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Leasing: The Next Generation
At the launch of its annual sales meeting, a senior executive of an international company remarked that if the payment obligation had a hell or high water payment obligation, his company would try to finance it.
With Congress making tax-oriented leasing more and more difficult to undertake, leasing companies must look for additional sources of business in order to continue to grow their portfolios and justify their existences. Although the general leasing market is growing, the rate of increase may not be sufficient to justify the number of companies currently in the market. Leasing companies must look toward the next adjacent markets in order to continue to expand and prosper. This article will focus on a number of potential adjacent markets that, while not specifically equipment financing, may be structurally similar to a lease transaction.
The hallmark of a lease transaction is a hell or high water periodic payment obligation from an obligor to a financier on a periodic basis. The payment obligation is often secured against an asset, upon which the leasing company could realize in the event that the obligor fails to make payments. With the expansion of high technology, and with the need to grow markets generally, leasing companies have been financing transactions with increasing amounts of nontraditional assets, with such assets having little or no liquidation value. A classic example of this is software financing where the finance company's security is intellectual property, which, by its very nature, cannot be resold. Further, in many equipment and software financing transactions, it is not uncommon for services and other soft costs to be financed. Increasingly, the lease transaction is nothing more than a promissory note from an obligor secured by little or no asset value. Leasing companies typically are willing to enter into these transactions owing to the stream of payments that the obligor is willing to make as well as the covenant of the obligor.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?