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Master Efa Agreement

The District Court of Appeals ruled that the lease was a “real lease” and that the landlord could be held liable under Florida`s doctrine of dangerous instrumentality. In support of these findings, the Tribunal found that the agreement was called the Commercial Vehicle Lease Agreement and that the document indicated that the owner owned the truck. Other facts that led to the Tribunal`s conclusion included the fact that (1) interest on monthly payments was not explicitly mentioned; (2) the lessor could not cede his interest in the lease without the written permission of the lessor, but the lessor could sell his shares as he pleased; (3) the lease required liability insurance from the policyholder; (4) The Tenant was required to install signs, upon request, indicating that the owner was in possession of the truck; and (5) the tenant was required to return the truck in good working order if it had not been acquired in accordance with the rental conditions. CONDITIONAL SALES CONTRACT An agreement to acquire an asset under which the lessor is considered the owner of the asset for federal tax purposes. This allows the tenant to obtain the tax benefits of the property, such as depreciation, but the tenant will not be the free and clear owner of the assets until all the terms of the agreement are met. Because the EEA does not contain documents specifically identified as “sola change” or “security agreements,” many homeowners who are subject to internal restrictions prohibiting traditional borrowing may enter into an EFA transaction. It remains different from traditional credit documents because it is much more “equipment-oriented” like its ancestor for equipment leasing. The absence of a change in text eliminates the additional paper and the EFA can be largely modeled on a set of existing leases in order to obtain known pricing guidelines, document modeling and other details. KAPITALLEASE From a financial reporting perspective, a lease agreement that has the characteristics of a sales contract and also meets certain criteria set out in Statement 13 of the Financial Accounting Standards Board (FASB 13). Such a leasing contract must be recognized as an asset and as a balance sheet commitment. At first glance, it seems fairly easy to document an EFA transaction if you use an existing equipment rental form to document an EFA transaction. The profitability of an EFA should be similar to that of a guarantee lease: full payment with implied interest and either a mandatory balloon payment or no additional payment at the end, the borrower/tenant who owns the equipment being subject to a security rate for the lender/lender. However, as many practitioners have found, it is more complicated to lend credit to a client`s standard equipment and to enter into an equipment financing agreement than it appears.