National Marine Bankers Association Update

A MESSAGE FROM THE PRESIDENT

It has been my great pleasure to speak with many of you over the last couple of months about NMBA's goals and initiatives and I look forward to catching up with the rest of you in the near future. Your openness and innovative ideas continue to be invaluable. One of the leaders in our industry recommended that we "shake up the conference" this year. Well, your voice was heard loud and clear and that is exactly what we intend to do. The NMBA Board of Directors met in March, 2010 in Phoenix, AZ to discuss venue and agenda items for the 2010 Conference. Bill Otto, Conference Chair, and Jackie Forese, Co-Chair, have selected a beautiful property in San Diego, CA called Rancho Bernardo Inn.

You will not want to miss some of the interesting topics we have on tap; some we have never discussed during our conferences in the past. We are changing the agenda format to inlcude concurrent breakout sessions that target banks, service companies and interests of the associate membership. In addition, times and activities are being adjusted to accommodate greater focus on industry concerns and networking opportunities. As always, we are looking forward to an outstanding golf tournament so be sure to keep those skills fine tuned.

Several of your Board members are attending the American Boating Congress in DC May 5th and 6th. This important event is sponsored by the NMMA and will give updated information on legislative actions affecting the boating industry. Inventory financing and the SBA are some of the featured topics. The Legislative committee, chaired by Don Parkhurst, will be keeping a watchful eye on a new US Senate Financial Regulatory reform bill currently being proposed. It has the potential of adversely affecting the way we currently lend on marine loans with regard to new contract disclosures, term restrictions and potential caps on earnings. If passed, vessel sales will surely be impacted as well as the availability of credit.

Your marketing committee, chaired by Peggy Bodenreider, developed a new collateral brochure this spring entitled "A Fresh Look at Marine Lending." This important paper will be used to reach out to community lenders to share the benefits of marine lending and the advantages of joining our association. We will also be using the piece to distribute at our booth at the Consumer Bankers Association conference in June.

Thanks to all of you who have submitted your 2009 annual survey statistics! For those of you who still have questions about the survey, please feel free to call me at 410-268-1545. It would be excellent to have 100% participation as it is a valuable tool for all our members and industry partners.

Please contact me with any recommendations/comments on how the NMBA can better serve your business and the boating community. Please advise if you have any requests for topics of discussion in our break-out sessions at the conference. We need your input and help to serve on our committees.

Have a successful, profitable and safe spring!

Karen Trostle
President

NMBA ANNUAL CONFERENCE RETURNS TO SAN DIEGO

The Rancho Bernardo Inn (www.ranchobernardoinn.com) will be the site of the 2010 NMBA’s Annual Members Conference to be held November 7-9.

Located 25 minutes north of San Diego International Airport, the resort features a spa, fine dining, heated pools, tennis courts and bicycle rental.

Rancho Bernardo Inn’s Resort Golf Course has hosted both PGA and LPGA events and features strategically placed August-sand bunkers and a meandering creek wandering throughout the course.

The conference committee, co-chaired by Jackie Forese and Bill Otto, is in the early stages of planning the agenda and encourage your suggestions.

Please contact them at forese2@msn.com or billotto3@gmail.com.

LENDERS WILL PARTICIPATE IN BOATING CONGRESS

NMBA will be represented at the 2010 American Boating Congress (ABC), May 5 - 6 by President Karen Trostle, and past Presidents Jim Coburn and Don Parkhurst. ABC is the marine industry's legislative conference, bringing industry leaders to Washington, DC to help formulate public policy and present a unified front on boating issues. The conference offers opportunity to learn and discuss state and federal legislation, get first-hand insight from policymakers and network with industry people.

“Participation at the Congress helps us in several ways,” suggests Trostle. “We stay up-to-date on lending programs that are available to members, remind lawmakers that their support of such programs benefit us and our customers, and show the boat manufacturing and retailing sectors that we are continuing to work on opening up the credit markets. We’ll provide additional need-to-know information that we learn to members after returning from our visits in the Capitol.”

Topics to be addressed during the Congress include:

• Dealer Floor Plan Lending and the Small Business Administration (SBA)
• Business lending conditions
• National oceans policy & fisheries closures
• Ethanol & energy policy
• Upcoming mid-term elections & the changing Washington political dynamic.

Participants schedule meetings with their representatives and senior staff. It's an opportunity to build or cement relationships that lead to positive attitudes toward boating and the industry within Congress.

ABC 2010 will be hosted at the Liaison Capitol Hill hotel. For more information visit www.nmma.org/abc.

"FRESH LOOK" AT MARINE LENDING ISSUED BY NMBA

A new review of marine lending makes a realistic assessment of the impact of the 2007 – 2009 recession on the boating and finance markets but points out that a significant percentage of Americans continue to embrace the lifestyle and a toughened industry remains in place to serve them. Titled “A Fresh Look at Marine Lending,” the 16-page document provides a high-line perspective focused on the need to replace funding by lenders who remain in the market as well as others looking for opportunity to attract upscale borrowers and support surviving marine businesses.

"We are starting to see a slight opening in the availability of consumer credit and want to position marine lending as a primary place for funds to flow," says NMBA President Karen Trostle of Sterling Acceptance Corp. of Annapolis, MD. "This new review is designed for lenders to take upstairs to boardrooms to help get boating consumer and inventory loans in the strategic plan. It can also be! delivered to community and other bankers to remind them of the opportunity to attract high-quality borrowers and assist local small businesses."

Information presented highlights the historical NMBA data that boat lending offers portfolio performance superior to most consumer loans and a solid customer base to build upon. Profiles of boating participants and borrowers illustrate their higher credit capability, charts compare marine portfolios favorably in comparison to other loans, and copy and illustrations provide hand-holds showing marine lending partners are eager and willing to assist in the underwriting and service requirements. A wide view of the industry is provided noting loans are needed to finance small craft on inland lakes to bluewater cruisers taking on oceans – and the companies that build and sell them.

Guided by the NMBA Marketing Committee headed by Peggy Bodenreider of Maritime Capital Group of Ft. Lauderdale, FL, the piece was wri! tten by marine F&I consultant and columnist Greg Proteau. "Our first distributin will be during the American Boating Congress in Washington to underscore the lending needs of the industry to lawmakers and finance agency personnel," Bodenreider points. "From there, it will be made available by us to lenders attending the Consumer Banker Association's Retail Credit Convention in Ft. Lauderdale." It is available to all in the industry as a download or link from the homepage of www.marinebankers.org.

The new NMBA resource joins two others produced in 2009 for industry principals to sharpen their “show me the money” skills: an “Executive Summary” of the market is available focusing on a discussion specific to commercial floor plan lending; and a webinar program titled “Finding Funding, Building Lending Relationships” is directed primarily to marine manufacturers and retailers. Both are also posted on the NMBA website.

SAVE THE DATE FOR THE LENDING WORKSHOP

The NMBA’s Annual Marine Lending Workshop will be held December 5-7 at the Embassy Suites in Fort Lauderdale. This comprehensive two-day program provides a complete course on the various elements of pleasure boat financing. Sessions include:

• Industry Overview
• Market Planning and Development: Elements of a Successful Marketing Strategy
• Marine Insurance: Protecting the Collateral Investment
• Collateral Evaluation: Assessing Accurate and Reliable Values
• Credit Analysis: Perspective and Technique
• Registration and Lien Perfection: State and Federal Regulations
• Collection and Repossession: Successful Management of Problem Accounts
• Collateral Remarketing and Liquidation: How to Minimize Losses Through Effective Marketing

Instructors are expert marine lenders, collectors, asset managers, attorneys, insurance specialists and others collectively offering decades of significant experience.

NMBA TO EXHIBIT AT CBA

The NMBA will be exhibiting at the annual Consumers Bankers Association (CBA) conference in Hollywood FL in early June. The board recognizes the need to bring banks to the marine lending market and hopes to identify potential candidates at this event, which will be attended by 700 bankers. The exhibit booth will feature streaming video on the boating lifestyle, a newly-developed pamphlet promoting the historical performance of marine portfolios, the supporting businesses to the marine lenders, the benefits of NMBA membership, and the need for funding. This is the first of several initiatives the NMBA board is focusing on in 2010 to increase the availability of retail financing in the marine industry.

MEETINGS CONTINUE ON UNIFORM BOAT TITLE

A Drafting Committee of the National Conference of Commissioners on Uniform State Laws (NCCUSL) is continuing work on creating a standardized Certificate of Title Act for Boats (dubbed UBOTA) having met a second time on the effort in March. The goal of the law commissioners is to produce a uniform title act for boats along the lines of the one they created for motor vehicles in 2005 (referred to as UCOTA).

A growing number of observers representing a variety of organizations with diverse expertise, including NMBA and a number of its Associate members, are also participating. In March, NMBA Past President Jim Coburn and Counsel Jim Stewart spent a weekend providing the marine lending perspective. Others involved were the U.S. Coast Guard, the National Association of State Boating Law Administrators (NASBLA), the International Association of Marine Investigators (IAMI), the American Vessel Documentation Association (AVDA), and Maritime Law Association of the Unit! ed States (MLAUS). In addition, a number of lawyers aligned with the marine lending community are also providing guidance including David Williams, Chair of the ABA Subcommittee on Maritime Finance.

UBOTA is being pursued now by NCCUSL since its work is completed for motor vehicle titling, though that act has yet to be passed by any state. Stewart feels there may be a greater chance of success with boat titling because there is a broader base of stakeholders, some of whom are familiar with the issues related to passage of the vehicle act. “There’s no question about the benefits implementation of uniform boat titling would bring for consumers, the states and industry,” Stewart says. “It would better secure the entire process of buying and transferring ownership of new and used boats and motors, allow lenders to operate in a number of different states, and provide access to information to help law enforcement officers and insurance companies.” He adds that a uniform system for boat titling might also lead to the implementation of the elusive federal Vessel Identification System (VIS) which, in turn, would bring a higher level of benefits to consumers and all! of the parties involved with UBOTA.

Although the laws of all 50 states now provide for numbering boats principally used in that state in accordance with 46 USC Chapter 123, state boat titling has not developed with similar uniformity. Boats are required to be titled in 34 states (including the District of Columbia), while no title is available in 16 states. In Mississippi boat titling is optional. Even in the states requiring boat titling, legislation is not uniform. The sizes and types of vessels to which the titling law applies, as well as exemptions, vary among states. In most states the boat title is held by the secured party, but in about eight states the boat title is held by the owner and the secured party instead receives a notice of security interest.

Much detail and background on the UBOTA undertaking can be found at http://www.abanet.org/dch/committee.cfm?com=CL190020. Those who wish to keep informed of the ABA’s subcommittee's work should contact Williams at DMWilliams@GandWlaw.com.

HAVE YOU COMPLETED THE NMBA SURVEY?

The annual members’ survey results for 2009 are due to be submitted by April 15^th so if you haven’t completed your report yet please do so today! Those members that participate in the survey will receive their complimentary copy when the findings are released late 2^nd quarter. If you did not receive the survey via mail or email please contact the NMBA at 312-946-6260.

PRIORITY ONE PROVIDES SEA TOW MEMBERSHIP

Priority One Financial Services, the F&I outsourcing provider, and Sea Tow, a marine assistance provider, have partnered to give their dealer network’s customers a free Sea Tow membership, through the company’s Sea Care program. New boat purchases are eligible for a free 95-day membership; used boat purchases are eligible for a free 60-day membership. Customers will have the option to secure an extended annual membership at the time of the free offer.

Sea Tow membership offers unlimited free towing, jump starts, fuel drops, prop disentanglements, navigational assistance, retailer discounts, a subscription to Lifelines magazine, invitations to member-only events and more. Whether customers need financing or not, this program is available to any customer that is purchasing from a Priority One dealership. Said Gary Rademaker, Strategic Alliance Director for Priority One, “We are now able to provide our dealers with a hassle-free, value-added program that they can offer to their customers, while customers enjoy the security of Sea Tow.“

PRACTICAL YACHT INSURANCE CLASS LED BY MIKE SMITH

Mike Smith, President of Global Marine Insurance, presented the “Practical Yacht Insurance” class to the Macomb County Independent Insurance Agents Association in Chesterfield, MI on April 14^th. The class is approved by the Michigan Insurance Department for four credit hours as part of the state-required continuing education program. The class covers the history of yacht insurance, companies in the market, terms and conditions of yacht policies, loss exposures, underwriting criteria, rating philosophies, Admiralty law issues and risk management techniques. Smith is recognized as a leader in the industry and has provided similar training for Michigan’s agents in prior years.

INFO-LINK BELLWETHER REPORT UPDATED THROUGH FEBRUARY

Based on new U.S. boat registrations. Bellwether states are geographically dispersed states representing roughly half of the U.S. boat market (varies by market segment and time of year). The graphs can be viewed at: www.info-link.com/bellwetherreport.asp. For more information, contact Jesse Wells, 786/888-8242, jessew@info-link.com.

COBURN LAUNCHES LLC

While Coburn & Associates was founded in January, 1995, managing partner and NMBA Past President Jim Coburn advises he converted it into an LLC earlier this year. "We plan on introducing a new company name in the near future that better reflects what we do."

Currently the firm provides coaching and consulting services for banks, finance companies, dealers, and other retail businesses, including strategic planning, business plans, sales plans, and loan proposals designed to improve profits and productivity. "We want to help businesses grow, eliminate sleepless nights, improve productivity and effectively free-up executive's time."

Coburn is a 30 year bank executive with expertise in retail banking, consumer and floor plan finance with experience in the marine, RV and powersports industries. Contact him at 586/530-3935; CoburnAssociates@sbcglobal.net.

WSJ FEATURES RECOVERY BUSINESS

NMBA Associate member Ken Cage, President of Operations of International Recovery Group of Orlando, FL, was the subject of a March 20 Wall Street Journal article profiling a day in the life of a “collateral retriever.” The article, titled “Cries of 'Hey, That's My Jet!' Don't Deter High-End Repo Men,” points out that “Business is thriving, even as the economy begins to improve. [IRG] repossessed more than 700 boats, planes, helicopters and other property last year valued at more than $100 million … Business, [Cage] says, is up six-fold from 2007.” Cage adds that the story “Has led to some crazy exposure and literally dozens of people all over the world are writing to us asking us to find boats and airplanes for them to buy.” To read the article, go to http://online.wsj.com/article/SB10001424052748704125804575096392965...

NMBA MEMBER NEWS CORNER

We are pleased to welcome our newest member (since October 2009) to the NMBA ranks:

ASSOCIATE MEMBER

Mark Buhler, President
Buhler Law Firm P.A.
555 Winderley Place, Suite 300
Maitland, FL 32751

NMBA MOVES OFFICE

On May 13th NMBA will relocate to a new office.

231 South LaSalle Street - Suite 2050
Chicago, IL 60604

Note: Telephone, fax, email and web address will remain the same.

New items which are germane to the marine financing field will be considered for inclusion in the newsletter. Send information to the address below.

Address changes and subscription requests should also be directed to the address below:

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The National Marine Bankers Association welcomes contributed editoral to its newsletter and claims no responsibility for the views, opinions and statements of fact expressed by the authors of the articles.