ABA Banking Journal - August 2008 - (Page 55) Community Banking Ready to tap your branches, headquarters, or ops center? Here’s online help The following websites have helpful examples, definitions, or related aids: • www.bankrealtylp.com • www.horncapital.com • www.bsgfinancial.com/saleleaseback.asp COMMUNITY BANKING continue from page 22 property was worthless to the buyer.” Accounting considerations can also be deal breakers, according to Capello. Under the FASB standards, the rules governing sale-leasebacks are fairly stringent, he explains. There are limits on how much of a property can be sub-leased by the seller-tenant, for instance. And a saleleaseback done at a price that does not meet requirements to be considered a true sale is not treated as resulting in an operating lease. Instead, the transaction would be treated as a capital lease. “A capital lease never leaves the bank’s books,” Capello explains, “and is treated instead as a debt financing, not as a true sale-leaseback.” Fix things up first In spite of the special nature of a sale- leaseback, property nonetheless is changing hands, and many issues that arise when that happens confronts these deals. Former banker Mary Lynn Lenz says her former institution found that it had to do a great deal of catch-up before it could move to its anticipated sale-leaseback transaction. “We didn’t have any of our due-diligence materials together,” says Lenz, “because we never thought we’d be selling any of our properties.” The bank found that many upfront steps were necessary to prepare properties for sale, ranging from appraisals to environmental checks at basic or advanced levels. Older properties may have title issues that need clearing up, that can stall or kill a deal. In one of her own branches, title research revealed an easement issue that had to be resolved before the property could change hands. “Some older branches have the whole kit and caboodle of issues,” says realestate expert Colin Kane. He advises sellers to identify and fix the problems themselves, long before going to a closing. Kane says he is often surprised that banks don’t apply the same standards they would insist upon, as lenders on property, to their preparation for sale of their own facilities. The back end of a sale-leaseback must be addressed, as well. Typical issues include options for renewal and rights-offirst-refusal should the investor decide to sell the property the bank has been leasing. In addition, banks with evolving branch networks and changing approaches to property use and branch design may want to explore “site substitution” arrangements with their buyers. BJ INTERACTIVE INDEX OF ADVERTISERS Welcome to ABA Banking Journal’s Interactive Service Center. This section has been created to allow you to interact with the advertisers who appear in this issue and to gain information on the products and services offered in the following pages of the magazine. Company ABA Bank Directors Affinion Group American Bankers Association Appraisal Institute Bank Realty L P Captive Indoor Media DEI Incoporated Fannie Mae Corporation Fiserv Inc Harland Financial Solutions Inc Hasler Inc IBM Corporation Jefferson Wells LendingTools.com Metavante Corporation MoneyGram New Jersey Economic Development Authority Open Solutions Inc Panini North America Pinnacle Financial Strategies Precision Computer Systems Pulse EFT Association Shazam Sheshunoff Consulting & Technology St Paul Travelers SunGard WealthStation US Postal Service Zaio Inc 800-541-1004 info@zaio.com www.zaio.com 414-319-3400 866-345-2173 800-822-6758 800723-9777 609-777-4898 860-652-3155 937-291-2195 866-737-1235 605-362-1260 800-420-2122 800-844-8493 800-477-1772 651-310-8455 630-769-4246 651-310-8195 414-362-1782 763-549-7410 609-278-4616 860-652-3156 937-291-2197 713-868-2251 605-362-9442 713-223-1204 jessica.back@panini.com info@pinnstrat.com sales@pcsbanking.com webmaster@pulse-eft.com Tmiller@shazam.net info@smslp.com gaericks@stpaultravelers.com melissa.loverme@sungard.com 414-319-3401 info@LendingTools.com sales@metavante.com drausch@moneygram.com www.jeffersonwells.com www.LendingTools.com www.metavante.com www.moneygram.com www.CustomerCare@NJEDA.com www.opensolutions.com www.panini.com www.pinnstrat.com www.pcbanking.com www.pulse-eft.com www.shazam.net www.smslp.com www.stpaultravelers.com www.sungard.com Phone # 212-620-729 800-251-2148 800-338-0626 312-335-4100 717-843-5100 502-896-0947 513-825-5800 972-773-7543 800-872-7882 800-989-9009 203-301-3823 Fax # 212-633-1165 800-282-9838 312-335-4400 712-252-2898 502-779-8993 513-825-1947 e-mail address scocheo@sbpub.com info@affiniongroup.com info@appraisalinstitute.org Toapello@bankrealtyLP.com sales@captiveindoormedia.com Hinton@dei-corp.com adriana_c_cuevas@fanniemae.com general_info@fiserv.com web site address www.bdonline.biz www.affiniongroup.com www.aba.com www.appraisalinstitute.org www.BankRealtyLP.com www.captiveindoormedia.com www.dei-corp.com www.fiserv.com www.harlandfinancialsolutions.com www.haslerinc.com page # 47 6 35,43,50,C3 1 22 20 36 25 33 5 11 23 32 17 28-29 34 8A 12 27 41 C2 C4 31 2 39 15 21 19 203-926-4332 msmith@haslerinc.com Subscribe at www.ababj.com ABA BANKING JOURNAL/AUGUST 2008 55 http://www.bankrealtylp.com http://www.horncapital.com http://www.bsgfinancial.com/saleleaseback.asp http://www.bdonline.biz http://www.affiniongroup.com http://www.aba.com http://www.appraisalinstitute.org http://www.BankRealtyLP.com http://www.captiveindoormedia.com http://www.dei-corp.com http://www.fiserv.com http://www.harlandfinancialsolutions.com http://www.haslerinc.com http://www.jeffersonwells.com http://LendingTools.com http://www.LendingTools.com http://www.metavante.com http://www.moneygram.com http://www.CustomerCare@NJEDA.com http://www.opensolutions.com http://www.panini.com http://www.pinnstrat.com http://www.pcbanking.com http://www.pulse-eft.com http://www.shazam.net http://www.smslp.com http://www.stpaultravelers.com http://www.sungard.com http://www.zaio.com http://www.ababj.com
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