CLFP EXAM - Equipment Lease and Financing Documentation Questions With Correct Answers Already Passed!!

What is a Lease a document? - A lease is a basic document by which a lessor agrees to provide equipment or other personal property or rights to a lessees in return for rental payments. What are Lease Exhibits document? - Also referred to a "schedules" are used if the description of lease property is too lengthy to fit into the space allotted on the lease. Often wise to have lessee initial all exhibits. What is a Delivery & Acceptance (D&A) document? -Document signed by lessee indicating the lessee has unconditionally accepted the equipment. Ideally the date of this document should be subsequent to the date of the lease. Also good practice to confirm via confirmation call What are Guaranties? - Document containing all credit support provided by third parties that are not the primary lessees. What are Corporate Resolutions? - Document certifying by the corporate secretary or other officer that the person signing is so authorized. Often easier that reviewing articles of incorporation and bylaws. Documents in which an officer is authorizing themselves, notary is recommended. What are Real Estate Waivers documents? - Document acknowledges an owner or mortgagee or real property that the leased equipment belongs to the Lessor and can be removed. What are Fixture Filings documents? - Similar to UCC filings, documents filed in real property records to provide notice to third parties of the lessor's ownership interest in the equipment. What are UCC filings? - Papers filed in teh office of SOS whereas the lessee is incorporated preserving priority lien rights of the creditor and notice to inquiring parties. What are Cross Default Agreements documents? - Provides that creditor/lessor have multiple agreements with debtor/lessor. If one defaults, they all defaultWhat is Purchase Order documents? - Issued by lessor indicating lessor intends to purchase the Equipment from the vendor upon fulfillment of certain conditions by vendor and lessee What is an Invoice Document? - A document issued by a vendor to the lessor seeking payment for equipment. Represents passage of title from vendor to lessor. What is an Advance/Prefund Document? - Also referred to as a "pre-delivery hell or high-water agreement", describes terms 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. What is a Purchase Option document? - A document that describes how and for what consideration a lessee may be able to a acquire ownership of Equipment at the end of the lease term. What is a Standard "One Off" Lease Agreement? - A lease that governs only one transaction and specifically describes the subject equipment and accompanied by all additional docuemnts