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On February 7, 2002, at 12:30 pm,  I will be delivering the second day Key Note speech entitled, "The Changed World of Aircraft Finance: New Security and Opportunity" at the Annual Conference in New Orleans on FAA Registration, Lien & Security Interests organized by Strategic Research Institute.  Please join us at this valuable and timely conference starting on February 6, 2002 at the Chateau Sonesta Hotel, in New Orleans. For details, call 1-888-666-8514 or click SRI.

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2. Aircraft War Risk Insurance Prices Go Sky High

As a lessor or a lessee, it's no secret that war risk insurance has escalated in pricing since September 11.  In fact, many policy holders received the infamous seven-day notice canceling coverage that they had to buy back at much higher prices.  For many business aircraft users and owners, the dramatic increase (5-10x) came as a shock and a financial burden.  Tip: To help manage these high costs, consider the following options:  reduce war risk coverage amounts; increase the deductibles on coverage; implement enhanced safety training and audits; and allow lessors, management companies or other operators with fleet rates to provide the insurance coverage for lessees and borrowers who, in turn, pay a portion of the lower premiums.  Question: Do you think that such increased costs will induce owners of whole business aircraft to switch to fractional shares or to charter aircraft?  Let me know your thoughts.  For details, see: http://www.ainonline.com/issues/11_01/11_01_massiveratehikespg1.html.

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3. Training Available

Do you know all that you need to know to make your numbers this year?  Could you use some fun and informative training to fill gaps in your knowledge and to help identify opportunities in the market?  Start the new year right with increased awareness of how to build your business as the market improves and how to manage your business in the current downturn.  I am offering selective training seminars tailored to your specific needs.  It's a fun, interactive and useful approach that relies, in part, on my book.  Find out  about my three basic rules of training that relate to the unique "For Dummies" brand concept. 

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4. Fast Growing Cities at Risk for Bank Failures

According to Robert Gavin's article in the Wall Street Journal, on Wednesday, January 9, 2002, page B5, the FDIC has picked 21 fast growing cities as being vulnerable to bank failures and bad debt.  Phoenix, Arizona; Portland, Oregon; and San Jose, California appear at the top of the list.  Each of these cities meets the three criteria--economic growth, loan growth and exposure to high--risk loans--that preceded many bank failures in the recession in the early 1990s.  However, Gavin reports that: "the banking industry appears in better shape to weather this recession than the last one."  Is your city on the list?  The list also includes Atlanta; Dallas; Denver; Las Vegas; San Diego; San Francisco and Tampa.  

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5. ELA Features Book

Have you seen the November/December 2001 edition of "Equipment Leasing Today (ELT), The Magazine of Equipment Leasing and Finance"?  Business Leasing For Dummies is featured on page 5.  Check it out. For more information on the ELA, see http://elaonline.com/.

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6. All States Join the Revised Article 9 Game

As you probably know by now, Revised Article 9 of the Uniform Commercial Code became law in most states on July 1, 2001.  Now, the few hold-out states have put Revised Article 9 in effect.  Connecticut put it into effect on October 1, 2001, and the states of Alabama, Florida and Mississippi put Revised Article 9 into effect on January 1, 2002.  Remember:  Revised Article 9 changes some categories of collateral and alters the method by which you perfect a security interest in certain collateral.  You should continue to make "precautionary filings" with respect to your leases.  The forms and locations for filing have also changed.  Tip: Consult experts on the new law to avoid costly mistakes or oversights.  In a recessionary economy, as a lessor or lender, you should make certain that you have correctly perfected your security interests in your collateral under Revised Article 9.

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7. Web Sites and Other Good Stuff

Here are some web sites that relate to my book and the changing sales tax laws.

See Patton Boggs LLP's press release web site regarding the book:
        http://www.pattonboggs.com/news/latest_posts/pressreleases/bl4dummies.html

See http://www.streamlinedsalestax.org for an explanation of the "Streamlined Sales Tax Project."  This   initiative may significantly change the way in which sales and use taxes apply to leasing and purchasing of personal property.  Thirty-eight state governments participate in the project "to simplify and modernize sales and use tax collection and administration." 

See the "For Dummies" web site showing Business Leasing For Dummies:  "Buy it! Use it! Share it!"
        http://catalog.dummies.com/product.asp?isbn=0764553704

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8. Goals For Book and Newsletter

One important goal for me in writing my book and this newsletter is to offer you, my clients, colleagues and friends, truly insightful help in the areas that include buying, selling, financing and leasing of property of all kinds, as well as helping you with troubled deals.  As you may know, I emphasize aircraft, power plant, facility, and technology transactions, portfolio acquisitions, syndications, secured transactions and equipment leasing, both domestically and internationally.

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David 

David G. Mayer 
Patton Boggs LLP
2001 Ross Avenue
Suite 3000
Dallas, Texas 75201
(214) 758-1545 (phone)
(214) 758-1550 (fax)
E-Mail: dmayer@pattonboggs.com

© David G. Mayer 2002

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