What are the terms and conditions of an international financial lease agreement?
(1) Equipment definition terms
Since the leased equipment under the agreement and the purchased equipment under the supply agreement are the same subject matter, the equipment is often not yet specified when the lease agreement is signed; Therefore, this clause usually leads to the equipment supply agreement, defining and summarizing the name, specification, model, quantity, technical performance, delivery location, use location, supplier's name and address of the leased equipment; in most cases, the agreement also includes A separate attachment to the schedule must be provided to describe the characteristics of the leased equipment and shall be made an integral part of the lease agreement. This clause involves more engineering and technical aspects, and is actually determined by the negotiation between the lessee and the supplier. (2) Purchase and delivery of rental equipment
This clause must usually be clearly related to the equipment The following issues related to the supply agreement: (1) The lessee selects the rental equipment and suppliers based only on its own needs and judgment, rather than relying on the lessor’s introduction and instructions. The lessor’s performance of the equipment , quality and technical indicators are not responsible for any guarantee. (2) The lessee knows and confirms that there is no agency relationship or joint relationship between the lessor and the supplier; this commitment is intended to exclude any agency liability or joint liability between the lessor and the supplier. (3) Regardless of who signs the supply agreement, the lessor will be ultimately responsible for payment of the equipment payment and financing burden, and the lessor will retain title to the leased equipment. (4) According to the supply agreement, the delivery time, delivery location and delivery method of the leased equipment are specified; under normal circumstances, the leased equipment is delivered directly to the lessee by the supplier and is responsible for installation, while the lessee is responsible for Go through customs declaration, delivery and acceptance. After the acceptance is completed, the lessee must issue an acceptance certificate to the supplier and lessor. (5) This clause usually also stipulates that once the lease agreement is signed and becomes effective, the contents of the supply agreement and the lease agreement regarding the leased equipment cannot be changed.
(3) Lease term
This clause must stipulate the lease term and lease start date. The lease term refers to the effective period during which the lessor leases the leased equipment to the lessee and collects rent. This term is usually based on the durability of the leased equipment and the lessee's cash The flow situation is determined, but the laws and accounting systems of many countries require that this period should cover most of the service life of the leased equipment, and prohibit the lessor from recovering the entire investment in a short period of time; therefore, in a tax-saving lease, the parties usually rent the entire The term is divided into two parts: the basic lease term and the renewal lease term in advance.
The lease start date refers to the date when the lease term and rent start to be calculated. In international financial leasing In practice, the parties usually negotiate and decide on one of the date when the lessor issuance of the certificate, the date when the supplier obtains the bill of lading, the date when the lessor pays the payment, or the date when the supplier delivers the goods.
(4) Rent terms
The following basic matters should be clarified in the rent terms: (1) Lease rate, the total rent during the lease period is usually Including purchase payment, freight, transportation insurance, leasing costs, etc.; however, in terms of rent, the leasing agreement usually adopts a fixed rent method, and does not ask about the efficiency of the rental equipment. In practice, it is often called the "lease rate". It is even called "lease rate". The determination of the lease rate must not only consider the total rent and the lease term, but also factors such as market interest rate fluctuations and risk rates. In some cases, the rent can also adopt a floating fee Rate form or installment rate form, and adjust it according to the agreed period. (2) Payment method and payment date. This clause should stipulate the rent payment cycle, payment date and uneven payment method. Under normal circumstances, rent payment Annual rent is adopted, and the payment date is usually within the agreed period at the beginning of each year; in some cases, the parties may agree on non-equal payments based on the production efficiency of the leased equipment, such as the cumulative rent amount every year. (3) Pricing currency and payment currency , this clause should stipulate the denomination currency, payment currency, payment account and exchange rate risk burden of the rent; under normal circumstances, the lessor does not bear the exchange rate risk and attributes it to the lessee. (4) Rent deduction matters, In this clause, the lessor usually requires that its rent collection be exempted from withholding taxes, fees and reasons for non-payment in the country where the lessee is located. In addition, under the rent clause, the parties are often required to defer and defer payment on non-business days. Make an agreement on penalty interest and other matters.
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