CLFP LEASE FINANCE PROFESSIONAL
REVIEW 2026 QUESTIONS WITH
SOLUTIONS TESTED QUESTIONS.
⫸ Corporate Resolution. Answer: Demonstrates the lessee has
appropriately authorized the signers to validly bind the corporation to
the lease.
⫸ Real Estate Waiver. Answer: The acknowledgement by an owner
(landlord) or mortgagee of real property that the leased equipment
belongs to the lessor and they can remove it. (In agricultural leasing, it's
referred to as a Severance Agreement/Easement)
⫸ Fixture Filing. Answer: Similar to a UCC financing statement, filed
in real property records to provide notice to third parties of the lessor's
ownership interest in the equipment
⫸ UCC Filings. Answer: Filed in the Office of the SOS where the lessee
is incorporated or organized. Preserve priority lien rights of a creditor
and notice to inquiring parties of a lessor or secured party's interest in
the equipment
, ⫸ Cross Default Agreement. Answer: This agreement provides that if a
creditor/lessor has multiple agreements with a debtor/lessee and one
goes into default, they all become in default.
⫸ Purchase Order. Answer: Issued by a lessor indicating the lessor
intends to purchase the equipment from the vendor upon fulfillment of
certain conditions by the vendor and the lessee
⫸ Invoice. Answer: The vendor of the equipment issues invoices to the
lessor seeking payment for the equipment. The invoice also
demonstrates passage of title from the vendor to the lessor.
⫸ Advance Funding/Pre-Funding Agreement aka "Pre-Delivery Hell or
High-Water Agreement". Answer: Describe terms and conditions under
which a lessor may advance part or all of the equipment cost to a vendor
before full delivery and acceptance of all the equipment by the lessee.
⫸ Purchase Option. Answer: Deals with whether, how, and for what
consideration a lessee may be able to acquire ownership of the
equipment at the end of the lease term. The manner in which this is done
and the price set can significantly impact characterization of the lease as
a true lease or lease intended as security. (The language is sometimes
contained in a lease and sometimes is a separate agreement).
⫸ Identification of Parties. Answer: Parties in a lease agreement must be
identified by their correct legal names to create legally binding contracts.
REVIEW 2026 QUESTIONS WITH
SOLUTIONS TESTED QUESTIONS.
⫸ Corporate Resolution. Answer: Demonstrates the lessee has
appropriately authorized the signers to validly bind the corporation to
the lease.
⫸ Real Estate Waiver. Answer: The acknowledgement by an owner
(landlord) or mortgagee of real property that the leased equipment
belongs to the lessor and they can remove it. (In agricultural leasing, it's
referred to as a Severance Agreement/Easement)
⫸ Fixture Filing. Answer: Similar to a UCC financing statement, filed
in real property records to provide notice to third parties of the lessor's
ownership interest in the equipment
⫸ UCC Filings. Answer: Filed in the Office of the SOS where the lessee
is incorporated or organized. Preserve priority lien rights of a creditor
and notice to inquiring parties of a lessor or secured party's interest in
the equipment
, ⫸ Cross Default Agreement. Answer: This agreement provides that if a
creditor/lessor has multiple agreements with a debtor/lessee and one
goes into default, they all become in default.
⫸ Purchase Order. Answer: Issued by a lessor indicating the lessor
intends to purchase the equipment from the vendor upon fulfillment of
certain conditions by the vendor and the lessee
⫸ Invoice. Answer: The vendor of the equipment issues invoices to the
lessor seeking payment for the equipment. The invoice also
demonstrates passage of title from the vendor to the lessor.
⫸ Advance Funding/Pre-Funding Agreement aka "Pre-Delivery Hell or
High-Water Agreement". Answer: Describe terms and conditions under
which a lessor may advance part or all of the equipment cost to a vendor
before full delivery and acceptance of all the equipment by the lessee.
⫸ Purchase Option. Answer: Deals with whether, how, and for what
consideration a lessee may be able to acquire ownership of the
equipment at the end of the lease term. The manner in which this is done
and the price set can significantly impact characterization of the lease as
a true lease or lease intended as security. (The language is sometimes
contained in a lease and sometimes is a separate agreement).
⫸ Identification of Parties. Answer: Parties in a lease agreement must be
identified by their correct legal names to create legally binding contracts.
