December 20, 2000

Headlines--

  No Merger--UAEL Prez Says
    Preferred Capital---On the Block????
      Bay View Announces After Tax Loss of $17 million ( read the Press Release )
        BOFA AXES BANKERS AS LOAN RECORD GETS WORSE--New York Post
          ( Blames Unicapital Loans and other leasing companies )
            Auction sells foreclosed homes in Oregon
              Comdisco Continues Web Growth
                Prime Street/eLease Acquistion--Internet Growth
                  MicroFinancial Raises $50 MM Securitization

( List is not up-dated, as we are trying to put into chronological order. The list is getting too big. editor ).

To Think About This Weekend ( see end of today's report )

UAEL Prez Confirms, " No Merger!!!"

As the year 2000 President of the UAEL please allow me to assure all concerned that there has been no mention of a merger with the EAEL during my term as president. What we do have under consideration at this time is another joint conference with the EAEL. It is possible that news circulating regarding these discussions caused some confusion. This is being discussed at this time but no definitive plans have been made as yet. I haven't even heard the rumor of a merger, at least not this time. For the sake of history a merger between the two associations was proposed during Oren Hall's term as president of the UAEL and Peter Ferrara's term as president of the EAEL. Obviously no agreement to merge was ever reached. No one from the executive committee of either organization has spoken about this, unless it was done clandestinely, during the last past three administrations at the UAEL.

Bob Rodi,CLP
Soon to be Immediate Past President of the UAEL

Hal Holowitz Says, "Old Rumor".

Re the UAEL/EAEL rumor which I imagine are no more true, or even warranted now than they were in 1992 when I was around, unless things have changed significantly since then, the question remains, what could possibly be the benefit of a merger that would outweigh the benefit of a perfectly good rivalry?

Hal T. Horowitz
Account Executive
Search West
340 North Westlake Blvd., Suite 200
Westlake Village, CA 91336
Phone: 805-496-6811 ext. 231
Fax: 805-496-9431
Pager: 818-494-6875
hal.horowitz@searchwest.com
www.searchwest.com

"It is my mission to collaborate with my clients in order to further their success by identifying professionals of uncommon ability to whom my clients might not otherwise have access and who will make a valuable contribution to my clients' goals."

Why Not????

I'm a UAEL and ELA member. I'd like to hear the reasons why UAEL and EAEL should not merge.

Thanks.
kclune@clune.net

Preferred Capital, Tahoe City, California

( also known as Preferred Lease )
http://www.preferredusa.com/1-800-995-6666/About/history.cfm

In June they closed all their branch offices ( Crystal Bay, Nevada, San Diego, California, Dover,New Hampshire), it was reported. They were heavy in the mail marketing and telephone solicitation with the "Pre-approved" approach, selling mini-paper to GE/Colonial Pacific, Manifest, Commerce Security, up to over $10 million a month in their "hay day." Negative Cash Flow that has hit many others in the industry was reportedly the reason for the downsizing or consolidation, depending on your viewpoint.

David Murray and Louis Schneider were the principals.They considered themselves marketers, not brokers or lessors, and even treated their tax returns as they were a marketing company. ( David Murray is no longer with the company, according to the their receptionist---he was listed as the President in the UAEL directory ). They would promote their young account reps into various management positions. There were no"leasing veterans".

Preferred DID generate a fair amount of loyalty to their employees due to some of the percs: free season pass to skiing, various company-paid outings (i.e. white water rafting) and bonuses (gave away a snowmobile once...) Their former employees are not talking much as everyone was very happy.

This was the premier "application only" operation. It was not basically "internet," but by telephone and mail where there was no relationship selling, just low quote, get the customer approved, change the rate or terms, a "boiler room" operation similar to one as by Republic Leasing of Anaheim, but not as "intense," but more "turn the application around" and move on to the next one.

The approach was the same that was used by some of the salespeople at the Republic Group and Corporate Capital before they were acquired by First Sierra. Corporate Capital even issued a "credit card" to the end user, but did not check their credit for approval until an actual application was received.

The building in Tahoe City was full of little cubicles, each with a recent college graduate, none of whom knew anything about leasing, or sales for that matter. The sales program was very clever. The company bought mailing lists from D&B and other sources and sent solicitations to the prospects. The solicitation included what appeared to be a credit card and the prospect was informed that he/she had been "pre-approved" for up to $75,000. All that it would take to activate the credit line was a call to an 800 number. The system was taken almost directly from the type of letter you get from credit card companies. Naturally, when the prospect called, he had to provide a "little" additional information (again, a la credit card solicitations). Of course, there was never a "pre-approval". The prospect was "pre-qualified".

We received a Plastic Card almost every week at the various companies here at American Leasing. I am sure everyone in California has at one time or other received one of Preferred's mailers. All our advisors are aware of this company, and most said they have received the card.

The company recruited their salespeople directly from colleges, using as a lure the Tahoe ski and fun lifestyle. They did little or no selling, but followed closely the company "line". They were simply order-takers, responding to incoming calls rather than making outgoing sales calls.

About a year ago the company moved into larger quarters on or close to the lake front. In June, the Tahoe City Newspaper noted they had closed their branch offices. The web site makes no mention of this and calls to the current president have gone unanswered.

We have verified that the company is for sale, is in the process of being purchased or maybe purchased. We are not at liberty to give the details as we are unable to confirm some of them, including bank problems and up-side down cash flow---these are rumors and unsubstantiated at this time---but from several sources as we had with Metrolease, Unicapital, and others in the early beginning. Our "readers" give us the information we have here.

Annoymous ( famous poet or broker? )

I am a little curious about the hostility toward some contributors who want to remain anonymous. If the comments made could have a negative impact on someone's employment or ability to make a living it is understandable. Some people feel compelled to tell the truth but not at risk to themselves. Information that is important to be aired would not come to light without anonymity.

Anonymous

( We would not have gotten the "inside" information on Sierra Cities, Unicapital, United Capital, El Camino Leasing, and many other stories if we did not honor and "appreciation" Anonymous. editor )

BOFA AXES BANKERS AS LOAN RECORD GETS WORSE
New York Post
By ROBERT CLOW

Bank of America will respond to its mounting credit problems by laying off 100 commercial and investment bankers, sources said yesterday. Leasing company UniCapital Corp. is the most recent BofA company to go belly-up and the tally of bad loans is rising for Hugh McColl's banking giant. UniCapital filed for Chapter 11 last Tuesday, and market sources believe BofA has at least $400 million exposure to the company. The No. 2 bank recently acknowledged a $500 million exposure to troubled consumer-products maker Sunbeam and bad loans were partially blamed when it warned of falling earnings earlier this month. A spokeswoman declined to comment on layoffs but a source close to the bank pointed out that the cuts represent only 3 percent of BofA's bankers. The source said the bank will continue to hire heavy-hitting bankers where possible. BofA predecessor Nationsbank originally raised a $1.2 billion, three-year bank loan for UniCapital in 1998, when the Florida-based leasing company planned to snap up a bunch of similar concerns. UniCapital helped finance the purchase of everything from airplanes and trains to computers and other office equipment. The market soured on that business plan after the debt market blew up in the fall of 1998. BofA and Morgan Stanley Dean Witter, which managed UniCapital's initial public offering, were reported to have been left holding most of the 1998 bank loan. Morgan Stanley has acknowledged bad debts in its high-yield portfolio, and it was one of the lead managers of the Sunbeam loan. But Bank of America may be more exposed because it continued to roll UniCapital's financing right up until the end - even as the company was desperately selling its valuable aircraft leases to Lehman Brothers. Through Nov. 30, BofA kept a $300 million revolving credit - a type of expensive bank loan that can be drawn down in an emergency. It also kept the company's commercial paper facility going. As is normal with bank loans, some of UniCapital's loans are collateralized with the assets the company is financing - the trains, planes and computers. For example, Morgan Stanley has a $200 million secured-credit facility that is explicitly guaranteed by small- and middle-market leasing equipment. (Planes and trains are the big-ticket items.) But a banker in the industry explained that is not a watertight protection because leasing equipment, like computers and other office equipment, quickly loses its value and can be difficult to resell. And Securities and Exchange Commission filings suggest that Bank of America's facilities may not even be backed with these flimsy guarantees.

Bay View Reduces Exposure to Franchise Assets
$17 Million After Tax Loss

SAN MATEO, Calif.,/PRNewswire/ -- The following was issued by Bay View Capital Corporation:

Bay View Capital Corporation (NYSE: BVC) announced today that it has negotiated purchase and sales contracts with multiple parties for a total of $110 million of franchise loans, of which $90 million in sales have already closed. These sales will not have a significant impact on fourth quarter earnings as the transactions were executed at prices at, or near, par value.

Mark E. Lefanowicz, the Company's Chief Financial Officer, commented, "We are encouraged by these recent franchise loan sales and remain optimistic regarding our ability to sell our franchise loans. Our progress this quarter demonstrates that we can execute franchise whole loan sales at, or near, par value. We are actively pursuing additional franchise loan sales to further reduce our concentration risk, although the terms of any future sales will vary depending on, among other things, the interest rate and maturity of the specific loans within each loan pool. The sales terms could be negatively impacted if we accelerate this process through a bulk sale of loans."

As a result, Bay View expects to have reduced its franchise loan portfolio to approximately $820 million by December 31, 2000. In addition, the Company sold its $258 million in franchise-related asset-backed securities generated earlier in the year from an on-balance sheet securitization. Although the sale of these low-yielding securities resulted in an after-tax loss of approximately $17 million, the Company will benefit in future periods by the elimination of a negative spread associated with the securities.

Bay View will also continue its ongoing efforts to reduce its exposure to franchise loans by reevaluating its franchise-related allowance for loan losses and other franchise-related asset valuations during the fourth quarter of 2000.

Bay View Capital Corporation is a diversified financial services holding company with over $6 billion in assets. Headquartered in San Mateo, California, it is the parent company of Bay View Bank, N.A. and its subsidiaries, Bay View Acceptance Corporation, Bay View Commercial Finance Group, and Bay View Franchise Mortgage Acceptance Company.

Forward-Looking Statements

This press release contains forward-looking statements that describe the Company's future plans, strategies and expectations. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond the Company's control and which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect forward-looking statements include, among other things:

-- the demand for the Company's products;

-- actions taken by the Company's competitors;

-- tax rate changes, new tax laws and revised tax law interpretations;

-- adverse changes occurring in the securities markets;

-- inflation and changes in prevailing interest rates that reduce margins or the fair value of the financial instruments held;

-- economic or business conditions, either nationally or in the Company's market areas, that are worse than expected;

-- legislative or regulatory changes that adversely affect the Company's business;

-- the inability to sell or securitize assets;

-- the timing, impact and other uncertainties of asset sales or acquisitions and the Company's success or failure in the integration of their operations;

-- the ability to enter new geographic and product markets successfully and capitalize on growth opportunities;

-- technological changes that are more difficult or expensive than expected;

-- increases in delinquencies and defaults by borrowers and other loan delinquencies;

-- increases in the provision for losses on loans and leases;

-- the inability to sustain or improve the performance of subsidiaries;

-- the inability to achieve the financial goals in the Company's strategic plans, including any financial goals related to both contemplated and consummated asset sales or acquisitions;

-- the outcome of lawsuits or regulatory disputes;

-- credit and other risks of lending, leasing and investment activities;

and

-- the inability to use net operating loss carry forwards currently held by the Company.

As a result of the above, the Company cannot assure that future results of operations or financial condition or any other matters will be consistent with those presented in any forward-looking statements. Accordingly, the Company cautions you not to rely on these forward-looking statements. The Company does not undertake, and specifically disclaims any obligation to update these forward-looking statements, which speak only as of the date made.

SOURCE Bay View Capital Corporation

CO: Bay View Capital Corporation

( Sorry for the length, but wanted to report it all, including the disclaimer. You don't have to read it all, but it is there as it legally should be. editor )

Auction sells foreclosed homes in Oregon

By Gordon Oliver of The Oregonian staff
An online auction of foreclosed homes throughout Oregon made sales of 20 of the 38 homes listed on the auction site, with net sales of more than $2 million. AMSauctions.com, an Alabama-based company that launched its online auctions of bank-owned properties in June, reported that the homes sold for $30,000 to $451,500. The high-priced home, which attracted a dozen bidders, was on Southwest Cardinell Drive in Portland's West Hills. Other homes were in the Portland, Salem and Eugene areas, and in Lebanon, Lincoln City, Coos Bay, Roseburg, Klamath Falls and Ontario. The company estimates that buyers were equally split between investors and families who bought the homes to live in.
The company said it has now sold more than 300 homes nationally at its online auctions. In Oregon, the company has created a subsidiary of Kingdom Properties of Portland for legal purposes.
The Oregon auction was Nov. 8-19. Prospective bidders could view the homes with the aid of a real estate broker, and they submitted secured bids over the Internet.

PrimeStreet

eLease; PrimeStreet Expands Leadership Position in Online Credit
by Offering Point-of-Sale Leasing Solution

BOSTON--(BUSINESS WIRE)--Dec. 20, 2000--

Lead Investor, idealab! to Invest in PrimeStreet

PrimeStreet Corporation, the leading enabler of real-time credit solutions for companies servicing the small business market, today announced an agreement in principle to acquire Palo Alto based eLease Financial Services, Inc., developer of the premier web-based transaction processing system for l easing companies, banks, and equipment manufacturers and dealers that offer leasing to their customers.

This acquisition deepens PrimeStreet's comprehensive range of credit solutions and advanced real-time online and offline leasing solutions to equipment vendors and point-of-sale customers, and solidifies PrimeStreet's leading position in the credit infrastructure industry.

"Combining PrimeStreet and eLease's technology and market strengths creates a solid cornerstone for our vision of placing real-time lending and leasing automation solutions at the immediate point of need", said Kevin Talbot, chairman and CEO of PrimeStreet Corporation. "eLease has developed a lead ing-edge automation platform that will reduce transaction costs and increase revenues for clients."

The eLease Platform(TM) consists of 1) AccessPoint(TM), which enables leasing functionality on any Web site, 2) SalesPoint(TM), which provides lease sales force automation solutions, and 3) InOffice(TM), which facilitates configurable workflow solutions for back office lease processing. The eLease Platform(TM) manages sales, application, underwriting, documentation, billing and accounting functions and is delivered in a hosted services model so that all hardware, software, data management, and network support and administration are included in the solution.

"By joining forces with PrimeStreet we can collectively deliver a more powerful and fully-integrated solution to the market", said Ivan Wolkind, CEO of eLease. "The combined strength of our two companies will allow us to address comprehensively the needs of the lessor and vendor finance industry, which is estimated by the U.S. Commerce Department to grow to $240 billion by the end of next year."

Acquisition details:

eLease will remain based in Palo Alto, California, and will be combined with PrimeStreet's West coast sales office. The new entity will use the PrimeStreet corporate name.

Under the terms of this agreement, eLease's lead investor, idealab!, will make a separate financial investment in PrimeStreet.

About eLease

eLease provides lease process automation solutions for every constituent in the leasing process including financial institutions, capital equipment vendors, and businesses that need to either offer or acquire leases. Utilizing eLease Platform(TM), eLease develops and delivers Web-based leasing sol utions that add leasing functionality to any Web site, lease sales force automation solutions, configurable workflow solutions for back office lease processing and a business-to-business marketplace for acquiring capital equipment leases and lease lines. eLease is based in Palo Alto, CA. Additiona l information can be found at the company's Web site www.elease.com.

About PrimeStreet Corporation

PrimeStreet(TM) is the leading enabler of real-time credit solutions for companies serving the small business market, including financial institutions, equipment vendors, and marketplaces. PrimeStreet's eBusiness Finance Platform (eFP) is a transaction processing engine that provides the core func tionality required in all credit transaction process flows and permits data exchange among PrimeStreet, loan origination, and channel partner systems in both online and offline environments. The PrimeStreet eBusiness Finance Network (eFN) is a tightly integrated network of lending institutions cov ering multiple credit tiers, enabling the solution to support a wide range of applicant requests, including lines of credit, term loans, business credit cards, leases, factoring, and merchant credit. PrimeStreet's real-time credit processing platform is delivered to clients through a hosted servic es model and is currently used by over 60 financial institutions and more than 33 online finance centers.

PrimeStreet operates in both the United States and Canada. For more information, please visit www.primestreet.com.

PrimeStreet is a trademark of PrimeStreet Corporation. All other company, product and branded names are trademarks of their respective owners.

CONTACT:

Blanc & Otus Public Relations
On behalf of PrimeStreet
Lyn Francoeur, 617-262-6454 x210
lfrancoeur@blancandotus.com

or

PrimeStreet Corporation
Alan Rodgers, 617-314-6105
arodgers@primestreet.com

MicroFinancial Inc. Announces The Closing Of A $50MM On Balance Sheet Securitization

WALTHAM, Mass.--(BUSINESS WIRE)--Dec. 20, 2000--MicroFinancial, Incorporated ("MFI") closed a $50MM on balance sheet securitization on December 18, 2000. "This is now our 8th securitization, and the second one in 2000.

It is insured by Ambac Assurance Corporation and was rated by S&P AAA and Moody's Aaa. Rothschild Inc. was the Placement Agent. The results of the reviews and audits of our company by the auditors of Freed, Maxick, Lender Advisory Se rvices, rating agencies, insurance company and investors, together with our more than 14 year track record of financial success made closing of this facility as effective and efficient as all the prior ones" says Kerry Lincoln, VP Accounting and Finance

"While for many specialized financial intermediaries obtaining sufficient refinancing has become a major issue during the second half of 2000, our track record has gained us the trust and support of leading refinancing sources and has secured us with stable, reliable, ample and efficient refinanci ng alternatives. Our strategy has always been to have diversified refinancing types and sources available and after having closed on a $192MM syndicated revolving bank facility in August 2000 this is another indication of the success of our strategy" says Peter Bleyleben, President and CEO.

"Having direct borrowing arrangements with leading banks in our industry together with our track record of successful on balance sheet securitizations has become a significant strategic advantage for MFI and its subsidiary Leasecomm Corporation. Dealers presenting us with lease applications know t hat they are dealing with a leasing company that over the past 14 years has proven its ability to secure sufficient and economic refinancing in most any economic environment" concludes Richard F. Latour, Executive Vice President, COO and CFO.

MicroFinancial Inc., (NYSE: MFI), headquartered in Waltham, MA, and with additional locations in Woburn, MA, and Newark, CA, is a financial intermediary specializing in leasing and financing for products in the $500 to $10,000 range. The company has been in operation since 1986 and has been profit able since the second quarter of 1987. Please visit our Web-Site at http://www.microfinancial.com

This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect the management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should also carefully review the risk factors described in documents the Company files from time to time with the Securities and Exchange Commission.

CONTACT:

MicroFinancial, Incorporated
Richard F. Latour
EVP, COO and CFO
781.890.0177
richard.latour@leasecomm.com

KEYWORD: MASSACHUSETTS CALIFORNIA

Participate.com Chooses Comdisco for Managed Web Hosting Services

ROSEMONT, Ill.--(BUSINESS WIRE)--Dec. 20, 2000--

High-Availability, Flexibility and End-to-End
Management Capabilities Key Factors In Online
Community Management Firm's Selection

Comdisco (NYSE: CDO) today announced that it will provide Web hosting services for Participate.com, the Chicago-based manager of online communities for corporations. Participate.com's selection is largely due to Comdisco's high-availability services and expertise. As part of the service agreement, Comdisco will host Participate.com's primary online community management site and provide ongoing monitoring and support. In addition, Comdisco will provide continuity and availability services to ensure uptime for Participate.com's site.

"A secure and highly-available Web environment is absolutely critical for Participate.com and our customers," said Alan Warms, president and chief executive officer of Participate.com. "With Comdisco, we have a fully managed hosting solution backed by the company's long history of expertise in continuity and availability services."

In choosing a Web hosting environment, Participate.com sought a solution that provided monitoring services that extended to the application layer, allowing them to monitor failures from all levels. Comdisco's fully managed offering enabled Particpate.com to meet that criterion.

"Participate.com is a leader in creating online communities that enable businesses to strengthen customer relationships and garner real customer insight," said Dave Sloboda, senior vice president of marketing and business development at Comdisco. "Comdisco will provide a secure Web infrastructure that will serve as the foundation for Participate.com's online communities."

Participate.com's online community management services enable corporations to:

-- Increase customer loyalty and retention

-- Lower operating and customer acquisition costs

-- Measure and leverage the value of their online communities

Comdisco Web services offer high availability hosting solutions to both dot.coms and traditional brick-and-mortar companies with significant e-commerce initiatives. The services include:

-- Continuous Web-Availability Services, which use a combination of load balancing between geographically distributed primary and alternate sites, high availability techniques for database synchronization and high-speed networking.

-- ATOP(SM) Services (At-Time-of-Peak), a turnkey solution that immediately delivers additional capacity to meet planned or dynamic peaks in traffic to a customer's site.

-- Rapid Recovery and Web Disaster Recovery services, which enable customers to restore their Web presence within a pre-defined time frame, using redundant technology, standby operations and alternate sites.

For more information on Comdisco Web Services, call 800.272.9792.

About Participate.com

Participate.com is a provider of outsourced online community management for corporations. Along with its community management services, Participate.com delivers its clients strategic plans for building online communities and selecting, integrating, and deploying the technology for these online com munities. Through its Community Management Center, Participate.com offers Fortune 1000 companies the expertise and focus needed to manage the complex issues involved with harnessing the power of online community. Participate.com's approach delivers the experience and resources that its clients --

which include Ace Hardware Corporation, Cisco Systems, Microsoft, and SAP AG

-- rely upon to create and grow vibrant online communities.

About Comdisco

Comdisco (www.comdisco.com) provides global technology services to help its customers maximize technology functionality, predictability and availability, while freeing them from the complexity of managing their technology. The Rosemont, (IL) company offers a complete suite of information technology services including business continuity, Web-Availability (SM), network, and IT Control and Predictability Solutions (SM). Comdisco also offers equipment solutions to key vertical industries, including electronics, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Ventures division, Comdisco is providing equipment leasing and other financing and services to venture capital backed start-up companies. The company's revenue for the 12 months ended September 30, 2000 was $3.9 billion.

CONTACT:

Comdisco
Rich Maganini, 847/518-5438

ramagani@comdisco.com

URL: www.comdisco.com
or
Participate.com
Bill Perry, 312/279-9521
bperry@participate.com

To Think About this Weekend:

Remember "everything that was old becomes new again"

"History repeats itself"

"Credit is credit"

All that said I'm sure you'll see full disclosure to be back in vogue very soon. If you have not seen it already. And while credit scoring works for the consumer going into Best Buy for a big screen TV, I just do not see it viable for commercial leasing/lending, especially for larger deals.

Recent observation UAEL 1999 conference in Scottsdale everyone was playing golf & by the pool with funders everywhere. UAEL 2000 conference in Monterey was the "high tide" for leasing. 2000 conference in Orlando gave the impression that leasing was somehow Mickey Mouse industry and ended with a tropical storm, which was a sign of things to come. Now the 2001 conference is in San Antonio, home of the Alamo. Does that indicate that this could be the last stand for some brokers and funders? I think the 2002 conference should be at Ft. Riley and titled "Back to Basics"....Basic training that is! The fundamentals of credit do not change, just the people asking for and giving out the money.

( name withheld )

[Back to Archives]

www.leasingnews.org
Leasing News, Inc. (Pending)
346 Mathew Street,
Santa Clara,
California 95050
E-Fax: (781)459-4789
kitmenkin@leasingnews.org
Policy Statement