CLFP EXAM - Equipment Lease and Financing
Documentation | 100% Correct Answers | Verified
| Latest 2024 Version
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 default
What 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
What is a Master Lease Agreement? - ✔✔An umbrella document for a series of lease transactions and
provides a template that simplifies the doc process for each transaction. Typically provides a schedule to
be attached to the master for each transaction
What is a Plain Language Agreement? - ✔✔A lease that has been edited for the purposes of avoiding
"legalese", making it shorter and more easily understood presenting in easy-to-understand format.
What are Indemnification or Parties? - ✔✔A key element of a lease agreement that identifies all parties
in order to create a legally binding contract. Must get exact name of entities (including punctuation).
Also helps assure proper UCC filing.
What is Identification and Address of Vendor/Suppliers? - ✔✔A key element of a lease agreement that
identifies suppliers and helps in creating statutory finance lease status. All names and addresses of
Documentation | 100% Correct Answers | Verified
| Latest 2024 Version
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 default
What 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
What is a Master Lease Agreement? - ✔✔An umbrella document for a series of lease transactions and
provides a template that simplifies the doc process for each transaction. Typically provides a schedule to
be attached to the master for each transaction
What is a Plain Language Agreement? - ✔✔A lease that has been edited for the purposes of avoiding
"legalese", making it shorter and more easily understood presenting in easy-to-understand format.
What are Indemnification or Parties? - ✔✔A key element of a lease agreement that identifies all parties
in order to create a legally binding contract. Must get exact name of entities (including punctuation).
Also helps assure proper UCC filing.
What is Identification and Address of Vendor/Suppliers? - ✔✔A key element of a lease agreement that
identifies suppliers and helps in creating statutory finance lease status. All names and addresses of
