Leasing News

August 15, 2001

Leasing News is delivered free to your computer daily. Contact:

www.leasingnews.org or e-mail direct: kitmenkin@leasingnews.org

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Headlines---

Steve Dallas is “Unknown”

Microfinancial Stock Drops— So Help Me, Joe Bonanno

ePlus Reports Earnings

Bank of America to End Auto Leasing

B of A Press Release exiting its auto leasing

& subprime real estate lending

Fitch Rates B of A Stock Tops

Heller Financial Enters Internet Fray

Special:

Equipment Leasing Association Presents Sales Tax Conference Testimony

##denotes press release

____________________________________________________________

Steve Dallas is Unknown

----- The following addresses had permanent fatal errors -----

<sdallas@unitedcapital.com>

----- Transcript of session follows -----

... while talking to mail.unitedcapital.com.:

>>> RCPT To:<sdallas@unitedcapital.com>

<<< 550 Unable to relay for sdallas@unitedcapital.com

550 <sdallas@unitedcapital.com>... User unknown

( Mr. Dallas was one of our readers. He is now removed as his

e-mail keeps coming back. editor )

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The Truth, The Whole Truth, and Nothing

But the Truth,So Help Me, Joe Bonanno.

Microfinancial..."They have acknowledged they are being invested by the Department of
Justice, primarily for violating the regulations regarding consumer leasing. MicroFinancial contends they are
business leases."

DID YOU MEAN THE DEPARTMENT OF JUSTICE IS INVESTIGATING OR INVESTING IN MICROFINANCIAL???

1995 RED CORVETTE CONVERTIBLE

Carl Rubin

<crubin@cfl.rr.com>

ComCo Equipment Leasing Group Inc.

407-629-7677

( Investigating. You were the only one to catch this typo.

Wow, a 1995 Red Corvette Convertible!!!

Sounds great. Our question as to what kind of car

our leasing readers drive has been very interesting to date.

Seriously, Leasing News has been trying to

be nice to get a comment from Microfinancial. We should

know better as Unicapital, Terminal Marketing, United Capital,

Metrolease, SDI Capital, you name them, never made a comment to us.

They stoned walled us. When there is “bad news”, no one wants to talk.

You can believe most of these companies eventually make the Leasing

News List.

We have been trying to get a full story, all sides, and since readers want to
know what we have collected, so far. My suggestion, make sure

you are sitting down with a cup of coffee or tea, and if it is after hours,

I recommend Scotch on the rocks; here it is. editor )

~~~

Leasing News has been writing about the practices of several leasing companies,

citing ethics, telling readers the government is going to clamp down on these

practices and professionas better start policing the industry, or the government

will.

Copy of Class Action Suit filed against Microfinancial/Leasecomm

http://www.socialaw.com/superior/994177e.html

( too large to reproduce, but you may see on line in entirety, and

it will certainly open your eyes )

( The acknowledge suit, etc. )

From “ Leasescamm” ( their website )

from: http://www.geocities.com/leasescamm/

#1 in Microticket Ripoffs!

Have you been Scammed, Scammed by Leasescamm? Conned, Conned by Leaseconn? You're not alone.

Leasecomm Corporation is a commercial finance lessor in Massachusetts. Thousands of small businesspeople
across the country feel that they have been ripped off. Now finally they're exposing the truth. Join us in our
ongoing discussion. You can post messages on quote.yahoo.com (Yahoo! Finance) discussion of MFI
(Microfinancial Inc.) Microfinancial Inc. is the parent company of Leasecomm. You can join in the
discussion there and tell the stockholders the truth about their investment and talk with other Leasecomm lessees.

http://messages.yahoo.com/?action=q&board=MFI (plus latest stock report )

one posting:

Looks like the Massachusetts AG served papers on MFI and Leasecomm to investigate their leasing practices.
Any wonder why the stock is dropping? You investors may take a hard look at getting out of this unethical
company before you, too get screwed by LC/MFI. BTW, Florida is already investigating their practices. West
Virginia AG has forced LC to amend their practices. California and Arizona AG have coordinated their efforts to
investigate LC. Who's next? Wisconsin? New York? Texas? Connecticut?

In the business community, there is an unwritten saying that every negative experience someone has
with your company requires at least five positive experiences to overcome. LC has literally thousands
of negatives with no positives except in their shallow PR. This company cannot continue as the focus
of media, public pressure, and the government discloses their unconscionable contracts, their ruthless
practices, and their moral bankruptcy. They'll try to shift the blame to their dealers, but it is LC/MFI
with Bleyleben and company at the helm that cause so much pain for lessees. No other company treats
so many of the people paying the bills (lessees) as shabbily as LC/MFI. To LC, their customer is the
dealer...and dealer fundings are WAY down. This Ponzi scheme looks about to fall.

The main page of Leasescam:

LAWSUITS: Those of you familiar with Leasecomm Corporation probably already know the tremendous number
of lawsuits they file every year to enforce their contracts. Now there are at least two Class Action lawsuits
against the company.

WHAT CAN YOU DO ABOUT IT:

1. Don't sign the contract unless you know what you're getting yourself into. Many people simply
do not have a choice. If they want the equipment, they have to sign a lease because they do not have the
cash to buy it up front. One reason people give as to why they sign the lease in the first place is that there
are tax benefits. This is simply untrue. The IRS treats finance leases are purchases. You cannot deduct these
payments as expenses. Why is this? Because finance leasing is simply an expensive form of ownership.
By the time you're through paying all that money after say, three to four years, the equipment has little
value anyway. Do you know that a Leasecomm employee told me that she would never sign a Leasecomm
lease? Of course these employees wouldn't tell you this when they're trying to get your business. It's after
that and when they're suing you that they let you in on the truth.

Something else to think about: If you're looking for credit card processing equipment for your brick and
mortar retail store, why not buy it on eBay? Every day people go into business and every day people go
out of business. What happens to used credit card processing terminals? Well if the people leased the
terminals, they have to keep making payments. They can't just send it back to the dealer or lessor. So
they're stuck with useless equipment. Why won't you buy this equipment used for less than 150 dollars
instead of paying over a thousand through finance leasing? If a sales representative from a merchant
processing company tells you that you have to lease the (physical) point of sale equipment, that you
can't buy it, find a different company. Now with special e-commerce processing software you may not
have a choice for buying from a third party.

Finally there is one important point to consider. When you pay for something with a credit card, if you
have been defrauded, you know that you can always take contest the charge. In fact one person
who paid for their home business opportunity with a credit card was able to get out of the deal because
the issuing bank forced a charge back. For the people who bought the same home business opportunity
fraud but leased through Leasecomm, they were not able to get out of the deal. Try sending Leasecomm
a complaint telling them that you've been defrauded. You will not get anywhere. If you signed the
lease and you received the equipment in the mail, they will hold you to the contract. You might think
that paying with a credit card is expensive. However, if you do a real analysis of the rate of return
or interest rate that Leasecomm earns on its leases, you would be astonished. We're talking about
interest rates in the 30s%. Part of that is due to the fact that they discount the purchase price from
the dealer. You are rated as a potential lessee according to your credit breath and depth. The riskier
you are the more they discount the purchase price and higher interest rate they earn. Unfortunately
these higher interest rates would not normally fall under the category of usury (legal name for loan sharking)
because usury refers to loans to consumers and these are leases to businesses. Consumer protections put in
place by law are not present because of the classification of these transactions. In other words you as the
lessee have chosen a form of financing which does not offer certain protections and is really more expensive.

2. Complain to the Attorney General's Office. Dozens of complaints have been sent to the
Attorney General's office. Unfortunately this represents only a small fraction of the number of people involved.

The Commonwealth of Massachusetts
Office of the Attorney General
200 Portland St., Boston, MA 02114
(617) 727-2200.

You can also obtain copies of complaints against Leasecomm. This is public information. Call or
write the same address to receive that information. Sample complaint

3. Complain to the Federal Trade Commission. You can send your complaint to:

Federal Trade Commission
CRC-240
Washington, D.C. 20580

Or call 1-877-FTC-HELP or complain online at https://www.ftc.gov/ftc/complaint.htm.

4. Complain to the Better Business Bureau. Many people have complained to the BBB.
Leasecomm does respond to every complaint and so maintains a satisfactory status with the BBB.
It is important to realize that the BBB has no enforcement power. People could send ten thousand
complaints over there and they would not be able to force Leasecomm to stop its practices.
Therefore it is much more important that you complain to the FTC and to the Massachusets
State Attorney General's Office as they have the power to sue for unfair trade practices.
Both the FTC and the State Attorney General's Office DO NOT act on behalf of individuals.
You cannot expect them to be your lawyer. However, with enough complaints, they may decide
to act against the company.

Go here to view the BBB's reliability report on Leasecomm.

Also, you can Complain Online.

5. If you had a bad experience, tell people about it. Get involved. Post to the
message boards and post to the newsgroups. Don't let these people get away with it.
(For the Message Board Go to ) To reach a broader audience, post to the Usenet.
There is also a site specifically for complaints. Visit
http://www.thecomplaintstation.com/l/leasecomm_toc.htm and
http://www.papersourceonline.com/discus/messages/1649/3159.html to view complaints about
Leasecomm.

If you were defrauded by the vendor of your equipment, make sure that you follow
the above steps to report them to the authorities. You may have recourse
against the vendor, if they have not already gone out of business, as many of
these fraudulent companies do.

MY ADVICE: To everyone who has signed the lease: Despite the similarities with most of the people
signing the leases, each case is different, so it's a good idea to speak to an attorney for legal advice.
Call your state Bar association to get a referral. Based on my own personal experience and the many many
people I have spoken to, here is my "common sense" advice. In no way should this be construed to be
legal advice. I suggest that you pay off the lease. If you do not, they will sue you, and if after obtaining
a judgement against you, you still do not pay, they will enforce their judgment in your state, garnish your
bank accounts/wages, and go after your real assets. All the while interest and attorney fees are being
added and your credit history tarnished. Either way they will squeeze the money out of you. Try to
negotiate a settlement. Get them to drop all of the interest charges and fees if you pay off the lease in full.

from “Fight Back” with David Horowitz on the Web

http://www.fightback.com/CFfightback/bbs/Thread.cfm?Thread_ID=77&mc=33

Author: bjherkimer (bjherkimer@yahoo.com)
Subject: WARNING: LeaseComm and MFI
City: Irvine
State: California

Leasecomm Corporation is a commercial finance lessor in Massachusetts. Thousands of small
businesspeople across the country feel that they have been ripped off. Now finally they're
exposing the truth. Join us in our ongoing discussion. You can post messages on quote.yahoo.com
(Yahoo! Finance) discussion of MFI (Microfinancial Inc.) Microfinancial Inc. is the parent company
of Leasecomm. You can join in the discussion there and tell the stockholders the truth about
their investment and talk with other Leasecomm lessees.

Yahoo! Finance MFI- Microfinancial Inc. (LEASECOMM) Message Board
http://messages.yahoo.com/?action=q&board=MFI

"The underlying product is not relevant... Collecting the receivable is what is relevant.
I make my money by collecting." Peter von Bleyleben, president and CEO of Microfinancial Inc. (Leasecomm)

There is also a site specifically for complaints. Visit http://www.thecomplaintstation.com/l/leasecomm_toc.htm
and http://www.papersourceonline.com/discus/messages/1649/3159.html to view complaints about Leasecomm.

__________________________________________________________________

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ePlus Reports Better Than Expected First Quarter Earnings Per Share of $0.21; Focus On Earnings,
Cash Flow, and e-Commerce Strategy Continues

HERNDON, Va--ePlus inc. (Nasdaq NM:PLUS - news), a leading provider of outsourced e-Business
solutions and services, announced financial results for its first quarter ending June 30, 2001.

Fully diluted earnings per share for the quarter was $0.21, which is $0.03 or 17% better
than analyst's estimates of $0.18 per share.

Phillip G. Norton, chairman, president and CEO stated "ePlus has increased profitability
ahead of expectations during an economic downturn. The total procurement volume of the
company increased 26% to $86.3 million, as compared to the March quarter, and lease
origination volume increased 58%. We generated $10.1 million in positive cash flow during
the quarter and are in a very strong financial position with $34 million in cash and no
borrowings under our line of credit."

"Our e-commerce business has been significantly enhanced by our ProcureNet asset
acquisition, and we are already winning new customers based on the technology" concluded Mr. Norton.

Highlights

-- ePlus completed the purchase of certain commercial software assets and customers from
ProcureNet, Inc., which considerably improved its software and content services offerings,
customer support, and application development capabilities.

-- Released Procure+6.5, an upgraded version of Procure+ based on the technology
assets purchased from ProcureNet. It incorporates ePlus' branded look and feel, enhanced
functionality, and was delivered ahead of plan.

-- Introduced Business Process Outsourcing Services (BPO), including outsourced
accounts payable processing and electronic invoicing, as a component of ePlusSuite.

-- Announced an agreement with Deltek Systems to private label Procure+. The
integration has been completed and Deltek is marketing the product to its 7,500 customers.

-- ePlus announced its first Deltek customer, Michael Baker Corporation, a leading
engineering, management and operations services provider to the construction industry.

-- ePlus implemented its first operating marketplace based on MarketBuilder
(software assets purchased from ProcureNet) for Reynolds and Reynolds, the leading
applications provider for automotive retailers.

-- Contracted with a Fortune 100 company to provide an automated business
process for the procurement and financing of up to $100MM of assets over 3 years,
including automated order entry, on-line asset management and reporting, and electronic invoicing.

-- Increased the number of hosted ePlusSuite customers to 180.

-- Was awarded a state government contract for financing and asset
management for up to $15 million per year for three years including web-based
asset management.

-- Entered into subscription agreements for ePlusSuite having a total annualized
base run rate of approximately $800,000.

E-commerce Business Unit

The e-commerce business now includes all revenues and costs attributable to
ePlus Systems, Inc. and ePlus Content Services, inc. plus ePlusSuite revenues and
associated expenses as in prior quarters.

In the company's e-commerce segment, e-commerce revenues increased 8% to
$1.2 million for the quarter as compared to $1.1 million for the June 30th quarter
in the prior fiscal year. Net e-commerce revenues in the e-commerce segment
increased 5% from $2.4 million to $2.5 million, reflecting a decrease in sales of
technology equipment in the segment. The company had 180 remotely hosted
e-commerce customers on June 30, 2001.

"As we continue to convert our customer base from a transaction fee revenue
model to monthly subscriptions, we anticipate that upfront revenue generation
will be reduced in favor of a recurring and predictable revenue stream" stated Mr.
Norton. "Our e-commerce segment is making progress on many fronts, including
winning new customers in a very competitive environment. Our solution is compelling
forcustomers who want to reduce costs, optimize supplier relationships, automate
processes, and become more efficient. As compared to many of our competitors,
we are able to invest and improve our e-commerce solutions, enabling us to win
customers, gain market share, and position ePlus to capture growth when the economy turns."

Financing Business Unit

In the financing business unit, the Company continued to de-emphasize sales of
leased equipment revenues in favor of retaining leases on its balance sheet and
outsourcing the financial risk of each transaction with non-recourse debt. By doing so,
upfront revenues are reduced and converted into long-term, recurring, and predictable
lease revenues.

As a result, in the quarter ending June 30, 2001, sales of leased equipment decreased 97%
to $452,108 from $16.4 million, and lease revenues increased 26% to $10.8 million from $8.6 million.

Technology Business Unit

The Company has eliminated customers or lowered credit limits to customers in the
telecom and technology sector, and combined with general economic conditions
which has caused many customers to reduce capital spending, the Company's sales
of equipment decreased 35% to $36.5 million from $55.7 million. The cost of equipment
sales decreased 34% to $31.4 million and the gross margin remained at 14%.

Net Earnings

Basic and fully diluted earnings per common share were $0.22 and $0.21 for the three
months ended June 30, 2001, as compared to $0.26 for basic and $0.24, respectively,
for the comparable period the prior year. Net earnings declined 14% from $2.5 million to
$2.1 million.

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Bank of America to End Auto Leasing

By PAUL NOWELL

.c The Associated Press

CHARLOTTE, N.C. (AP) - Bank of America will take a $1.25 billion after-tax charge in the
third quarter to get out of the car leasing and sub prime real estate lending businesses.

The nation's No. 3 bank holding company plans to liquidate its $26.3 billion sub prime portfolio
over the next seven to nine months. The bank said it will abandon the car leasing business
immediately, although it said it planned to manage its $9.7 billion portfolio to the end of the term.

``Both of these businesses have very volatile earnings streams, have become unattractive from
a risk-reward standpoint and have not produced required rates of return,'' said Kenneth Lewis,
chairman and chief executive officer of the Charlotte-based bank.

Lewis told analysts on a conference call Wednesday that shareholder value was one of the
chief factors behind the decision.

``We have said before we want to be able to go full-speed ahead when the economy
improves,'' he said. ``We hope these actions today will help us move ahead sooner.''

The bank has found buyers for its entire sub prime real estate branch network, and was
seeking a buyer for its servicing business.

An unexpected dip in the price of vehicles coming off lease has translated into large losses
for banks and leasing companies. Estimates made three or four years ago of a leased
vehicle's value now can be off by thousands of dollars.

Chief financial officer Jim Hance estimated the bank's loss on each leased vehicle at
about $2,000. ``That business is a non-keeper,'' he said on the conference call.

While it's also been a profitable business for lenders, sub prime lending - writing loans for
risky borrowers - also has been a factor in seven of the last 19 bank failures,
according to the Federal Deposit Insurance Corp.

Among them was the collapse last month of Superior Bank in suburban Chicago.

Last month, Bank of America reported second-quarter earnings of $2.02 billion, or
$1.24 a share, in the three months ended June 30, down from $2.063 billion, or
$1.23 a share, in the same period a year ago.

Shares were up 69 cents Wednesday at $63.25 on the New York Stock Exchange.

On the Net: http://www.bankofamerica.com

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Bank of America Makes Strategic Decision to Exit Under performing Businesses

Businesses Do Not Meet Bank's Commitment to Consistent Results

And High Returns

CHARLOTTE, N.C / -- Bank of America Corporation (NYSE: BAC) today announced
it is exiting its auto leasing and sub prime real estate lending businesses
because they do not fit the company's strategic and profitability objectives.

"We have said for some time that if a business cannot be configured to drive
what we believe are consistent, attractive results, we would exit it. Both
of these businesses have very volatile earnings streams, have become
unattractive from a risk-reward standpoint and have not produced required
rates of return," said Kenneth D. Lewis, chairman and chief executive officer.
"We are committed to achieving consistent, above average shareholder
returns and these actions are aimed at achieving that mission."

Auto Leasing

Margins in the auto leasing business have been dramatically reduced, due primarily
to reductions in used car values caused by economic conditions and other
external influences. The inherent fluctuation of used car values results in earnings
volatility that is not compatible with Bank of America's growth and profitability objectives.

Auto lease originations will cease immediately and the company intends to
manage its existing $9.7 billion portfolio over its remaining term. There will be
no impact to existing consumer customers as the bank will continue servicing
existing contracts until their maturity dates.

The decision to exit the auto leasing business does not impact the company's
continued commitment to the commercial and retail auto loan businesses where
the residual value risk is not present.

Sub prime Real Estate Lending

The profitability of the sub prime real estate lending business is not
commensurate with the associated risk. The company took actions
to improve the profitability of this business; however, these improvements
have not eliminated concerns about earnings volatility, future credit risk and
higher operating costs.

New originations will cease immediately. The company intends to liquidate its
$26.3 billion sub prime portfolio over the next seven to nine months.
The company has secured two buyers for its entire branch network and a
portion of its fulfillment operation. Additionally, it is also looking for a
buyer for the servicing business. There will be no immediate impact on existing borrowers.

Financial Impact

To cover the costs of exiting these businesses, the company will take a $1.25
billion after-tax charge in the third quarter. For context, Bank of America earned
$2.0 billion in the most recent quarter. Approximately 50 percent of the
charge represents the write-off of goodwill associated with these businesses.
The other components include a $253 million after-tax write-down of sub prime
loans necessary for their disposition and a $256 million after-tax increase to the
reserve for estimated auto lease residual losses. The remaining charges represent
adjustments to sub prime real estate servicing values and miscellaneous expenses.

Excluding the impact of the initial charge, these actions are expected to be neutral
to slightly "dilutive" to operating earnings in the near-term as foregone income
in the real estate business is offset by reduced losses in the leasing business.
The company believes these actions pave the way to significantly reduce
volatility in the earnings stream and strengthen the balance sheet.
Remaining capital associated with these businesses will be reinvested.

One of the world's leading financial services companies, Bank of America
is committed to making banking work for customers like it never has before.
Through innovative technologies and the ingenuity of its people, Bank of
America provides individuals, small businesses and commercial, corporate
and institutional clients across the United States and around the world
new and better ways to manage their financial lives.

Bank of America stock (ticker: BAC) is listed on the New York, Pacific
and London stock exchanges. The company's Web site is www.bankofamerica.com.
News, speeches and other corporate information may be found at
www.bankofamerica.com/newsroom.

NOTE: Kenneth D. Lewis, chairman and chief executive officer,
and James H. Hance Jr., vice chairman and chief financial officer,
will discuss this announcement in a conference call at 9:00 a.m. (ET) today.
The call can also be accessed via a Webcast available at
http://www.bankofamerica.com/investor or by dialing 785-832-1523,
ID number 34567. A slide package will be available shortly before the
call at the same address. A replay will be at 402-220-1548.

Forward Looking Statements

This press release contains forward-looking statements with respect
to the financial conditions and results of operations of Bank of
America, including, without limitation, statements relating to the
earnings outlook of the company. These forward-looking statements
involve certain risks and uncertainties. Factors that may cause
actual results to differ materially from those contemplated by such
forward-looking statements include, among others, the following
possibilities: (1) the inability to sell the sub prime real estate branch,
fulfillment or servicing businesses; (2) the inability to dispose of the
sub prime real estate loan portfolio; (3) increased credit costs from
the company's estimate of future leases losses; (4) unexpected costs
and expenses associated with existing auto leasing and sub prime real
estate lending businesses; (5) projected business increases following
process changes and other investments being lower than expected;
(6) competitive pressure among financial services companies increasing
significantly; (7) general economic conditions, internationally, nationally
or in the states in which the company does business, including the
impact of the energy crisis, being less favorable than expected; (8)
changes in the interest rate environment reducing interest margins and
affecting funding sources; (9) changes in market rates and prices
adversely affecting the value of the assets; (10) legislation or regulatory
requirements or changes adversely affecting the businesses in which the
company is engaged; and (11) additional decisions to downsize, sell or
close units or otherwise change the business mix of the company.
For further information, please refer to Bank of America's reports filed with the SEC.

######## ################# #####################

Fitch Affirms Bank Of America Ratings

NEW YORK--Fitch has affirmed the issuer and issue ratings of Bank of America
Corporation (BAC, senior 'AA-') and its subsidiaries. The Rating Outlook
for BAC and its subsidiaries remains Stable. A complete list of ratings
is provided at the end of this release. Fitch's affirmation follows its
evaluation of the strategic and financial implications of BAC's
decision to exit the subprime mortgage and auto lease businesses.

The key financial factors considered by Fitch were the projected
charge to exit the businesses and its influence on near-term earnings
and capital, and the changes expected in the mix and stability of core
earnings from continuing businesses. BAC will take a $1.25 billion
after-tax charge ($1.7 billion pre-tax) in third quarter 2001 to cover
the costs of exiting the two businesses. The charge includes a $685
million write-off of goodwill. The reduction in goodwill combined with
asset write-downs will result in tangible and regulatory capital ratios
remaining near current levels. However, the charge will result in a
material reduction in third quarter earnings. Looking beyond the
immediate impact, management projects that the actions will be
neutral to slightly “dilutive” to operating earnings. Further, Fitch
believes these businesses have added an element of volatility
to BAC's earnings profile, which should now be greatly eliminated.
BAC's management cited an unacceptable balance between risk
and return offered by these two businesses as a key factor to exit
the businesses. This view is not unique to BAC and has produced
similar actions from other providers of diversified financial services.

Fitch's affirmation also encompassed an assessment of strategic
issues. Fitch's ratings for BAC incorporate an expectation that
management will undertake actions to maintain financial stability
and focus the organization on growth opportunities that offer
acceptable risk-return dynamics. Fitch does not believe the
robustness of BAC's geographic and business line diversity is
materially disturbed as result of the decision to exit the auto leasing
and subprime mortgage businesses. Further, BAC was unable
to derive high levels of cross-sell into the customer groups of
these businesses. Therefore, the decision to exit the two
businesses should not alter the growth prospects of BAC's other
retail product lines. While BAC's decision to exit these two
businesses highlights that management was unable to derive
the return and growth dynamics it originally thought these
businesses offered, Fitch finds the issue and the resultant
financial impact to be insufficient to warrant a rating action at this time.

Fitch's evaluation of BAC will continue to focus on its ability
to manage asset quality in what is an increasingly less
stable economic climate in the U.S. Further, Fitch will carefully
consider BAC's ability to source stability and growth in its vast
franchise to provide for an offset to pressures in capital markets
businesses and potentially higher asset quality charges related
to the corporate loan book. Further refinements to BAC's
franchise through additional exit strategies or acquisitions
will need to be assessed in the context of diversity and financial stability.

Issuer and Issue Ratings Affirmed:

Bank of America Corporation

-- Long-term issuer 'AA-';

-- Short-term issuer 'F1+';

-- Individual 'B';

-- Support '5';

-- Senior notes/MTNs 'AA-';

-- Subordinated notes/MTNs 'A+';

-- Preferred stock 'A+'.

Bank of America, N.A.

Bank of America, N.A. (USA)

-- Long-term issuer 'AA-';

-- Short-term issuer 'F1+';

-- Individual 'B';

-- Support '2';

-- Long-term deposits 'AA';

-- Senior notes/bank notes 'AA-';

-- Short-term bank notes 'F1+'.

BankAmerica Capital I, II, III, IV

BankAmerica Institutional Capital A & B

NB Capital Trust I, II, III, IV

Barnett Capital Trust I, II, III

Bank of America Preferred Funding Corp.

-- Preferred stock 'A+'.

BankAmerica Corporation

-- Senior MTNs 'AA-';

-- Subordinated notes 'A+'.

Bank of America Illinois

-- Long-term deposits 'AA'.

Barnett Banks, Inc.

-- Subordinated notes/MTNs 'A+'.

NationsBank Corp.

-- Senior notes/MTNs 'AA-';

-- Subordinated notes/MTNs 'A+'.

Nationsbank, N.A.

NationsBank of Texas

-- Senior bank notes 'AA-'.

Security Pacific Corp.

-- Subordinated MTNs 'A+'.

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Heller Financial Launches First International, Web-Based Equipment Lease
Transaction Platform

CHICAGO, / -- Heller Financial, Inc. (NYSE: HF), a leading provider of commercial
finance products and services, today announced the launch of what may
be the industry's first international, web-based equipment lease transaction platform.

The technology is specifically designed to support equipment leasing
programs for large, global manufacturers and suppliers, making it
easier than ever for them to offer lease financing for their customers'
critical equipment needs. The system's sophisticated underlying design,
technical architecture and use of extensible mark-up language (XML) are unique.
Heller Global Vendor Finance has applied for patent protection of the online
process developed for the platform.

Heller is deploying the web-based platform simultaneously in North America and
Europe. The company expects the technology to be fully integrated into all
of its vendor leasing programs in the United States and Canada plus six
European countries by the end of the year.

"The ultimate goal is to provide a consistent experience to our clients'
customers wherever they are located," said James D. McGrane, Group
President, Heller Global Vendor Finance. "Our web-based platform is the
only one available that is designed to be easily modified for virtually any
country, currency or equipment type, and will be supported by customized
credit-scoring models in most markets. Our clients will benefit from this
flexibility and consistency as they expand their leasing programs for
customers in key markets around the world."

A growing number of manufacturers are requiring lessors to support their
global sales efforts using such a seamless lease platform. Heller's new
fully automated reseller tool allows users to obtain lease payment
quotations online, prepare and submit real-time credit applications,
receive automated credit decisions and secure custom-prepared lease
documents. This makes it easier than ever for equipment resellers and
dealers to submit lease transactions and control the lease process.
In many cases, online lease transactions are completed within minutes.

Highlights include instant lease quotes; virtually instantaneous credit
decisions; 24/7 real-time lease status information; online dynamic
lease documents available on demand; and easily accessible online
support and tutorials integrated into the system.

Going forward, Heller expects to complete a high percentage of its smaller,
standardized "flow-oriented" transactions via the new online system.
Larger transactions that require customized terms will continue to be
evaluated using a manual underwriting process.

Heller Financial, Inc. is a worldwide commercial finance company
providing a broad range of sophisticated financing solutions. With
$20 billion in total assets, Heller offers equipment financing and leasing,
sales finance programs, collateral- and cash flow-based financing,
financing for healthcare companies and financing for commercial real
estate. The company also offers trade finance, factoring, asset-based
lending, leasing and vendor finance products, and programs to clients
in Europe, Asia, and Latin America. Heller's common stock is listed as
"HF" on the New York and Chicago Stock Exchanges. Heller can be
found on the World Wide Web at http://www.hellerfinancial.com

### ################ #####################

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ELA Asks Streamlined Sales Tax Project, "Who's in Charge?"

National Conference of State Legislatures

Executive Committee Task Force on

State and Local Taxation of Telecommunications and Electronic Commerce

Public Hearing

Streamlined Sales Tax Project

San Antonio, Texas

Friday, August 10, 2001

Presented By

Dennis Brown

Vice President

State Government Relations

Equipment Leasing Association of America

I appreciate the opportunity to submit comments on behalf of the 850
member companies of the Equipment Leasing Association, ELA. I am
Dennis Brown, Vice President, State Government Relations for ELA.
Our members finance commercial equipment leasing transactions in
the business-to-business marketplace. Lease financings range from
transportation equipment such as aircraft, rail cars and vessels, to
high-tech equipment including main frame computers, PC networks,
medical and telecom equipment, to office equipment encompassing
phone systems, copiers and fax machines. These commercial lease
financings are projected to reach $280 billion this year.

The equipment leasing industry has been active with the NCSL Task
Force and the Streamlined Sales Tax Project from the beginning. Both
organizations have offered us an attentive ear. On behalf of ELA
members, I want to express appreciation for the time granted our industry.

This endeavor by states to simplify sales tax is a worthy effort to
coordinate the legislative and executive branches of state government,
neither of which is advocating any new taxes on commerce. Sales
tax has been around for decades and interstate sales tax agreements
are nothing new. This effort at streamlining merges new technology
with old problems of administration between taxing jurisdictions.

Differing opinions and work products made public by the legislative
and executive branches have given some the belief that a shared
vision does not exist regarding sales tax simplification. I know
this to be incorrect. However, it is important that differences
be resolved in shaping the new governing structure. The legislative
and executive branches must coordinate to present a consistent
message that answers pending questions.

A central question the new governing body has is "who’s in charge?"
It must answer this question, without governors or state legislators
feeling their prerogatives have been trampled. The process should
involve the private sector as a partner, not as an adversary.
Will the new governing body have one chairperson or co-chairs?
Will an executive committee be formed and what powers would
it be given? What will be the threshold for sending model legislation
to states, a majority of states attending a meeting, simple
majority of all participating states or a super majority? What
responsibilities will the NCSL Task Force and the Streamlined Sales
Tax Project assume in this new governance structure? These are
only a few of the questions to be answered.

In summation, the NCSL Task Force and Streamlined Sales Tax
Project have worked with the equipment leasing industry in a
cooperative spirit. We are grateful and appreciate this
opportunity to present public comment.

Mr. Brown further explained to Leasing News:

ELA presented testimony to the National Conference of State
Legislatures (NCSL) Task Force assigned the Streamlined Sales
Tax issue during the NCSL Annual Meeting. The NCSL Task Force
sought comment regarding the upcoming assembly of delegates
to the Governing States organization that will finalize and
administer the interstate agreement. ELA testimony noted
uncertainties created by differing work products released by
the legislative and executive branches and cited organizational
challenges that must be resolved before the Governing States
convene. Appreciation was expressed for the attention given
leasing issues by the NCSL Task Force and Streamlined Sales
Tax Project (SSTP). ELA's testimony will be posted Thursday
in the news section of <http://www.elaonline.com/>

A major topic of discussion was Business Activity Taxes (BAT).
NCSL Task Force leaders regret the linkage of BAT to streamlining
fostered in congress by Streamlined Sales Tax Project opponents.
The NCSL Executive Committee gave the Task Force authority to
address BAT and a review of BAT issues will be instituted. NCSL
Task Force members oppose merging BAT with sales tax discussions
and will deal with it outside streamlined sales tax deliberations.
They see it as an entirely different issue.

Streamlined Sales Tax Project Co-Chairs Charles Collins, Jr., Director,
Sales and Use Tax Division, North Carolina Department of Revenue
and Dianne Hardt, C.P.A., Administrator, Wisconsin Department of
Revenue testified before the NCSL Task Force. The supportive response
by state legislators demonstrated many of the earlier tensions have
diminished. They testified that during 2001 SSTP hopes to distribute
issue papers, expand areas for common definitions and begin defining
the requirements for some of the administrative simplification on which
there is agreement. These include exemption administration,
certification standards, and database requirements. Collins and
Hardt reported business advisory groups would play an important
role in convening the Governing States. They cautioned a full plate
of issues confronts the Project and BAT issues cannot be addressed
any time soon. Multistate Tax Commission Executive Director Dan
Bucks echoed this caution in his testimony.

Project Co-Chairs Charles Collins and Diane Hardt expressed a
desire to participate in discussions of the lease/rental/sale/use
definitions subcommittee during the Streamlined Sales Tax Project
meeting at the Minneapolis Airport Hilton, Thursday, August 23
and Friday, August 24. This will be an attempt to reach consensus
on remaining issues prior to issuance of the lease definition.
Details of the Minneapolis meeting are available at www.streamlinedsalestax.org.

The Task Force gave considerable attention to telecom issues and
adopted a resolution endorsing a uniform sourcing rule for all
transaction action taxes on telecommunications services that will
need to be considered by all states, including those without a
sales tax. They also approved distribution of an Information
Package on Implementation of the federal Mobile Telecommunications
Sourcing Act. States have until August 1, 2002 to implement this new law.

NCSL restated a desire to have the Governing States convene in late
September or early October to allow issuance of new model legislation
in time for 2002 legislative sessions. The new uniform sales tax
definition of leasing may be part of this model bill. However, the
Governing States is an organization with no bylaws. The founders
have not convened to answer the central question, "who's in charge?"
The National Governors' Association, Multistate Tax Commission,
Federation of Tax Administrations and NCSL must agree on an
organizational structure in which the executive and legislative
branches feel their prerogatives have been safeguarded. They
expect to release a joint letter in several weeks to demonstrate
unanimity on challenges facing the upcoming Governing States
meeting. Nonetheless, uncompleted organizational tasks
could make the target of late September or early October slip for
understandable reasons.

In other developments, new impetus toward adoption of the
streamlined system is expected to result from the election of
Michigan Gov. John Engler as Chairman of the National Governors'
Association (NGA). A strong proponent of the streamlined concept,
Gov. Engler has appointed Wyoming Governor Jim Geringer to
lead NGA efforts to implement the new sales tax system nationwide.
Wyoming was the first state to enact the complete Streamlined Sales
and Use Tax Agreement. Additionally, Utah Governor Michael
Leavitt has secured private funding to launch a nationwide
educational effort promoting the streamlining process.

Other issues/topics reviewed during NCSL discussions included:

* NCSL opposition to a single blended sales tax rate per
state as it means a tax increase for half the state.

* NCSL anticipates a short-term extension of the
congressional Internet Tax Freedom Act, which will have no impact
on the Streamlined Sales Tax Project. This extension might include
a trigger for initiating congressional debate relating to states
collecting tax for internet sales if SSTP is adopted in 25 states by July 1, 2003.

* NCSL has met with White House staff to promote SSTP.

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