In The Marketplace
Highlights of the latest equipment leasing news from around the country.
Is It a True Lease or a Loan?
<i>Part One of a Two-Part Series.</i>Anyone who has been in the leasing business for much time at all understands that a transaction that the parties describe as a "lease" can be either a "true lease" where the lessor owns the leased equipment or a "loan" which results in the lessee being the owner and the lessor having merely a security interest. The latter is commonly referred to as "disguised security interests" or "leases intended as security" or "financing leases." Many people also have a general understanding of the distinction between the two, and most of those reading this article have heard one person or another proclaim the bright-line rule that a lease with a dollar purchase option is a loan and a lease with a fair market value purchase option is a true lease.
Circuit Court Ruling on Nonmonetary Defaults Sets Up Conflict Over Bankruptcy Code
A recent circuit court decision regarding the interpretation of section 365 of the Bankruptcy Code has set up a conflict between two circuits. On March 15, 2004, the Court of Appeals for the First Circuit issued an opinion regarding whether bankruptcy debtors are required to cure nonmonetary defaults prior to assuming unexpired leases under section 365 of the Bankruptcy Code, 11 U.S.C. §365. <i>In re Bankvest Capital Corp. (Eagle Insurance Co. v. Bankvest Capital Corp.)</i>, 360 F.3d 291 (1st Cir. 2004). The First Circuit found — expressly contrary to a holding of the Ninth Circuit Court of Appeals — that debtors are not required to cure such defaults, resulting in a split in the circuits over a very widely used section of the code.
Leveraged Lease Gone Bad? Avoid the Courtroom with Mediation
Throughout the 40-year history of U.S. leveraged leasing, deals have occasionally gone bad. Lessees default, markets change, equipment loses value ' sometimes even the best planned and executed deal may turn out to be the biggest problem in a lessor's portfolio.
The Top 10 Reasons Most Attorneys Don't Do Marketing
... Any high school business student knows that marketing is an important and mandatory part of any business. This comes as a shock to attorneys who often conceive of themselves as belonging to some sort of 19th century guild. ...
Small Firm Marketing: How to 'Think Big'
The competition is heating up and smaller firms are in the hunt for ways to appear larger and have capabilities generally reserved for larger firms. The good news is that perception can become reality. Here are a few ways to "think big."
Thinking Outside The Booth
When creating a marketing plan, the topic of exhibiting at trade shows invariably comes up. If your firm determines that a trade show will be a beneficial part of the marketing mix, it must be seamlessly integrated into the firm's marketing and sales plan rather than it being treated as an isolated event. This is not to say that the big show cannot be the crowning event of the year or as a kick-off for new promotions. <b>Make the trade show part of a Master Plan. </b>
Strategic Planning: Look Before You Leap
The market is asking a great deal of law firms these days. The economy is still unpredictable, clients are demanding additional value at the same costs, and client loyalty is not what it used to be. As a result, many firms are struggling with instituting internal management controls that emphasize profitability and synergy in addition to practice excellence. <br>Frankly, the move by law firms to become more strategically oriented is reactionary. If you ask most lawyers, they did not expect management and planning to be a part of their daily duties when they entered law school. While some have embraced their new role, very few have done it before. An even smaller fraction is formally educated in the discipline of building strong businesses.
<i>Media & Communications Corner</i> <b>Creating an Effective Philanthropy Communications Campaign</b>
Whether your firm provides pro bono work for the indigent, sponsors a race for charity, or provides grant money to a worthy cause, you should consider publicizing your charitable works. News coverage of your firm's good works will elevate its standing in the public's mind and creates more loyal clients. <p>Of course, there is a fine line between doing good for good's sake, and the perception of flagrant self-promotion. For this reason, a philanthropy communications plan must be developed with sensitivity and great care.
Internet Software Piracy Is Not Fair Use
In a decision interpreting the criminal offenses provision of the Copyright Act (17 U.S.C. '506), the Seventh Circuit Court of Appeals has held that a criminal conspiracy to pirate software did not constitute "fair use" simply because the Web site to access the software was operated by a university professor. <i>U.S. v. Slater</i>, 348 F.3d 666 (7th Cir. 2003). The Seventh Circuit found "preposterous" the defendant's argument that Internet piracy could become authorized under the fair use doctrine by using a professor as a Web site operator.
