How To Use
This review list is provided to inform you about the document in question and assist you in its preparation. This is a standard straightforward lease agreement. Be sure to file the appropriate local, county, and state liens (UCC forms) against the equipment within the locals where the Equipment is kept by Lessee, according to this Agreement.
This not only perfects your interest in the property but also warns off other creditors of Lessee, so they do not attempt to attach the property. If they do, you will have a senior position. Be sure to establish an end of lease purchase price in Exhibit 1. Do likewise for a renewal period of the Equipment. GE Capital, for example, has found releasing Equipment very lucrative because the proper paperwork is in place and continuation is quite simply because, by the end of the first lease period, most equipment is worth more than its then supposed capital price.
Therefore, you may be well advised from a business perspective to encourage releasing for a reduced price at the end of the lease. In this instance, inertia is on your side since Lessee “has” the Equipment and it is always easier to continue as is rather than getting new equipment, and so on.
- Make multiple copies so you have several sets for your various files, including your corporate records.
- Be sure to file liens, as appropriate, as described above against your equipment in the appropriate jurisdictions.
This Equipment Lease (“Lease”) is made effective as of _____________ (Date), by and between _______________________ (“Lessor”) and _______________________ (“Lessee”).
The agreement of the parties is as follows:
1. Equipment subject to Lease.
Lessor shall lease the Equipment (“Equipment”) listed in Exhibit 1.
23. Rights upon Default.
In addition to any other rights afforded the Lessor by law, if the Lessee is in default under this Lease, without notice to or demand on the Lessee, the Lessor may take possession of the equipment as provided by law, deduct the costs of recovery (including attorney fees and legal costs), repair, and related costs, and hold the Lessee responsible for any deficiency. The rights and remedies of the Lessor provided by law and this Agreement shall be cumulative in nature. Lessor shall be obligated to re-lease the equipment, or otherwise mitigate the damages from the default, only as required by law.
Exhibit 1: Equipment Schedule
Lease End Purchase Price: (Should be included; very important).