2002 February Issue

FEBRUARY 2002
Risk Management Issue

FEATURES

Demands Increase On Asset Managers
By Marcia D. Parnell
For asset management professionals, business and industry changes have had a singular and large result-more equipment to manage-and an even greater emphasis requirement than ever on value optimization. (Ref # EQM106)

The Risk of Appraisal… Managing the Process
By Bix Weir
Valuing a leased asset, especially at a down point in the market, can be a very hazardous endeavor for both the lessor and the lessee. This is particularly true for an asset that is difficult to value. There are many things a lessor can do to protect its interests by avoiding some major pitfalls and effectively managing the appraisal process. (Ref # EQM107)

The Third Time Was A Charm After A Trio Of Successful Careers, Abe Bernstein Retires
By Kevin Riordan
An interview with Abe Bernstein, a 20 year veteran of the equipment leasing industry. (Ref # PRO057)

Risk Management In An Economic Downturn
By Richard K. Ellsworth
The current economic downturn has highlighted the importance of risk management when formulating business decisions. This challenging economic period serves as a vivid reminder of the importance of ongoing economic due diligence with regard to lease transactions.
(Ref # EQM108)

Extending Your Technology Platforms With Agile Software
By Gary DeGregorio
Many leasing and financial services companies are only inching their way toward the use of cutting-edge technologies to achieve key business objectives. That being the case, larger lessors are seizing the opportunity to provide technology platforms to a wide range of customers and partners. (Ref # TEC0096)

Tough Market for Remarketing
By Kevin Riordan
The fallout from what America hopes will be an extremely short-lived recession is being felt across the board in the equipment leasing industry. And the specter of accumulating inventories has some asset and risk managers rethinking their approaches-while others are focusing on core values and time-tested disciplines. (Ref # EQM109)

Section 179: Potential Selling Tool?
By Shari L. Lipski and Joseph G. Bonanno, Esq.
The overall effect of IRC Sec. 179 allows an equipment user, whether the equipment is acquired through an outright acquisition or lease or other financing tool, to take a full year's depreciation on property that is 'placed in service' before the end of the year, even though the equipment may not have been actually used by the Lessee or equipment owner. (Ref # LGL074)

S.O.B.'s… Emerging Trend In Leasing
By Mark A. Belec
There is no silver bullet to take a lessor to elite status-but there are three elements which will likely comprise successful lessors in the future. These elements are Software, Orgware and Brainware. We will explore S.O.B.'s and how these relate to leasing / portfolio management. (Ref # TEC0097)

Two Different Worlds-Technology vs Capital Equipment Leasing Portfolios
By Paul Wride
The differences between Technology and Capital Equipment Leasing Portfolios are substantial and the seasoned professional Portfolio Manager must know the differences and have the expertise to manage these transactions or the consequences could be disastrous.
(Ref # TEC0095)

The Lease Broker: An Endangered Species?
By Jim Fleming
Industry experts are portending continued woes for the lease broker. Brokers must have houses to place their paper. The continued exodus of funding sources from the marketplace is one of the primary reasons for such foreboding. (Ref # BRK018)

SPECIALTY LENDING SUPPLEMENT

ABL Revolver/Term Loan: Structuring to Mitigate Risk
By G. Alexander Cole
An ABL Revolver/Term Loan can be effectively structured together, to mitigate the risks. Such structuring, as well as the continuing management of the account, requires skillful ABL lenders to analyze the credit and collateral, structure the credit facility, and monitor the loans throughout the facility term. (Ref # ABL013)

To Protect & To Serve - Field Examiners and Field Examinations
By Joseph A. Heim
The field examination is a policing function intended to attest to the accuracy, reliability and quality of the borrower's loan collateral. The lender's ability to get out of a loan whole depends on the accuracy of this analysis. (Ref # ABL014)

Excess Inventory … Generating "Hidden Gold"
By Christopher Cooper
More often than not, a lot of electronic components get lost in the shuffle as liquidators, auctioneers, and recovery firms sell capital assets and inventory. Products and equipment which come off lease, get relegated to some warehouse where it sits in storage.These once valuable items have an uncertain future. (Ref # ABL015)

Construction Factoring: Financing Tool That Comes of Age
By Howard Chernin
Electrical contractors regularly face late payment problems from construction companies and governmental entities. While some state and local governments have attempted to remedy this problem with legislation and regulation, late payment abuses have reached epidemic proportions in the construction industry. (Ref # ABL016)

COLUMNS

CAREER MOVES
Telltale Signs of Stress
By Jim Pawlak
STRESS: Work, or the lack of it, money problems andhealth issues are major causes of distress. Stress is pres-ent each and every day of each and every adult life. If youdon’t learn to manage stress, it will manage you. (Ref # JBS059)

LEGAL WATCH
Jurisdictional Issues and the Internet
By Andrew K. Alper
Everyone uses the Internet. Leasing companies con-ducting e-business throughout the country need tobe acutely aware of potential jurisdictional issuesarising out of the use of the Internet. (Ref # TEC0098)