Additive Manufacturing Equipment Financing
Documenting The Lease
A complete lease begins with a Master Lease Agreement, which lays out the terms and conditions that apply to all lease transactions. Each transaction is summarized on a Schedule that identifies the specifics of the particular transaction. Depending on the nature of the transaction, other documents may be necessary and could include an Acceptance Certificate, Landlord's Waiver, Secured Lender's Waiver, Certificate Of Incumbency , Evidence Of Insurance, and Lessee's Guaranty.
NCP leases consist of more than one document. The master lease agreement sets out the terms and conditions and serves as the infrastructure of the lessor-lessee relationship. These expenses must be borne by the lessee.
The equipment schedule incorporates the terms and conditions of the master lease agreement and identifies the specifics associated with a particular asset, including the term of the lease, the payment amount and the end-of-lease options.
The acceptance certificate is the lessee's acknowledgement that the equipment has been delivered and accepted within the terms of the lease. This acknowledgement marks the inception of the lease term and ties the equipment to the Master Lease and the Schedule.
The landlord's waiver is a document that makes clear that any leased equipment is equipment owned by the lessor, even if the equipment is installed in a way that secures it to the structure. This document addresses a general rule in law that can give the owner of a building permanent rights to things affixed to that building simply because the fixtures are attached to a structure. The lessee's landlord must waive any potential claim to the leased equipment.
The secured lender's waiver is a document signed by any outside party (usually a bank) that has a general first lien on the lessee's assets. Basically, it is an acknowledgement by a lender other than the lessor that the leased asset is not the lessee's asset and not the lender's asset and that rights in the equipment are not subject to any claims made against the lessee except by the lessor.
The certificate of insurance is a declaration by the lessee's insurance company that the leased equipment is properly and fully insured. The risks covered by the insurance protect the lessor from damage to the equipment as well as damage that might be caused to people or to property by the equipment. A single insurance policy or coverage under a more comprehensive policy held and paid for by the lessee protects both the lessee and the lessor.
2055 Reading Road, Suite 240
Cincinnati, Ohio 45202