Clarity Ahead for Enforcing Jurisdiction Clauses in the EU?
January 31, 2007
In a recent development that will likely be of interest to lessors and other parties conducting business in Europe, the American Bar Association has urged the U.S. government to sign, ratify, and implement the Hague Convention on Choice of Court Agreements (the 'Choice of Court Convention'). The Choice of Court Convention accomplishes many goals that have long been sought by the United States. Most importantly, it provides a mechanism for the recognition of certain judgments rendered by U.S. courts, namely judgments resolving a dispute arising out of a commercial agreement that was submitted pursuant to an exclusive choice of court agreement. (See American Bar Association, Recommendation adopted by the House of Delegates (Aug. 7-8, 2006), at <i>www.abanet.org/intlaw/policy/investment/hcca0806.pdf.</i>)
IT Leasing on the Rise
December 28, 2006
A recent study commissioned by the Equipment Leasing and Financing Association of America ('ELFA') and produced by The Alta Group examines how U.S. businesses and other organizations acquire critical information technology ('IT') equipment and what factors influence the decision-making processes.
In the Marketplace
December 28, 2006
Highlights of the latest equipment leasing news from around the country.
Motor Vehicle Leasing in Canada: A Guide for U.S. Leasing Professionals
December 28, 2006
In the past, I have written a number of articles directed at U.S. leasing professionals on what they should know about doing business in Canada. These past articles have focused on the leasing business in general as opposed to any particular sector. They discussed broad issues, such as withholding tax and regulatory concerns, but did not examine the specifics of any particular class of collateral or industry sector. During the past several months, I have received a number of inquiries from U.S. lessors in regard to the financing of motor vehicles in Canada. It became readily apparent that not only are there significant differences in law and practice affecting Canadian and U.S. lessors, there also exists a general misunderstanding of the laws of Canada. While generally, Canadian and U.S. law and practice are similar, one area in which they are divergent is motor vehicles. This article, while far from being a complete guide, provides certain guidance as to the most significant concerns.
The Enforceability of Prepayment Premium Provisions
December 28, 2006
Lessors and lenders need to be aware of a recently issued U.S. District Court decision addressing the enforceability of a prepayment premium in a mortgage loan context. The decision in <i>River East Plaza, LLC v. The Variable Annuity Life Company</i> (Slip Copy, 2006 WL 2787483 (N. D. Ill.)) was rendered on Sept. 22, 2006, by the U.S. District Court for the Northern District of Illinois (Eastern Division), construing Illinois law.
Cape Town: Rail Just Around the Bend, Satellites Just over the Horizon
December 28, 2006
For the last nine months, participants in the aircraft leasing and finance industry have been dealing with the newly formed international registry for the registration of interests in aircraft and the changes in substantive law governing aircraft sale, lease, and finance transactions brought about by the ratification of the Cape Town Convention on International Interests in Mobile Equipment and the related Aircraft Protocol. The Convention and Aircraft Protocol were developed and are being promoted by'
In the Marketplace
November 30, 2006
Highlights of the latest equipment leasing news from around the country.
The Credit Agency Reform Act: What Leasing Companies Need to Know
November 30, 2006
Any equipment leasing or finance company desiring to access the debt capital markets must quickly become adept at dealing with a unique feature of that world: the credit rating and its gatekeeper, the credit rating agency. Entering this realm can be a jolt for finance officers used to the relationship-friendly, competitive environment of commercial banks. Dominated by two monoliths, Standard & Poor's and Moody's, the rating agency process is steeped in the clinical analytics of credit modeling. Rating agencies are viewed by many as academic in perspective and, to some, remote and obscure in their approach.
Ninth Circuit BAP Holds Lease Payment Streams Are Not Chattel Paper
November 30, 2006
In August 2006 the U.S. Bankruptcy Appellate Panel of the Ninth Circuit rendered a decision in a case titled <i>In Re: Commercial Money Center, Inc.</i> (<i>Netbank, FSB v. Kipperman</i>), U.S. Bankruptcy Appellate Panel of the Ninth Circuit, BAP No. SC-05-1238-MoTB; Bk.No. 02-09721-H7; Adv. No. 03-90331-H7, holding that payment streams stripped from equipment leases are payment intangibles, not chattel paper, and thereby overturning the bankruptcy court decision. Accordingly, the assignment of the payment streams could be automatically perfected under '9-309(3) of Revised Article 9. Additionally, the court agreed with the bankruptcy court and held that the transactions in this case were loans, not sales, so there was no automatic perfection. Finally, the court held that there were unresolved factual and legal issues as to whether the lender had perfected its security interest in the leases by taking possession through a third-party agent, and therefore remanded the case for further proceedings.
