establishing firms expressly for the purpose of financing major items such as aircraft.

Mr. Cooke, of Mello, Hollis, Jones and Martin, was speaking at the fifth annual FSC (Foreign Sales Corporation) and Cross Border Leasing Conference in New York.

Bermuda is the dominant player in ownership FSCs, which consist of companies set up on the Island by groups of people who wish to purchase costly items including the likes of aircraft, railcars and power generators.

The corporate entities are set up here because of the preferential tax treatment that Bermuda obtained in 1988 from specific countries. The Bermuda company buys and owns such big ticket items and leases them to the end users such as airlines.

Mr. Cooke explained the way companies were formed in Bermuda, highlighting some of the principle considerations which arise when Bermuda is used as a jurisdiction through which to structure such financing transactions.

He told the conference he wished to provide a starting point for anyone considering the use of Bermuda entities.

Mr. Cooke said his participation at the conference could mean even more interest in Bermuda, which at the moment is the major domicile for this type of business.

In his address, he explained the incorporation procedure and legal requirements for Bermuda companies and discussed related matters.