Exam (elaborations)
CLFP EXAM - Equipment Lease and Financing Documentation Flashcards
- Course
- Institution
CLFP EXAM - Equipment Lease and Financing Documentation Flashcards
[Show more]
Seller
Follow
Content preview
10/5/24, 7:56 CLFP EXAM - Equipment Lease and Financing Documentation Flashcards |AM Quizlet
Scheduled maintenance: October 5, 2024 from 07:00 AM to
09:00 AM
CLFP EXAM - Equipment Lease and Financing
Documentation
4.0 (1 review)
Students also studied Study guides
B s
c
0 terms 34 terms 11 terms 40
e
t
Preview Preview Preview e
Terms in this set (77)
A lease is a basic document by which a lessor agrees to provide equipment or
What is a Lease a document?
other personal property or rights to a lessees in return for rental payments.
Also referred to a "schedules" are used if the description of lease property is too
What are Lease Exhibits document? lengthy to fit into the space allotted on the lease. Often wise to have lessee initial all
exhibits.
Document signed by lessee indicating the lessee has unconditionally accepted
What is a Delivery & Acceptance (D&A)
the equipment. Ideally the date of this document should be subsequent to the
document?
date of the lease. Also good practice to confirm via confirmation call
Document containing all credit support provided by third parties that are not
What are Guaranties?
the primary lessees.
Document certifying by the corporate secretary or other officer that the person
signing is so authorized. Often easier that reviewing articles of incorporation
What are Corporate Resolutions?
and bylaws. Documents in which an officer is authorizing themselves, notary is
recommended.
Document acknowledges an owner or mortgagee or real property that the leased
What are Real Estate Waivers documents?
equipment belongs to the Lessor and can be removed.
Similar to UCC filings, documents filed in real property records to provide notice to
What are Fixture Filings documents?
third parties of the lessor's ownership interest in the equipment.
Papers filed in teh office of SOS whereas the lessee is incorporated preserving
What are UCC filings?
priority lien rights of the creditor and notice to inquiring parties.
What are Cross Default Agreements Provides that creditor/lessor have multiple agreements with debtor/lessor. If one
documents? defaults, they all default
Issued by lessor indicating lessor intends to purchase the Equipment from
What is Purchase Order documents?
the vendor upon fulfillment of certain conditions by vendor and lessee
A document issued by a vendor to the lessor seeking payment for
What is an Invoice Document?
equipment. Represents passage of title from vendor to lessor.
https://quizlet.com/204018471/clfp-exam-equipment-lease-and-financing- 1
, 10/5/24, 7:56 CLFP EXAM - Equipment Lease and Financing Documentation Flashcards |
AM Quizlet
Also referred to as a "pre-delivery hell or high-water agreement", describes terms
What is an Advance/Prefund Document? and conditions under which the lessor may advance part of ll of the Equipment
cost to a vendor prior to full D&A of the equipment.
A document that describes how and for what consideration a lessee may be able
What is a Purchase Option document?
to a acquire ownership of Equipment at the end of the lease term.
What is a Standard "One Off" Lease A lease that governs only one transaction and specifically describes the subject
Agreement? equipment and accompanied by all additional docuemnts
An umbrella document for a series of lease transactions and provides a template
What is a Master Lease Agreement? that simplifies the doc process for each transaction. Typically provides a schedule to
be attached to the master for each transaction
A lease that has been edited for the purposes of avoiding "legalese", making
What is a Plain Language Agreement?
it shorter and more easily understood presenting in easy-to-understand
format.
A key element of a lease agreement that identifies all parties in order to create
What are Indemnification or Parties? a legally binding contract. Must get exact name of entities (including
punctuation). Also helps assure proper UCC filing.
A key element of a lease agreement that identifies suppliers and helps in creating
What is Identification and Address of statutory finance lease status. All names and addresses of suppliers should be
Vendor/Suppliers? provided - often via an Exhibit to avoid claims that vendor and lessor are
working together.
A key element of a lease agreement that specifies the equipment location and
assures that the lessor knows where to find the equipment and that taxes are paid
What is Equipment Location?
properly. Also common to add provision prohibiting equipment location from being
changed without Lessor consent.
A key element of a lease agreement that set forth the correct amount, number
What are Terms?
an frequency of lease payments. Tax amount or "plus tax" must be listed
separately.
1) A key element of a lease agreement that states lessee is in fact paying rent to
the lessor in return for possession and use of Equipment
What is Purpose/Intent of Agreement?
2.) parties intend transaction to be a lease and not a loan (true
lease) 3.) all provisions should be interpreted to give effect to this
intention
A key element of a lease agreement in which the lessee represents that it will
What is Acceptance of Equipment by
accept the Equipment when fully delivered and operational, after which the lease is
Lessee?
in full effect.
1). A key element of a lease agreement that provides the lessee the "implied
warranties" of the supplier/vendor and gives the purchaser/lessee with remedies
What is Disclaimer of Warranties? if the equipment or other goods are defective unless the seller or lessor expressly
disclaims such warranties.
2. Must be conspicuous - good idea to have lessee initial this language
A key element of a lease agreement Disclaimer of Warranties section that
states; 1.) lessee duty to make payments regardless of equipment issues;
What is a "as-is where-is" language? 2.) claims against the equipment are made against the
supplier 3.) No offset against rental payments
4.) As long as not in default, lessor assigns lessee benefits of warranty
A key element of a lease agreement that recites compliance with the process need
With respect to documentation, what is an
to obtain "statutory finance lease treatment" i.e. identify which vendors can be
Article 2A provision?
contacted for warranty information.
https://quizlet.com/204018471/clfp-exam-equipment-lease-and-financing- 2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mbitheeunice2015. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75057 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now