Book Review by Kenneth D. Peters*

“Workouts and Enforcement for the Secured Creditor and Equipment Lessor,” by Frank Peretore (Mathew Bender, 675 pages, $239.00, available on Amazon)

 The law on equipment finance encompasses a broad range of transactional, litigation and bankruptcy issues. Each of these three basic areas within equipment finance occasions a confluence of black letter law, nuance and occasionally, conflicting case authorities. Divergence among state laws is not uncommon.  So the question becomes: What is an equipment finance professional to do when a borrower or lessee fails to perform?  Now, an answer has arisen.  Turn to the 2015 edition of Workouts and Enforcement for the Secured Creditor and Equipment Lessor by Frank Peretore, Esq.

The equipment finance industry has been in need of a one stop source for practical, pointed directions and insights. Unlike treatise authorities, narrowly focused periodical articles, or expensive time consuming legal research projects, Mr. Peretore addresses many if not most of the basic difficult issues that from time to time confront an equipment finance professional. The author clearly has broad practical experience in addressing equipment transactions. In fact, Mr. Peretore’s book is organized as a journey from the inception of a problem in the performance of an equipment loan or lease through the end game arising out of bankruptcy issues.

Anyone who has navigated problems in equipment finance, whether as businessperson or lawyer, may find keeping this book on her desk to be a first step in cutting through the thickets of gnarly loans and leases.   The book can help save you money with its advice on adequate protection and cash collateral problems.  For example, the author explains that the “adequate protection concept often fails in its application.”  However, the author simultaneously explains where the problems arise so the reader can plan accordingly. In less than one page, Mr. Peretore outlines all the basic terms of a typical good adequate protection order. I have practiced in this area for many years but found his advice helpful. This guide book will be a source for me to double check my own adequate protection orders.   The book can also help the businessman save time and money in discussions with lawyers by cutting through some of the difficult to understand lawyer advice. Another example of the book’s usefulness is in the discussion of hell-or-high-water clauses, and how to handle the issue of divided authorities on the related issue of when equipment acceptance occurs such that the hell-of-high-water clause is enforceable. Similarly, the discussion of garagemens’ and landlords’ liens is illuminating and useful.

Though the book is impressive and will likely be useful for both lawyers and equipment finance business professionals, all books have limits. This book could have engaged in a more expansive discussion of certain subjects which frequently bring up difficult questions, such as TRAC leases.  Also, although the book has many excellent templates, it relies largely on the law of just a few states as a basis for presenting its templates when the law of some states, such as Texas or California, will be somewhat different. But these are minor criticisms.  Using Workouts and Enforcement for the Secured Creditor and Equipment Lessor is like using Siri for directions versus a paper map.   After thirty plus years as both a businessman and lawyer, I suggest you put  Workouts and Enforcement for the Secured Creditor and Equipment Lessor  on your desk.

Mr. Peters is a member of Dressler & Peters, LLC in Chicago, has been licensed in Illinois since 1983 and is registered to practice in twelve US District Courts and US Courts of Appeal.  Ken has filed pro hac vice appearances or been lead counsel in equipment finance cases in more than 35 states.  Workouts and Enforcement for the Secured Creditor and Equipment Lessor is always present on his desk.