Libeling Lawnmowers
April 28, 2006
Is it possible to defame an inanimate object such as a plane, or a house, or a painting? Surprisingly, the answer to this question is 'yes.' This sort of claim, which is generically captured by the designation 'commercial disparagement,' has, on occasion, been pursued successfully at trial involving 'hard' assets and can even be employed when the damages are more prospective than actual. The tort falls generally within the penumbra of libel and slander-related claims, but has been overshadowed by the more commonly recognized types of claims asserted against individuals or corporate entities rather than tangible objects. Commercial disparagement claims, when understood, are a useful line of defense to an asset owner ' as well as a hazard for those unaware of the claim's contours.
Dismantling the 'Great Wall' of Risk
April 28, 2006
<b><i>Part Two of a Two-Part Series.</i></b> This two-part article (based on a 2005 white paper issued by ELA's Equipment Leasing Foundation, 'Knocking Down (Great) Walls') looks at the key legal and regulatory issues surrounding investing in the Chinese leasing market. Last month's installment provided a market history and analysis of the current legal and regulatory climate. This month's conclusion examines the experiences of lessors currently operating in China.
In the Marketplace
March 29, 2006
Highlights of the latest equipment leasing news from around the country.
Legislative Update
March 29, 2006
At its Feb. 15, 2006 Board Meeting, the Financial Accounting Standards Board affirmed decisions on the remaining issues concerning the proposed FASB Staff Position FAS 13-a, 'Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease.' These issues had been discussed at the Board's Feb. 8 educational meeting.
Like Kind Exchange for Equipment Leasing
March 29, 2006
Competitive pressures in the Equipment Leasing Industry continue to build into 2006. Although industry surveys project a healthy 7% to 8% growth in overall leasing volumes from 2004 to 2006, readily available capital continues to drive down returns as well as margins, especially for the best credit customers. In reaction to these competitive pressures, savvy lessors are increasingly taking advantage of a tax strategy involving the implementation of a Like Kind Exchange ('LKE') Program. LKE Programs enable equipment lessors to systematically avoid current recognition of taxable gain on the disposition of tax leased equipment and defer the requisite payment of state and federal income tax.
Using Technology to Lease Technology
March 29, 2006
Since leasing was first used as a financial tool, pricing has been a complex matter. To price properly, many variables must be taken into account including: funding date, credit rating of lessee, residual assumed, tax rate, term of the transaction, desired spread over an index, etc.
Dismantling the 'Great Wall' of Risk: The Key to Turning Lease Financing into a Mainstream Financial Product in China
March 29, 2006
A growing number of lessors exhibiting cautious optimism are slowly, but successfully, knocking down the 'great wall' that separates them from turning lease financing into a mainstream financial product in China. Investing in the Chinese leasing market can be a sound decision for lessors whose customers are asking for leases there; who can effectively manage the risks; and who are equipped to deal with major differences between the United States and China, which include language, culture, and the number and nature of business regulations.
Assuring the Lessors' Protections Afforded By the Finance Lease
February 28, 2006
Generally, the lessor/lessee relationship is governed by Article 2A of the Uniform Commercial Code (the "UCC"). In many respects, Article 2A mirrors Article 2, treating ordinary lessors like sellers. 2 James J. White & Robert S. Summers, Uniform Commercial Code '13-3 (4th ed. 2005). For example, under UCC '2A-210 the ordinary lessor has express warranty liability similar to that incurred by a seller under UCC '2-313. Additionally, Sections 2A-212 and 2A-213 impose the familiar warranties of merchantability and fitness for a particular purpose on ordinary lessors. A lessee can assert the lessor's breach of these warranties by effectuating setoff, by suit for damages or by withholding performance. <i>Id.</i> Furthermore, where the lessee has filed a petition for relief under Title 11 of the United States Code (the "Bankruptcy Code"), the debtor-lessee may object to the allowance of the creditor-lessor's claim for rejection damages by asserting that the leased equipment was defective or unsuitable for the lessee's particular business.
In The Marketplace
February 28, 2006
Highlights of the latest Equipment Leasing news from around the country.
