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Tips For Turning That Court Judgment Into Money
In This Issue
Laurie R. Hager, Attorney
Tips For Turning That Court Judgment Into Money ............ 1
One of the most common reasons for a business (or person) to file a lawsuit is because it believes it is owed money. The debt claimed may be the result of a breach of contract, a personal injury, or an injury to property.
Chair’s Message...................... 3 President’s Message................ 3
No matter how the debt arose, a successful claimant will receive the same piece of paper at the end of the case: a judgment from the court requiring the defendant (now the judgment debtor) to pay the business or person claimant (now the judgment creditor) a certain sum of money. These judgments are wonderful pieces of paper. However, claimants cannot take a judgment to the bank and exchange it for cash. So, how do claimants get what they really wanted in the first place – money from judgment debtors?
2013-14 Board Members......... 4 International Corner................ 6 Honors & Awards.................... 7 Certification Program............... 7 NOF Scholarships.................... 8 Certification Success............... 9
There are a number of options, and the best one will depend on the circumstances of each case (or on the particular judgment debtor). For example, a judgment creditor can garnish a judgment debtor’s bank accounts or employer to obtain money. A judgment creditor also can garnish a person or business to intercept money that would otherwise be paid to the judgment debtor. A judgment creditor also can have the sheriff sell the judgment debtor’s real estate or personal property. Other collection options exist as well.
Designation of Excellence Award Nomination Form.................... 10
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Contacts................................. 18
Higher Education Financing..... 12 Education............................... 15 Credit Learning Center............ 16
International Communication Tips for Credit Professionals Personal relationships are an
important part of business dealings in Latin America, where punctuality is a variable commodity and business meetings often start and end late. In France, a bright line separates a person’s work life and their home life. Business people in certain Arab countries sometimes use the word “yes” in order to delay a decision, rather than to make one.
Every culture has its standards and mores, and recognizing them, or, at the very least, not running afoul of them, is a vital part of any credit and risk professional’s international development. Here are some tips: Know Before You Go Do your research on the culture of the country that you’re exporting to before you export to them. If possible, get in
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touch with your own company’s human resources in that country in order to practice and prepare before getting in touch with your newest international customer. Recognize High Context vs. Low Context Communication Styles High context cultures like those in Asia or the Middle East communicate
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In Memoriam Jeffrey O’Banion The entire NACM Oregon Association would like to take a moment to honor, mourn, and celebrate the life of Jeffrey L. O’Banion, CCE, ICCE, who unexpectedly passed away on May 5th. Jeff was a colleague, mentor, confidant, and dear friend to credit professionals in NACM and CFDD across the entire country. He was an active and dedicated member of this association, involved on numerous committees over the years. Jeff was also a past NACM Oregon President. Jeff’s unwavering dedication and contribution to NACM and CFDD, both at the local and National level, was unparalleled. He constantly encouraged members to pursue continuing educational opportunities as the most valuable way to enhance professional growth in the field of credit and finance. Jeff had a subtle way of making you feel comfortable enough to step out of your comfort zone to reach beyond your own goals, perceived limits, and expectations. Jeff will always be revered and remembered as a consummate credit professional, always generous with his time to mentor others. His awards, honors, and accolades are too numerous to list; suffice it to say that Jeff has been recognized with every local and National award honoring meritorious service to the NACM and CFDD organizations. He left an indelible footprint in the success and continued growth within the credit community; he will also hold a very special place in our hearts forever. In lieu of flowers, the family has requested that donations be made to the NACM-Oregon Foundation: NACM-Oregon Foundation C/O NACM Oregon 7931 NE Halsey, Suite 200 Portland, Oregon 97213
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Message from the Chairman
Message from the President
As I write this, a new season is upon us and I am feeling that the light at the end of the tunnel may just be a light instead of a train. While our economy is still struggling and I don’t pretend to be an economist, things feel better, busier, and more vibrant. I hope you are all feeling the same.
Lots going on at NACM in the next few months . . .
One of the goals I set for myself this year was to meet as many members as possible and one of the steps to reach that goal is to attend every local group meeting. So far I have attended at least eight and it has been a pleasure to meet everyone. If I haven’t met you yet, I look forward to doing so. As your Board, we have taken on as one of our tasks, how to grow our membership. As those of us identified as “Boomers” start leaving the workplace, we need to insure that as an association we are vital and relevant to those who come behind. If any of you have any insight into this topic, I would welcome your input. Please contact me at mjohnson@tectrucks.com and I will arrange to meet with you. Credit Congress was a rousing success this year. The classes and speakers were excellent. Additionally, I was honored to accept an award, on behalf of NACM Oregon for Membership Growth for 2012. Please start planning for next year, by making sure Credit Congress is in your budget for 2014. Congratulations to Barbara Davis, CCE, and Charlene Gothard who have been elected to serve on the National Board of Directors for CFDD. It is an honor to have two NACM Oregon and CFDD Portland Chapter Members representing us. Thank you both for your service. We have two excellent speakers coming in the next couple months, Bruce Nathan will be here on July 18 to lead us through “Bankruptcy Rumblings: Identifying & Mitigating Risk.” If you haven’t heard Bruce speak before, you really should. It is a treat. Scott Blakeley will be here in August and again, he is an excellent speaker and one that you should not miss. Rod is teaching a 2013 Business Credit Principles starting on July 17. If you are working towards your certification, you need this class. So please sign up.
• Bruce Nathan will give a mini-session on the topic of identifying and mitigating risk in situations where there may be insolvency or a pending bankruptcy filing on July 18, 8 a.m. in the NACM Classroom. • “Business Credit Principles,” a course required to sit for the CBA designation, will start on July 17, 1-4:30 p.m. for ten Wednesday afternoons. Mike Bena, CCE, and I will teach this class. • Scott Blakeley will give a mini-session on the topic of customers setting payment terms and pushback programs credit managers can use on August 6, 8 a.m. in the NACM Classroom. • An NACM Meetup will be held on August 14, 4:30-6:30 p.m. at Grand Central Bowl. Here’s an opportunity to meet Sales, Customer Service, and Industry Group staff. • “Financial Analysis for the Trade Creditor,” a course required to sit for the CBA designation, will start on October 1, 1-4:30 p.m. for ten Tuesday afternoons. Mike Bena, CCE, and I will teach this class. • A breakfast membership meeting will be held October 15. The 2013 Designations of Excellence will be awarded, and John Mitchell will give an economic update on where we are, how we got here, and where we may be going. • The annual NACM open house will be held the afternoon of December 11. Have you used the 25 credit reports included in your membership? Need some help? Contact your Account Executive or Customer Service (971-230-1220), and one of the representatives will be glad to walk you through the process and the report.
Best wishes for an enjoyable Summer!
I hope you all have a wonderful summer—thanks again for your membership.
Marsha Johnson, CCE TEC Equipment, Inc. mjohnson@tectrucks.com
Rod Wheeland, CCE, CAE Direct: 971.230.1158 rwheeland@nacmoregon.org
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A
t the Annual Meeting held April 25, 2013, the 2013-14 Board of Directors were introduced. NACM Oregon President, Rod Wheeland, CCE, CAE, provided a review of the 2012 operating results and the Board Chair recognized long-tenured members and Past Chairs. Luncheon speaker, Kerry Tymchuk, Executive Director of the Oregon Historical Society, presented “Oregon’s Historic Trail.” The event also featured an educational session, “Negotiation Skill Building: Ask for the Business/Close the Deal” presented by David L. Osburn, BMA, Osburn & Associates, LLC.
A Look at the 2013-14 Board Members
Front row (l to r): Raeann Binau, ICCE, RGCP; Scott Smithhisler; Linda Bishop, CCE, CICP; Paula Cooley, CBA; Lori Jones, CCE; and Marsha Johnson, CCE. Back row (l to r): Jacqueline Bloom, CBA; Pat Swope, CCE, CICP; Will Campbell; John Hardy; and Steve Amiel.
Kerry Tymchuk
David Osburn, MBA David is the founder and managing member of Osburn & Associates, LLC. His extensive professional background encompasses more than 27 years in banking, finance, and marketing.
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Kerry serves as the Executive Director of the Oregon Historical Society and is a fifth generation Oregonian. Prior to assuming the helm at OHS in April 2011, Tymchuk earned a reputation as one of Oregon’s most respected public servants.
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Gavel Acceptance
Retiring Director
John Hardy accepts the Chairman’s gavel from Marsha Johnson, CCE, in recognition of his service of the past year.
Marsha Johnson, CCE (l), presents a plaque to retiring director, Sue Hein. We thank you for your many years of service to the Association.
Tenure Membership
A
t the Annual Meeting, several member firms were honored for their continuing support of the association. The following firms received a plaque in recognition of 25 years of membership in NACM Oregon. From (l to r): Elaine Duquette, accepted the plaque on behalf of Ideal Steel; representing International Wood Products, Christina Evans; representing Stoner Electric, Neal Rea; and representing Sussman Shank LLP, Barry Caplan. On far right, Doug Jacobson, CCE, accepts a plaque honoring xpedx’s 75 years of NACM Oregon membership.
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International Corner, by Alice Knight, RGCP Summer is here, the traditional time
for vacations and scrambling to cover other areas while some lucky people are basking in the sunshine! It is time for manager’s remorse – why or why didn’t we spend more time cross training? It is also the time to remember and appreciate how all the pieces fit together. Nothing gives you a better appreciation of someone else’s responsibilities than having to assume them for a while. This is an excellent opportunity to review information flow. What does this desk need that I have readily available or conversely what information is here that I often need and do not have? No one works in a vacuum. The more we integrate knowledge and data flow the better for the whole company. One way to share information is to give formal or informal updates when you attend a conference, seminar, symposium, or training session. One of the biggest knowledge transfer breakdowns occurs when someone attends a great conference or seminar and then keeps all the information to themselves. ICTF’s Global Credit Professionals Symposium is a good example. With over 140 attendees from all over the United States and several foreign countries the information available through formal presentations and informal networking was extensive. One presentation focused on Corporate Compliance particularly the Foreign Corrupt Practices Act. This is not a new law but the Department
of Justice has listed investigation and prosecution under this act as a high priority. Other Compliance laws, Money Laundering for example are also hot topics. This information needs to be shared with almost all areas of the company including marketing, sales, logistics, treasury, finance, A/R, cash application, and upper management. Compliance in general is a huge issue and some industries, banking for one, are hiring more compliance officers than sales or loan officers. Companies need ongoing current information in order to effectively manage compliance risk. Another presentation, “Where Do Banking and Credit Insurance Intersect?” explored how banks evaluate credit versus how credit insurers evaluate credit, what risk mitigation tools banks use, how banks view credit insurers, and how credit insurers view banks. This interchange provided many practical tips for dealing with banks and credit insurers. This is good information for treasury and finance as well as the credit area. Also included in this session was an update on Basel I, II, and III and the potential impact on the cost and availability of Letters of Credit, Confirmations and Trade Finance. There is a possibility under Basel III that commercial Letters of Credit would carry an 100% credit conversion factor (CCF) which would greatly increase the reserve requirements for issuing banks. There is ongoing discussion about some of the provisions and the implementation timing for Basel III in the United States and Europe so there will be changes. The take away was to be
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prepared for increased costs on Letters of Credit, Standby Letters of Credit, and Confirmations. Some European banks have already started transferring these types of transactions to U.S. banks. Plug into the international information network and pass on the appropriate information to others in your company.
Alice Knight is Vice President of Finance & Administration for Paper Products Marketing, Inc. Ms. Knight has more than 48 years' of experience in International Finance and is an active member of ICTF and NACM. She has served as Co-chair, Panel Member, and Presenter at Annual Global Conferences, and as President of ICTF Forest Products Group.
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Honors & Awards Congratulations go out to Kathi Pieper, CBA, Pacific Seafood Group, who received her Certified Credit & Risk Analyst designation. And, congratulations to Carrie Wise, Redmond Heavy Hauling, who successfully completed the CBA exam and Casey Wilkins, Cardinal Health, Inc., who successfully passed the Certified Credit Executive exam. NACM Oregon applauds their success!
NACM Certification Program If you are interested in pursuing a professional designation you should be aware of the designation registration and application fees.
The CBA, CBF, and CCE exams will be given at your local Affiliated Association office on the dates listed below:
The registration fee, to open a file in your name, is $175—members; $275— nonmembers and is non-refundable. The application fees for each exam are as follows: Credit Business Associate (CBA) exam is $225—member; $325— nonmember. Credit Business Fellow (CBF) exam is $275—member; $425— nonmember. Certified Credit Executive (CCE) exam is $375—member; $525— nonmember.
Exam Date: July 29, 2013 Exam Date: November 4, 2013 Deadline: September 9, 2013
These fees cover each individual designation process. Should you fail to complete the process by not taking the exam within one year of your written approval, you will need to reapply. The application fee is not divisible; no part will be refunded should you not complete the process.
And remember, the NACM-Oregon Foundation provides scholarships for registration and testing fees.
To download the complete PDF Version of NACM’s Professional Certification Program brochure click here.
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NACM-Oregon Foundation
Scholarships
The NACM-Oregon Foundation grants scholarships to credit professionals for continuing education, professional designations, and conference expenses. To apply for scholarship funds, or for more information, contact Lourdes (Lou) Rice, NOF Scholarship Committee Chair, Pacific Metal Company at 503.454.1051 or lrice@pacificmetal.com. CFDD National Conference— September 19-20, 2013, Albuquerque Marriott, Albuquerque, New Mexico Four (4), $500 scholarships. Deadline: July 31, 2013 Phylliss Clark Scholarships Two (2), $500 scholarships. Applicants must be a CFDD member of the respective chapter and a first-time attendee to the CFDD National Conference. Each CFDD Chapter—Portland and Salem/Albany is allowed one scholarship funding. Deadline: July 31, 2013 Phylliss Clark Memorial Fund The Phylliss Clark Memorial Fund was established in honor of the well-known and respected manager of the NACM Oregon education/communications department, who died in an auto accident Memorial Day weekend in 1993. Because of Phylliss Clark’s strong interest in and commitment to education, and her dedicated service to NACM and CFDD, it was determined that a fitting memorial would be to establish an endowment in her name, the earnings of which would be used to promote education of deserving credit professionals. Each year, earnings from the endowment are distributed as scholarships to selected members of the two Oregon-area Credit & Financial Development Division (CFDD) chapters to offset registration and attendance costs to the CFDD National Conference. In selecting these yearly scholarship recipients, special recognition is given to first-time attendees of the conference.
Submit applications to: Lourdes (Lou) A. Rice NOF Scholarship Chair Pacific Metal Co. 10700 SW Manhasset Dr. Tualatin, Oregon 97062 p: 503.454.1051 f: 503.454.1065 e: lrice@pacificmetal.com
Professional Certification Fees To establish your file with NACM National; reimbursement of exams fees after a passing grade; recertifications (NOF pays for 50% of the fee)—$1,000 total; and $1,000 total for seminars and classes related to certifications. Western Regional Conference October 16-18, 2013, Golden Nugget Resort & Casino, Las Vegas, Nevada Four (4), $500 scholarships Deadline: August 31, 2013 To apply— To apply for scholarship funds, or for more information, contact Lourdes (Lou) Rice, NOF Scholarship Committee Board Director, Pacific Metal Company at 503.454.1051 or lrice@pacificmetal.com.
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Key to Success by Jake Faris
Barbara Davis, CCE, has been the Credit Manager at NW Pump & Equipment for just two years. Prior to that she worked at Liberty Northwest—a division of Liberty Mutual that handles commercial property and casualty insurance—since graduating from PSU with a degree in finance. Starting at Liberty Northwest as a file clerk, Davis quickly moved into their credit department. It was there that she first became familiar with NACM, of which Liberty Northwest had been a member since the 1980s. As a Senior Credit Analyst Barbara earned her Credit Business Associate (CBA) certification. After Davis was promoted to credit manager she earned her Credit Business Fellow (CBF) certification. As credit manager, she supervised a department of credit analysts and made decisions about more complex accounts. She enjoyed the work she was doing. “I like the financial aspect of it,” says Davis. “It’s an ever-changing profession. There’s always something new that comes up. There’s never a dull moment.” In 2005, Davis received her CCE. She encouraged her staff to also get involved with NACM and achieve certification. Several attended educational offerings and three credit
analysts earned their CBA designation. “Mentoring these individuals to achieve their designations and advance their career development was one of the highlights of my time at Liberty.” However, as organizational shifts at Liberty changed her role, Barbara decided to seek opportunities elsewhere. “I really thrived on being in credit management, so I wanted to continue down that path” That’s when she applied for the vacant credit manager position at NW Pump. Davis hasn’t looked back. At NW Pump, she has the duties of a corporate credit manager, but in a completely different sector. “This has been a totally new industry and a great opportunity,” says Davis. NW Pump is a distributor of petroleum and industrial equipment and car wash systems. Some things, however, were very familiar. NW Pump had been a member of NACM since the 1970s and she quickly set to work promoting NACM involvement, mostly with educational opportunities. Some of the credit analysts Davis supervises are involved in NACM industry groups. “They are really getting a lot out of it. I also have a few that want to pursue more development in their career.” One way to develop as a credit manager is by getting involved with the CFDD—or Credit Financial Development Division—of NACM. As a CFDD Portland and National Board member, Davis knows the organization
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well and highly recommends it. As she puts it, “CFDD promotes professional development through education, mentorships, and networking.” At CFDD, it’s not credit everywhere, all the time. “The local CFDD chapter holds monthly educational meetings which sometimes cover topics outside of credit that still applies to our daily jobs,” says Davis. “And we have several members available to mentor individuals.” Davis sees boosting NACM and CFDD involvement—and possibly certification—as a benefit not only to her company but a credit professional’s career. “Certification could lead to career advancement,” says Davis. “It opens up opportunities in your profession and education. It also improves the way people view you in your profession. They take you more
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Key to Success continued from page 9
Davis has experienced this first hand. “CCE certification is a grueling process but when you’re done you feel a sense of achievement and pride,” she recalls. “And I think it’s one of the things that elevated me to one of the top candidates to the [Credit Manager] position [at NW Pump].”
Jake Faris is a business technology consultant and sometimes-freelance writer who lives in the Portland area with his wife, Charity, and their two children, Harper and Xavier.
Awards Excellence
seriously. It says ‘this is someone who wants to develop and work their way up in their company or in their profession and also contribute to the company’s success and achievements.’”
of
Please submit nominations for NACM Oregon Award!
The NACM Oregon Honors & Awards Committee is accepting nominations NOW for local members of our affiliate to be recognized in the following five categories: 1. 2. 3. 4. 5.
CBA Designation of Excellence CBF Designation of Excellence CCE Designation of Excellence Credit Executive of the Year Mentor of the Year
Award recipients will be recognized at the annual NACM membership breakfast meeting in October and will become our affiliate nominees for recognition of the NACM National Awards presented at the Annual NACM Credit Congress. Who has had a positive impact on your personal and professional career through mentoring, education, and networking? Who is an active participant in the NACM Oregon membership and an advocate for the credit profession? If you know someone who should be nominated in one of these categories, please complete and submit a nomination form with a brief letter of recommendation by July 31, 2013. I encourage you to submit a Designation of Excellence Award Nomination Form with a brief Letter of Recommendation. Thank you for taking the time to nominate fellow NACM Oregon members for well-deserved recognition.
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Brett Hanft, CBA Committee Chairman
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Purina Animal Nutrition LLC 15840 N Simmons Road Portland, OR 97203
June 7, 2013 I would like to thank the NACM-Oregon Foundation for the scholarship to attend the 2013 NACM Credit Congress in Las Vegas. The funds that I received help to offset my out-of-pocket cost for the event. I feel that attending events such as this enable me to learn, network, and participate to the full extent. I had the pleasure of being installed as the new CFDD Vice Chairman of Member Services on the CFDD National Board. I attended full days of educational classes and brought back great information and tools to share with other members of my company’s credit teams. I find the networking and time spent with other credit professionals only enhances me, and by taking on a leadership role within the CFDD organization allows me to share and lead with the necessary tools. I had the pleasure of presenting to the CFDD Board another three-part module on professional development. Last year I worked with two past National chairmen on the first of the professional development modules and I worked with two others this year for the second part in the series. Attending these types of events have put me in contact with members and given me the confidence and knowledge to take on these projects. This year, I was asked to speak at the CFDD luncheon about Jeffrey L. O’Banion, CCE, ICCE, and the impact that he made in so many credit professionals lives, in the organization, and remember that we all have that in us and that he might have just done it a little better. The reason that I am involved on a National level is a direct reflection on Jeff. He has pushed and prodded me to step up and to participate and the funds from the Foundation have allowed me over the years to do just that. The support the Foundation has given me has allowed me to become active on the National level. I thank you, the Foundation, for the assistance you have given me and I will continue to support and encourage others to pursue excellence within the credit profession. Respectfully submitted, Charlene Gothard
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Higher Education Financing—Thinking Outside the Box by Cindy Robert On July 1 Congress allowed student loan interest rates to double from 3.4% to 6.8%. This happened amidst a growing national conversation about the soaring price of higher education. The public is angry, and the focus has turned away from cost drivers to financing options. Rather than discovering why the price of education is so much higher than the actual cost of education, the easier (and “sexier”) solution is to find a different way to borrow. The idea that has garnered media attention is playing out in Oregon. ABC, FOX, CNN, New York Times, and the Wall Street Journal have all reported on HB 3472 and the “Pay it Forward, Pay it Back” idea that a Portland State University class first brought to Oregon legislators. Australia uses a similar program and a public policy think-tank in the U.S. recently wrote a paper about the concept, but no states or institutions in America currently use such a system. HB 3472 directs Oregon’s Higher Education Coordinating Commission (HECC) to consider a pilot project implementing the program and then report back to the 2015 legislature. While the bill passed, there is a long way to go before such a program is a reality—the HECC would need to study, develop a pilot program, return to the legislature for approval of the pilot program, and then find the money to fund it. Full funding of such a program is estimated to cost $9 billion over approximately 25 years, when enough students have graduated and are paying into the system to make it self-sustaining. What a pilot would cost remains to be determined. Pay it Back The program would provide tuition funds for students in return for their commitment to repay a set percentage (3% is the figure often used in discussions) of their salary over the next 24 years.
• What about students who do not complete their degrees? • Is there a limit to how long someone can take to graduate? • Who keeps track of salaries for students and makes appropriate garnishments? There are also basic questions about the equity of such a program:
Pay it Forward That extra four years provides the “pay it forward” portion as numbers show the average tuition will be paid back by 20 years, but the additional 4 years of assessment will provide money back into the system for the next cohort of students. The Numbers • According to Fidelity, the average amount of college loan debt from the class of 2013 was $35,200. • In an average school year there are about 21,000 first-year students in public state colleges and universities in Oregon. • The average cost for a four-year degree for an in-state student at Oregon universities is about $31,000 (remember, we are just talking about tuition, not the other financial factors of post-secondary education). • Just using a flat salary of $50K per year (about the median income in Oregon) over 24 years and assessing 3%, the graduate will pay $1,500 per year, or $36,000 for tuition. $6K more than the loan, which goes back into the program. Besides the actual numbers, there are many operational details that will need to be worked out: • Where does the seed money come from?
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• Is it fair that graduates who get paid more, pay back more than their share even though the cost of their education was the same as the low-earner? • How do we account for the fact that the value of the $1 changes significantly over 24 years? • What if a student has a scholarship or a 529 savings plan that will pay for part —would they still have to pay back the same rate for the same length of time? Oregon ranks No. 42 for higher education spending, so the need for a change is weighing heavily on public-policymakers’ minds. But is such a program just moving the chess pieces around and delaying the inevitable? While out-of-the box thinking is good, our search for something new must acknowledge that the parameters of the situation have not changed, so the problem still exists.
Cindy Robert has been lobbying the Oregon State Legislature for almost two decades, with clients ranging from local governments to fortune 500 businesses to non-profits. Cindy is an expert in all aspects of government relations, legislative strategy, campaign development and advising, organizational development and governance structure, corporate partnership and leveraged packaging.
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UCC News & Announcement Coming July 1! Oregon has adopted the uniform Amendments to Revised Article 9 (ORS Ch. 79) and they take effect on July 1, 2013. UCC financing statements and the Corporation Division Administrative Rules will be revised to conform to the new requirements. What does this mean to you? Searchers: Nothing changes to the UCC search logic or the functionality of the online searches. Because of changes in the filing requirements (see below) you may want to change your own search habits. Filers: • Debtor name changes—the requirements for the debtor name change under the new law. ORS Ch 79.0503
• Debtor organization information— the new law no longer requires the type, jurisdiction, and identification number of the organization, and there is no place for that information on the new forms. ORS Ch. 79.0516 • Statement of Claim becomes Information Statement—as provided in ORS Ch. 79.0518, both a debtor and a secured party may now file a statement to correct the record if they believe a filing was made in error.
American Express Now Accepted NACM Oregon is happy to announce that we now accept American Express credit card payments for payment on our invoices. This is for invoice payments only. We still do not accept American Express for collections claim payments.
Transition: The Corporation Division will accept the new forms beginning July 1, 2013. It will continue to accept the pre-2010 version of the model UCC forms until August 1, 2013. The UCC eFiling system will be updated on or before July 2, 2013 and will conform to the new statutes.
An organization name is established through the “organic public record” of the entity. Therefore, the actual name of the entity is found on the latest change in name in the entity formation documents. For example, the articles of incorporation, articles of amendment changing the name, or the latest restated articles of incorporation or organization. To discover what the name actually is, you will want to see copies of those documents.
Individual debtor names are established by the current state driver license or ID card, the individual name, or the surname and first personal name of the debtor.
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Testimonial I am quite happy with NACM. I enjoy the monthly meetings and working with the other members of my industry group. It is so beneficial to have others to turn to when I need credit references or knowledge about an existing business. I also appreciate that I can find information on the website, participate in webinars and classes when I need to, or even email a question if I can’t find the answer elsewhere. NACM is a great asset to have at my fingertips! Mary Robertson Sunshine Dairy Foods
2014 C redit C ongress & E xposition
National Summary of Domestic Trade Receivables Results 1st Quarter 2013 We have received the results of the National Summary of Domestic Trade
Receivables (DSO) for the first quarter of 2013. The Credit Research Foundations (CRF) has been producing this valuable quarterly report for more than 50 years.
Join us next year at the Rosen Shingle Creek Resort June 8-11, 2014, Orlando, Florida, for the year’s largest gathering of business credit professionals in the country.
DSO slightly increased from the prior quarter to 40.10 from 39.97. A year ago the measure was 83.01. Best Possible DSO increased to 32.60, as compared to 32.15 last quarter and 32.00 a year ago. Average Days Delinquency increased to 4.67 from 4.30, as compared to 5.30 a year ago. The percent reported over 90 days past due decreased to 0.35 as compared to last quarter at 0.41, as compared to 0.41 a year ago. Medians for 28 different industries are included in this summary. If any SIC code has less than three responses, it will not appear in the report. So to get more participation in your industry, please mention the survey to your colleagues, and in July when we survey the 2nd quarter of 2013, pass along the link for them to participate. Please contact Customer Service or your Account Executive for a copy. Now that you’ve done the NSDTR, if you really want to see how you’re doing, you’ll want to participate in CRF’s comprehensive Benchmarking survey. You can do that at: http://www.crfonline.org/surveys/benchmarking/benchmarking.asp.
7931 NE Halsey, Suite 200
Portland, Oregon 97213
Tel 503.257.0802
Fax 503.257.0247
www.nacmoregon.org
NACM Oregon Business Credit Journal
JULY/AUGUST 2013
NEWSLETTER Page 15
Upcoming Education Business Credit Principles—July 17 - September 17, 2013, 1-4:30 p.m., NACM Oregon Classroom Course Objective: To provide the student with a comprehensive overview of the principles of business credit management. Outcomes: Upon successful completion of this course, the student will understand the role of credit in the economy and in the financial management of the company, effective trade credit policies and procedures, the legal environment of credit, terms of sale, negotiable instruments, the Uniform Commercial Code, the credit application, credit investigations and resources, credit enhancements, credit decisioning, resolving disputes and deductions, collection programs, out-of-court settlements, and bankruptcy.
Instructors: Rod Wheeland, CCE, CAE, President, NACM Oregon and Michael Bena, CCE Text: NACM, Principles of Business Credit (6th Edition, 2009) Fee: $295—members, does not include text. $495—nonmembers, does not include text. Scholarships: May be available through the NACM-Oregon Foundation or your CFDD chapter. Register: contact Shawna Kelly at 971.230.1202 or skelly@nacmoregon.org or go to www.nacmoregon.org/events.
Financial Statement Analysis I—October 1 - December 3, 2013, 1-4:30 p.m., NACM Oregon Classroom Course Objective: An introductory course in financial analysis, this class provides the student with an overview of the basic financial statements, quality issues in using these reports, and analysis of these statements for the purpose of making trade credit decisions. Outcomes: Upon successful completion of this course, the student will understand the audit process, the basic financial statements, the audit letter and footnotes, various techniques used in analysis of the financial statements, including common-sizing, ratios addressing liquidity, operational performance, and leverage, and cash flow analysis, and the use of these techniques in credit decisioning.
Instructors: Rod Wheeland, CCE, CAE, President, NACM Oregon and Michael Bena, CCE Text: Lyn M. Fraser and Aileen Ormiston, Understanding Financial Statements, 9th Edition, Prentice-Hall Publishing Company, 2010 Fee: $295—members, does not include text. $495—nonmembers, does not include text. Scholarships: May be available through the NACM-Oregon Foundation or your CFDD chapter. Register: contact Shawna Kelly at 971.230.1202 or skelly@nacmoregon.org or go to www.nacmoregon.org/events.
Special Offer for Facebookers and Tweeters! One complimentary registration will be provided at every NACM Oregon member activity, including all classes, for an individual who will memorialize these events with live tweets and Facebook posts. To apply for this special opportunity, please email rwheeland@nacmoregon.org. 7931 NE Halsey, Suite 200
Portland, Oregon 97213
Tel 503.257.0802
Fax 503.257.0247
www.nacmoregon.org
NACM Oregon Business Credit Journal
JULY/AUGUST 2013
NEWSLETTER Page 16
Credit Learning Center The NACM Credit Learning Center (CLC) is an online learning venue, created to bring 24/7 access to educational sessions for today’s busy business credit professional. What is the NACM Credit Learning Center? The Credit Learning Center brings targeted, quality education to your desktop from the name and brand you’ve trusted for more than a century - NACM. Carefully selected, expert instructors present 60-minute audio/visual presentations on a wide array of topics. You choose what learning module you want to take, and when, and view it on your computer at your convenience. You may also work toward completion of a course or specialty certificate. The Learning Center will continue to expand as more modules are created and added. How Do I Make a Purchase? The purchaser and the learner should be the same person - modules are purchased by, and sold to, individuals. The purchaser’s name must correspond to the user’s name. Companies wishing to purchase modules on behalf of multiple users should coordinate its purchase through the NACM Education Department. You can purchase a module today, and view it at any time – as your schedule permits. To learn more about the Credit Learning Center please visit http://www. nacm.org/credit-learning-center.html and click on the links.
Best Practice: Collection Techniques in the U.S. July 9 10 - 11 a.m. EST (T/W 60 Min.)
International Trade Receivable Securitization July 17 10 - 11 a.m. EST (T/W 60 Min.)
How to Write Effective Demand Letters July 10 3 - 4 p.m. EST (W 60 Min.)
Doing Business in Indonesia July 23 10 - 11 a.m. EST (T/W 60 Min.)
Foreign Exchange Basics and Approaches to FX Risk Management July 10 10 - 11 a.m. EST (T/W 60 Min.)
The Credit Manager’s Guide to Recent Regulatory & Legislative Changes July 24 3 - 4 p.m. EST (T 60 Min.)
Liens & Bonds: Managing the Process When Selling Nationally July 15 3 - 4 p.m. EST (W 60 Min.)
Documentary Collections July 24 11 a.m. - 12 p.m. EST (T/W 60 Min.)
Doing Business in Japan July 15 11 a.m. - 12 p.m. EST (T/W 60 Min.)
Certification Scheduled Exams July 29 Key Aspects of a Good Credit and Collection Policy August 7 3 - 4 p.m. EST (W 60 Min.)
Don’t forget to take advantage of your two complimentary webinars which are included in your Full Membership Package. To view the Event Calendar go to http://www.nacm.org/event-calendar.html.
7931 NE Halsey, Suite 200
Portland, Oregon 97213
Tel 503.257.0802
Fax 503.257.0247
www.nacmoregon.org
NACM Oregon Business Credit Journal
JULY/AUGUST 2013
NEWSLETTER Page 17
Judgment Into Money, continued from page 1
Communication Tips, continued from page 1
Before choosing among the many collection options, consider the following tips. 1. A claimant may already know where the judgment debtor banks, or be able to make a very educated guess. If a claimant has received a check from the judgment debtor in the past, chances are the judgment debtor still uses the same bank. If the judgment debtor filled out a credit application, bank account information may exist there. Also, people or businesses typically bank at a convenient location and use the same bank for multiple purposes. Thus, if a claimant knows where the judgment debtor obtained a loan, which bank has a mortgage against the judgment debtor’s real estate, or of a bank with a branch near the judgment debtor’s work or home, an educated guess may be possible concerning where the judgment debtor holds money that may be garnished. 2. Remember that a judgment in Oregon ordinarily is good for 10 years, and can be extended for 10 more years. In many instances, a judgment creditor will be unable to collect a large judgment against a person or a distressed company all at once. Even if a judgment is not fully collectible right away, don’t give up. Continue to periodically monitor the judgment debtor’s website, Facebook page or other information sources to spot signs of prosperity. Another tip is to time collection efforts with certain times of the year or month to target certain expected funds, such as tax refunds, year-end bonuses or invoice receivables. 3. Determine whether a judgment debtor has equity in real estate or personal property. A judgment debtor’s asset, no matter what the value, is worth nothing to a judgment creditor if it is underwater (that is, if the liens against the property exceed the value). Before deciding whether it is worthwhile to attempt to execute on a judgment debtor’s real estate or personal property assets, it is important to research the value of the property and the judgment debtor’s equity in the property. That also requires analysis of other creditors’ potential prior liens on the property. Website tools may give a preliminary indication of value. But information from the Internet should be followed up by research by qualified professionals. It is also important to remember that the value of a property presumably will increase, and the liens against it potentially decrease, over the 10-year span of the judgment (20 years if the judgment is extended). Claimants can draw inspiration from these tips and perhaps take another look at their judgments. Consider revamping efforts to collect. Reprinted with permission. Originally published in The Daily Journal of Commerce.
in a way that leaves many more things
open to interpretation and relies on the
strength of the business relationship to fill in information gaps. Low context cultures like those in the United States, Canada, Australia, and Germany leave little to the imagination and expectations are less inferred than explicitly laid out. Knowing the difference between these styles and which countries are high versus low context can prevent a lot of misunderstandings or miscommunications. Keep It Simple Some communication techniques never go out of style: consider your audience, listen effectively, speak slowly, repeat yourself, avoid slang and technical terms, use closed-ended questions. Also be careful with humor, as it isn’t always welcome in every culture and in front of every audience. Opening up a presentation with a small joke could be considered too casual to be professional, and using words like “fantastic “ or “amazing” could be viewed as childish or immature. Build a Network A credit professional’s ability to adapt their behavior to suit a particular culture is greatly enhanced by a diverse network of professionals. Leveraging the knowledge and experiences of your colleagues can greatly increase your chances of successfully gaining the trust of your international customers. Rewritten with permission from NACM National.
Ms. Hager is an attorney with the law firm of Sussman Shank, LLP. She can be reached at laurie@sussmanshank.com.
7931 NE Halsey, Suite 200
Portland, Oregon 97213
Tel 503.257.0802
Fax 503.257.0247
www.nacmoregon.org
NACM Oregon Business Credit Journal
JULY/AUGUST 2013
NEWSLETTER Page 18
Contacts NACM Oregon
Board of Directors Chairman Marsha Johnson, CCE TEC Equipment, Inc. mjohnson@tectrucks.com Vice Chair Pat Swope, CCE, CICP Pacific Seafood Co., Inc. pswope@pacseafood.com Secretary/Treasurer Linda Bishop, CCE, ICCE Tektronix, Inc. linda.j.bishop@tek.com Counselor John Hardy Emerson Hardwood Co. jhardy@emersonhardwood.com
Directors Steve Amiel Tektronix, Inc. steven.amiel@tektronix.com Raeann Binau, ICCE, RGCP Columbia Machine, Inc. raebin@colmac.com Jacqueline Bloom, CBA Wright Business Graphics jbloom@wrightbg.com Will Campbell Standard Supply Co. willc@standardsupplyco.com Tony Ceniga Industrial Finishes & Systems t.ceniga@industrialfinishes.com Paula Cooley, CBA American Steel Corp. pcooley@american-steel.com Lori Jones, CCE ljdangermouse@gmail.com Scott Smithhisler US Bank Global Trade Service scott.smithhisler@usbank.com NACM National Director Rick Weisman, CCE Graybar Electric Co., Inc. rick.weisman@graybar.com President Rod Wheeland, CCE, CAE NACM Oregon rwheeland@nacmoregon.org
7931 NE Halsey, Suite 200
Customer Service/ Credit Reporting 971.230.1220 services@nacmoregon.org
Industry Groups Richard Browning, CGA 971.230.1188 rbrowning@nacmoregon.org
Data Contribution Shannon Abnal, CGA 971.230.1166 sabnal@nacmoregon.org
Kristen McBride, CGA 971.230.1176 kmcbride@nacmoregon.org Collection Services Donna Gilmore 971.230.1206 dgilmore@nacmoregon.org
Member Services Kathy Linscott, CGA 971.230.1164 klinscott@nacmoregon
Dennis Corey 971.230.1204 dcorey@nacmoregon.org
Member Services Account Executives Clara Nemeth, CGA 971.230.1144 cnemeth@nacmoregon.org
Billing Marmie Carpenter 971.230.1146 mcarpenter@nacmoregon.org
Kendall Sun 971.230.1178 ksun@nacmoregon.org National Account Executive Caroline Anderson, CGA 971.230.1168 canderson@nacmoregon.org Education Shawna Kelly 971.230.1202 skelly@nacmoregon.org
Portland, Oregon 97213
Tel 503.257.0802
Meeting Room Rental Shawna Kelly 971.230.1202 skelly@nacmoregon.org Newsletter Editor Barbara Salazar 971.230.1182 bsalazar@nacmoregon.org Building Suites Lisa Rogstad 971.230.1160 lrogstad@nacmoregon.org
Fax 503.257.0247
www.nacmoregon.org