CMA Daily News

anscers Video Tutorial - Submit an Alert

We are creating short video tutorials on how to use the anscers.com system. Click here to view the first one "Submit an Alert".

Send your feedback on the video to damadril@creditservices.org.

CMA Annual Meeting 2008 PHOTOS

As always we look marvelous, with special thanks to our photographer Harvey Branman at Photography As An Art.

Click this link to view all the photos. You can download those you like and comment on the photos.

Message From Paul Beretz, CMA Credit Executive of the Year

Pictured Kevan Dragoo and Paul Beretz.

"What an honor to receive the "Credit Executive of the Year" award for 2008" from CMA! I am really humbled by the recognition and now able to join the ranks of past CMA credit execs of the year, some of who were in attendance at the membership meeting.

I've spent all of my business life in and around credit management and this award is truly one that I will treasure.  Much of my life has been devoted to education - first as an avocation when I was in the corporate world, and now as a vocation as I begin my tenth year in consulting. Besides the undergraduate and graduate programs I teach, I'm very pleased to have have been involved  in both the development and instruction for on line, certificate eduction. This would include the FCIB International Risk Management program as well as CMA's courses in Business Credit Principles, Financial Statement Analysis and Interpretation and Credit Risk Assessment. It's a pleasure working with CMA, a vibrant association that is taking the lead in providing timely, on-line education for credit and business professionals."

CMA Credit Executive of the Year - Paul Beretz

Pictured Kevan Dragoo, CMA's Credit Executive of The Year 2007. Here is his awards presentation speech to this years nominees and winner:

"Every year CMA asks it members for nominees for Credit Executive of the Year.  To be nominated is very special as it starts with a recommendation by your peers, which lets you and others know you have made a difference in someone’s career and the CMA organization.  To win the award is very humbling, as Eddy Sumar, said last year when presenting the award to me.

We had 6 nominees this year and unfortunately only one can win, but I think you need to remember that you have all won the respect of your peers to get you to this point.

This years nominees are:

Brian Lacy
Nannette Bringard
Sandy McConnell
Gail McLeish
Paul Beretz
Jocelyn Chavez

This year’s winner has served as an officer for our industry credit groups and CMA’s Northern California Board in many areas.

He has worked on ancers.com and CMA’s encyclopedia of Credit.  He is a CICE (Certified International Credit Executive), he has written over 25 articles for various Credit related magazines, published 2 books and of coarse teaches Business Credit.

It is with great pleasure that I present the CMA Credit Executive of the Year – Paul Beretz."

More new members in April 2008

CMA would like to welcome the following new members:

• Long Building Technologies, Inc. - Las Vegas, NV
• Marjorie Snow Landscape - Las Vegas NV
• TS Painting & Drywall - Las Vegas, NV. Referred by Linda Rodriquez at Desert Plumbing

CMA New Member - SelectBuild

From their website: SelectBuild, a wholly owned subsidiary of Building Materials Holding Corporation (NYSE: BLG), currently serves 19 of the 25 largest homebuilders in the United States, employs more than 12,000 people and is engaged in construction on single family, multifamily, and light commercial projects, currently generating revenue on a current annualized run rate approaching $1.3 billion.

SelectBuild's mission is to construct the highest quality projects for our customers using the most efficient process. By integrating select trades and supply chain activities, builder efficiency and product quality are optimized, and a new service segment of the industry is created. SelectBuild's services are comprehensive, providing a single point of contact for its homebuilder clients, while highlighting operational efficiency, quality control, risk management and superior customer service.

CMA New Member - Craft Construction

From their website: Since J. Nowak opened Craft Construction in 1997, his vision of “a company which provides full service construction with highly qualified craftsmen” has stayed true. While he himself has over thirty years of construction experience, all key personnel have had years, if not decades, in perfecting their skills. Craft Construction Company’s reputation and clientele has grown exponentially since 1997. The repeat business we receive is one our proudest achievements. Clients really appreciate the fact that no matter where in the continental United States a project is awarded, they can expect the same level of craftsmanship from Craft Construction Company.

CMA New Member - Atrium Companies Inc.

From their website: Atrium Companies is the largest manufacturer of vinyl and aluminum windows and patio doors in North America. We invite you to browse our site in order to learn more about our products, services and culture.

In addition to our flagship Atrium Windows and Doors brand, we are also proud to offer these distinguished product brands in select markets across the country.

Referred to CMA by Bev Daniels at Integrity Window. Send in your member referrals, click here.

Structuring LCs to Protect Your Company

"The letter of credit (LC) is an obligation that banks have to your company if certain conditions set forth in the LC are met," said Robert Mercer, Esq. of law firm Powell Goldstein, LLP. "This is an attempt to isolate your company from the customer."

Mercer, a partner at Powell Goldstein's Atlanta office who practices in its Bankruptcy & Financial Restructuring Group, discussed LCs and the best ways to structure them at a recent NACM teleconference entitled "Structuring Letters of Credit That Won't Leave You Stranded in a Customer Bankruptcy." Over the course of his presentation, Mercer outlined common stipulations that creditors should include as well as some that they should avoid when drafting their LCs.

Most importantly, Mercer noted, a vendor using an LC should be sure to include a Bankruptcy trigger in the LC, rather than just in the supply contract. Since the revisions made to the bankruptcy Code in the 1970s, provisions in contracts that attempt to construe a customer bankruptcy as a form of default have been unenforceable, meaning that when a customer files, the vendor is left open to preferences and placed in the running with the rest of the customer's unsecured creditors. Still, these provisions are used very frequently. "You see them in many commercial documents," said Mercer. "Put in the LC that, if the customer files bankruptcy, it's a basis under which your company can draw on the LC." In this way, when a customer files bankruptcy, under the terms of the LC, the bank is still obligated to pay your company.

"This is a really simple fix," he added. "That's a provision you want in the LC."

Mercer also discussed the importance of removing as many conditions as possible from the LC, including provisions that require a vendor to give a bank or the customer a few days notice before drawing on the LC or provisions that require the vendor to seek consent before drawing.

For more information on NACM's teleconferences, or to register, click here.

Jacob Barron, NACM staff writer

Terry Harries, Outgoing Chairman Video Message

Terry Harries, CMA's 2007-2008 Board Chairman, making his outgoing speech at CMA's Annual Meeting.

Terry Harries, CMA Outgoing Chairman from CMA Business Credit Services on Vimeo.