CLFP - CLASS REVIEW STUDY 2024 EXAM
TEST BANK WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|NEWEST|GUARANTEED
PASS |LATEST UPDATE
What if you forget to file a Landlord Waiver and you need to access your equipment in default?
Do your best to negotiate directly with the owner. They may understand and cooperate.
When is a Real Estate Waiver required?
When equipment is secured/fastened/attached to real property or building.
Where is Fixture Filling Recorded?
- local county recorder of real property
- file as soon as possible < 20 days
What are the most important Acts of Default?
- failure to pay
- failure to pay other sums due (i.e. insurance)
- failure to perform act or obligation under lease
What is CFLL?
- CA Lenders License
- any person makes loans - personal or commercial
What is UCC Article 10?
CA version of UCC Article 2A
What are some common methods of lessor financing?
1|Page
,- self funded
- broker
- discounting
- debt/equity
- securitization
What are advantages of Brokering?
- requires little/no capital
- easiest
- no servicing required
What are disadvantages of brokering?
- limited profit
- lacks control
- loss long term relationship to funding source
Who owns equipment in a Discounting scenario?
Lessor
What are advantages of Discounting?
- lower COF
- flexibility
- brand identity
- increased revenue
- retains customer
What are disadvantages of Discounting?
-significant reps and warranties
- retains some risk (i.e. residual)
- requires working capital
- potentially less upfront profit.
What are advantages of Equity/Debt funding?
- retain long term economic benefit
- control - underwriting, funding etc
What are disadvantages of Equity/Debt funding?
- risk
- limited capital
- large back-office requirements
What is Asset Securitization?
2|Page
, Aggregation of similar types of assets (leases) into a legal structure
- Assets used as collateral to issue bond/note
What are advantages of Securitization?
- low cost of funds
- potential off balance sheet (bk remote company)
- access to capital markets
What are disadvantages of Securitization?
- requires expertise
- huge cost to conduct
- time consuming
- need uniformity in assets
- complexity in accounting
How are Partnership Tax Liabilities treated?
income or losses of partnership are divided among owners.
Lessor can only pursue principal with respect to which types of entities?
- sole proprietor
- general partner
What is the only entity not taxed on a personal basis?
C Corp
How many owners are required in a LLC?
one (1)
What is the purpose of Credit Scoring?
- consistent decisions
- efficient process
- monitor costs
What are ways to enhance credit?
- SD
- Adv. Pymts
- Shorten term
- Add'l pg
- vendor guaranty
- add'l collateral
- fees
- vendor discounts
- co-lessee
3|Page
TEST BANK WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|NEWEST|GUARANTEED
PASS |LATEST UPDATE
What if you forget to file a Landlord Waiver and you need to access your equipment in default?
Do your best to negotiate directly with the owner. They may understand and cooperate.
When is a Real Estate Waiver required?
When equipment is secured/fastened/attached to real property or building.
Where is Fixture Filling Recorded?
- local county recorder of real property
- file as soon as possible < 20 days
What are the most important Acts of Default?
- failure to pay
- failure to pay other sums due (i.e. insurance)
- failure to perform act or obligation under lease
What is CFLL?
- CA Lenders License
- any person makes loans - personal or commercial
What is UCC Article 10?
CA version of UCC Article 2A
What are some common methods of lessor financing?
1|Page
,- self funded
- broker
- discounting
- debt/equity
- securitization
What are advantages of Brokering?
- requires little/no capital
- easiest
- no servicing required
What are disadvantages of brokering?
- limited profit
- lacks control
- loss long term relationship to funding source
Who owns equipment in a Discounting scenario?
Lessor
What are advantages of Discounting?
- lower COF
- flexibility
- brand identity
- increased revenue
- retains customer
What are disadvantages of Discounting?
-significant reps and warranties
- retains some risk (i.e. residual)
- requires working capital
- potentially less upfront profit.
What are advantages of Equity/Debt funding?
- retain long term economic benefit
- control - underwriting, funding etc
What are disadvantages of Equity/Debt funding?
- risk
- limited capital
- large back-office requirements
What is Asset Securitization?
2|Page
, Aggregation of similar types of assets (leases) into a legal structure
- Assets used as collateral to issue bond/note
What are advantages of Securitization?
- low cost of funds
- potential off balance sheet (bk remote company)
- access to capital markets
What are disadvantages of Securitization?
- requires expertise
- huge cost to conduct
- time consuming
- need uniformity in assets
- complexity in accounting
How are Partnership Tax Liabilities treated?
income or losses of partnership are divided among owners.
Lessor can only pursue principal with respect to which types of entities?
- sole proprietor
- general partner
What is the only entity not taxed on a personal basis?
C Corp
How many owners are required in a LLC?
one (1)
What is the purpose of Credit Scoring?
- consistent decisions
- efficient process
- monitor costs
What are ways to enhance credit?
- SD
- Adv. Pymts
- Shorten term
- Add'l pg
- vendor guaranty
- add'l collateral
- fees
- vendor discounts
- co-lessee
3|Page
