What You Need to Know About a Debtor's Leased Computers
December 01, 2003
Every lessor and bankruptcy professional understands that the Chapter 7 trustee has the duty to investigate the financial affairs of the debtor and to ensure that books and records are properly turned over in accordance with Section 704. The debtor has the obligation, under Section 521(4), to "surrender to the trustee all property of the estate and any recorded information, including books, documents, records, and papers relating to property of the estate, whether or not immunity is granted under Section 344 of this title." Likewise, Chapter 11 and Chapter 13 trustees and debtors have similar duties and responsibilities.
The Leasing Hotline
November 01, 2003
Highlights of the latest commercial leasing cases from around the country.
In The Marketplace
November 01, 2003
Highlights of the latest equipment leasing cases from across the country.
FASB Issues Additional Guidance on FIN 46
November 01, 2003
On July 23, 2003, the Financial Accounting Standards Board (FASB) approved the issuance of five FASB Staff Positions (FSPs) providing guidance on the application of FASB Interpretation No. 46, Consolidation of Variable Interest Entities. (An FSP is the means by which the FASB staff communicates its views on the proper application of FASB literature when it believes there is only one acceptable interpretation. Prior to February 2003, FASB staff guidance was communicated through Staff Implementation Guides or announcements at meetings of the FASB's Emerging Issues Task Force.)
Dueling Provisions: Creditor Prevails in Showdown Between Bankruptcy Code Sections
November 01, 2003
A Missouri bankruptcy court has permitted a creditor to take possession of spare aircraft parts and equipment from a debtor despite the fact that the creditor failed to perfect its security interest in the equipment. In an issue of first impression in the Sixth Circuit, the court held that under the plain language of Section 1110 of the Bankruptcy Code, a creditor, as a conditional vendor, had a right to take possession of the collateral pursuant to its agreement with the debtor, and that this right was not limited or otherwise affected by any other section of the Code (including Section 544) or by any power of the court. <i>Vanguard Airlines, Inc. v. International Aero Components, Inc.,</i> 295 B.R. 908 (Bkrtcy.W.D.Mo.,2003).
Consumer Vehicle Leasing Survey Details Cost of Vicarious Liability
November 01, 2003
The Association of Consumer Vehicle Lessors (ACVL) of Nashville, TN has released its "New York Vicarious Liability Survey," which casts an ominous cloud over the future of consumer vehicle leasing in New York State. The survey, conducted in September 2003, details the magnitude and effects of vicarious liability suits against ACVL member companies in New York from Jan. 1, 2000 to June 30, 2003. The results evidence the enormity of the vicarious liability claims filed against New York consumer vehicle lessors and explain why some ACVL member lessors have suspended their leasing programs in New York altogether while others have imposed special fees for leases written in New York.
Uniform Fraudulent Transfer Act Claims in Florida Need Not Be Stayed Until Judgment
November 01, 2003
In a Sept. 25, 2003, opinion, the Florida Supreme Court held that a claim under the Florida Uniform Fraudulent Transfer Act (FUFTA) does not need to be stayed until a judgment is obtained against the alleged fraudulent transferor. <i>Friedman v. Heart Institute of Port St. Lucie, Inc.,</i> 2003 WL 22208004 (Fla. 2003).
In the Marketplace
October 01, 2003
Highlights of the latest equipment leasing news from around the country.
The Unfriendly California Skies: Avoiding Sales/Use Tax on Aircraft Purchases
October 01, 2003
Imagine getting slapped with a $100,000 past-due tax bill from the state of California several years after you purchased an aircraft, and you don't even live in that state. Think it can't happen? Better think again, as this type of scenario plays out with increasing frequency as California grapples with perennial budget shortages.
A Primer on Portfolio Management Options for Parents and Captives
October 01, 2003
Imagine receiving a call from corporate indicating that your captive team has done a wonderful job of providing financing for your manufacturer parent organization. In fact, as a result of this excellent performance the parent company's leverage ratio is reaching the point that its financial rating may be reduced by the rating agencies. This is the type of good news/bad news call most captive managers would rather not receive.
