Substance, Not Form, Dictates Characterization of Assignment of Lease
January 28, 2005
In a recent decision, the Tenth Circuit held that an assignment of lease and certain lease-related equipment was a secured transaction, and not a true sale, despite the execution of a bill of sale from the assignor to the assignee. <i>Stillwater Nat'l Bank and Trust Co. v. CIT Group/ Equipment Financing, Inc.</i>, 383 F.3d 1148 (10th Cir. 2004).
In The Marketplace
January 28, 2005
Highlights of the latest equipment leasing news from around the country.
Valuing Like Kind Exchanges: Is It Too Good to Be True?
January 28, 2005
How would you as a lessor like to increase your after tax income by millions of dollars? How would you as lessor like to increase spreads by 30 basis points? Would you like to do this without having to cut costs or take the risk of creating a new product, entering a new market and hiring lots of staff? The answer to these questions of course is "yes," and it sounds too good to be true as the way to get there is to use a gift from the IRS ' implement a Like Kind Exchange ("LKE") program in your leasing business.
Malpractice in the Line of Duty: Who Catches the Bullet?
January 28, 2005
A traditional requirement in many sophisticated equipment leasing and financing transactions is the closing opinion, in which an attorney or law firm is requested to opine on a variety of relevant topics, ranging from proper corporate or partnership approval of the transaction in question, to the legality, validity and enforceability of one or more material agreements. Oftentimes, there may be multiple closing opinions issued in respect of the closing, with certain opinions being rendered by internal counsel for one or more of the transaction participants, and another set rendered by external counsel.
Equipment Leasing as a Current Financing Strategy for Middle Market Companies
January 03, 2005
Equipment leasing remains a viable tool for middle market companies in today's environment. The Equipment Leasing Association of America (the "ELA") estimates that of the $668 billion spent by U.S. business on productive assets in 2003, $208 billion, or 31.1%, was acquired through leasing, and for 2004 the ELA projects that leasing activity will grow to $218 billion, or 30.7 cents of every dollar American businesses will invest in equipment.
Weighing Risks and Rewards in Health Care Financing
January 03, 2005
The United States spends $1.4 trillion on health care annually, translating to the potential for $300 billion in health care financing. Those are numbers that deserve more than a passing glance. However, according to a recent survey of U.S. health care leasing published by R. S. Carmichael & Co. and the Equipment Leasing Association ("ELA"), <i>Healthcare Equipment Leasing, 2003 U.S. Market Dynamics and Outlook</i>, only 10 companies controlled 85% of this sector.
Leasing: The Next Generation
December 30, 2004
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.
In The Marketplace
December 30, 2004
Highlights of the latest equipment leasing news from around the country.
Oil Pollution Act of 1990: New Limitations on Liability
December 30, 2004
The risk of oil pollution liability for financial lessors of vessels operating in U.S. waters under the Oil Pollution Act of 1990 ("OPA 90"), 33 U.S.C. §2701 et seq., has been substantially ameliorated under new U.S. legislation, thereby restoring leasing as a more lessor-friendly financing option for vessels that trade in U.S. waters.
