaker, President of Commerce Commercial Leasing, LLC (Ref # CPR090)

Popular Leasing: Significant Relationship Paid Quick Dividends
An Interview with Ken Eisler, President of Popular Leasing (Ref # CPR091)

Merrill Lynch Capital: A Tightly Focused Approach
An Interview with Rick Remiker, Managing Director of Merrill Lynch Capital (Ref # CPR092)

GMAC Commercial Finance: A Crystallized Business Plan, A Well Known Name
An Interview with Lee Palm, President, GMAC Commercial Finance, Equipment Finance Division (Ref # CPR093)

RBS Lombard: Moving Up… Right on Schedule
An Interview with Laird M. Boulden, President of RBS Lombard (Ref # CPR094)

Canon Financial: Sticking To The Basics, Poised For Growth
An Interview with Albert E. Smith, President of Canon Financial Services Inc. (Ref # CPR095)

COLUMNS

CAREER MOVES
The First Ninety Days: How to Spell S-U-C-C-E-S-S
By Jim Pawlak
You accepted the job offer. You start on Monday. What you do during your first 90 days on the job will spell success or failure.
(Ref # JBS082)

LEGAL WATCH
Hell or High Water… Not Always Watertight for Lessors
By Andrew K. Alper
There are a number of new cases which involve the issue of damages. Pursuant to Article 2A-407, in the case of a finance lease that is not a consumer lease, a lessee’s promises under the lease contract become irrevocable and independent upon the lessee’s acceptance of the goods. (Ref # LGL1026)

DISPATCHES FROM THE TRENCHES
From Limited Liability Clauses to Forum Selection
By Kenneth P. Weinberg, Esq.
This issue of Dispatches from the Trenches discusses the dangers associated with having lessees execute acceptance certificates prior to delivery of the equipment; reasons why broker-funder agreements may need limited liability clauses; and forum selection clauses.
(Ref # LGL1027)