May 13, 2000

KEN GREENE'S LEASE AND LAW LETTER

May 2000
Volume 9

Greetings, Leasing Colleagues! While the Dow and Nasdaq ride the roller coaster, the leasing industry plugs away strong and steady. Here's the latest scoop on newsworthy events.

CURRENT DEVELOPMENTS IN LAW AND LEGISLATION STATUS OF COMMERCIAL CODE ARTICLE 9: Watch out folks. The UCC world has undergone major changes. These changes include many important new filing rules for financing statements, including the content thereof, the elimination of the need for signatures under certain circumstances, a change in the place and method for filing, and more. This is indispensable knowledge. Even though the new laws will not take effect for a year or so, you will want to file correctly prior to enactment so that you do not have to file again. I am thinking about organizing a seminar on the new UCC. Anyone interested, please let me know.

STATUS OF BANKRUPTCY CODE REFORM: It is now more than three months since the Senate passed S. 625 yet the Senate is apparently no closer to a formal conference with the House over the differences with H.R. 833. The Senate has been blocked from naming conferees, pending an agreement on the bifurcation of the bill's minimum wage and tax provisions. Senate leaders had hoped to send the $1 per hour minimumm wage increase and business tax breaks to a separate conference with the House, which has passed its own version. But a few Democrat Senators have consistently objected to this procedure, thus preventing the bill from moving ahead by the "unanimous consent" that governs so much of Senate practice. As of April 14, 2000, the fate of the bankruptcy bill remained unclear. The Senate is in recess until April 25 and the House is out until May 2. Staff members for the principals continue to swap proposals and proposed language, with House Judiciary Committee staff reportedly sending a response back to the Senate's informal offer. No conferees have been named, with the process still stymied by an inability to achieve unanimous consent in the Senate over the bifurcation of the bill from the minimum wage and business tax breaks, included in S. 625.
In response, Republican leaders in both chambers have agreed to negotiate a compromise bankruptcy package outside the normal conference process. Staffers of Democrat members have been involved in this process as well. The Senate representatives in this informal process have generally found a bipartisan consensus. The ranking Democrat on the Courts subcommittee, Sen. Robert Torricelli is a strong supporter of S. 625. The House representatives have not had the same consensus. The ranking Democrat on the subcommittee, Rep. Jarrold Nadler opposes the bill and even full committee chairman Henry Hyde has concerns about the impact of the means test and other aspects of H.R. 833. Many non-consumer items are also on the table for negotiation. We will keep you posted in this seemingly neverending battle! For further information, feel free to give me a call.

BUSINESS NEWS

The indefatigable Bruce Kropschot announced that he has re-established Kropschot Financial Services, which he founded in 1986 as a merger and acquisition advisory firm for the equipment leasing and financing industry. Mr. Kropschot left the firm in late 1997 to become vice chairman of mergers and acquisitions at UniCapital. Effective April 1, 2000, Kropschot retired from UniCapital, where he was also president of UniCapital Business Credit Group.

Good luck Bruce!

( note: Ken was the Conference Chairman of the S.F. UAEL Conference)

PERSONNEL, INDUSTRY AND ASSOCIATION NEWS UAEL SPRING CONFERENCE:

Although I am perhaps not a truly objective source on this subject, it would appear that the SEC conference attendees were more than satisfied with this year's event. All of our guest speakers, including Dr. James Canton, Prof. Haim Mendelsohn, Rich Masterson, and Mark Oman, were terrific. In fact, all of the programs were well attended and very stimulating. Oh, and the music was top notch too. . . Saturday's party was, in my opinion, the best Saturday night soiree ever. BIG Kudos to the UAEL staff, whose hard work truly paid off. We should all be thankful for the devotion and effort demonstrated by the office. They surely know how to get things done. Call them and let them know you appreciate their efforts! Additionally, I welcome any feedback which will further improve future conferences. (Of course, if you simply want to tell me how great the conference was, that's fine too).
ELA LEGAL FORUM: I missed the forum, but all reports confirm that the program once again was thorough, timely, and illuminating. Way to go ELA!

That's it for now.
Any questions, please feel free to send a reply e-mail, or call us at (415) 925 0700.
And, again, my thanks to my good friend Kit Menkin for further distributing this newsletter.

Ken Greene
Kenneth C. Greene & Associates

The foregoing is meant to provide general information to the leasing industry. It is not meant as an endorsement or legal opinion and readers should consult counsel and/or verify the accuracy of any contents upon which they intend to rely. Any recipients who wish to be removed from this newsletter mailing list should e-mail kgreene100@aol.com by reply e-mail, and will be promptly removed.
Please also feel free to send me news and/or modifications to items discussed herein.
Thank you.