Lawyer Mr. David Cooke of Mello, Hollis, Jones & Martin will speak on Bermuda's role in cross-border equipment financing at the fifth annual FSC and Cross Border Leasing Conference which takes place tomorrow and on Thursday.

FSCs are corporate structures which are developed for the financing of large ticket items of equipment, including aircraft, railcars and power generators.

The structures are driven by the preferential tax treatment that a jurisdiction has obtained from specific countries. Bermuda has been an approved jurisdiction since 1988.

A Bermuda company would be set up to buy and own equipment, such as an aircraft, and would then lease it to an airline or some other company for their ultimate use. The Bermuda company would then use the lease payments to pay back the loan used to take buy the equipment.

Bermuda derives benefits on several fronts, such as company fees, business for lawyers, accountants and the banks. And there are also tourism implications, as often the foreign principles visit Bermuda to strike the deal, sign contracts and conduct other related business.

Bermuda has emerged unchallenged in the industry in this relatively new field, although competition was initially mounted by two Caribbean countries.

Ownership FSCs are now done almost exclusively in Bermuda and that is why this year the conference will spend some time concentrating on the Bermuda market.

No other non-US jurisdictions will be making a presentation.

Ussues Mr. Cooke will address include insolvency, why Bermuda should be a preferred domicile and the entities that are available here.

With the improving US economy, activity in this sector is expecetd to increase.

Those who attend include aircraft finance specialists, commercial and investment bankers, airline executives, financiers, aircraft and other major equipment manufacturers, tax professionals, consultants and others.