Sales and Operations

 Commercial Equipment Leasing Seminar

Presented by

Mr. Terry Winders CLP

President – Winders Consulting Co., Inc.

Day One:             Morning: 8:30AM

                I               What is a lease?

                                                1. Ownership  

2. Use vs. Title vs. Possession

3. Loan vs. Lease vs. Rent

                II             Language of Leasing Terms

                III            Review of Rules and Regulations

1.       Federal Income Tax Rules

a.       Income vs. expense

b.      True Lease vs. CSC

c.       55-540

                                                                                                                           i.      Court changes

d.      75-21

e.      Impact of RR179

f.        RR467

2.       Accounting Requirements

a.       Lessee Classification

                                                                                                                           i.      Capital AB

                                                                                                                         ii.      Capital CD

                                                                                                                        iii.      Operating

3.       Legal Definition

a.       Article 2

b.      Revised Article 9

c.       Article 2A

Lunch time: 12:00 – 1:30

Day One:             Afternoon 1:30 PM

III            Structuring/Pricing

1.       MISF, IRR, Pricing Programs

2.       True income, Tax/Accounting

3.       Different lease margins

4.       Types of Leases and pricing issues

5.       Structured Leases, cash flow

6.       End of Lease options/tax and book effect

a.       Return

b.      Renewal

c.       Evergreen

d.      Wintergreen

e.      Lowered rent

f.        Purchase

                                                                                                                                       i.      Bargain Option

                                                                                                                                     ii.      FMV

                                                                                                                                    iii.      Fixed Price Purchase Option (FPO)

                                                                                                                                   iv.      Burdensome buyout

                                                                                                                                     v.      PUT

g.       Trade up

h.      EBO

i.         Early termination

j.        Assumptions

k.       Walk Away

l.         Closed end/open end

m.    Extensions

7.       Fees

8.       Grace Periods

9.       Uneven Rents

10.   Lease-Buy Analysis

a.       Cash flow

b.      Term

c.       Present Value Discount

11.   Sale Lease Back

a.       Legal requirements

b.      Tax requirements

c.       Accounting impact

Day Two:             Morning: 8:30 AM

                IV            Reasons to lease

                V             Questions to ask lessee

                VI            Vendor leasing

                VII          Vendor programs

                VIII          Credit Enhancements

                                Cross defaults

                                Cross Collateralization

                                Security deposits

                                Prepaid Rent

                                Additional Collateral

                                Lease Indentures

                                Covenants

                                Deposits

                                Letter of Credit

Day Two:             Afternoon:

                VIII         Documentation issues

                                                The Lease Agreement as a Contract

                                                Article 9 vs. Article 2A

Credit support and due diligence documentation

                                                Guarantees, Letters of credit

                                                Joint and several Liability

                                                Deposit accounts

                                                Advance rents

                                                Legal opinions

                                                Officer certificates

                                                Insurance

                                                Special Lease provisions

                                                Riders and Clauses

                                                Return language

                                                Renewal language

                                                Inspection requirements

                                                Evergreen and Wintergreen Provisions

                                                Bundled services

                                                                Maintenance

                                                                Licenses

                                                                Asset Management

                                UCC Issues in Deal Structuring and Financing

                                Default/Bankruptcy issues

                                                Lessor’s rights under the Lease

Statutory Law

Bankruptcy Code

Collection strategies

Refundable rents

Day Three:          Morning: 8:30 AM

                                                Documenting the lease

                                                                Acquisition of the equipment

                                                                Purchase Orders

                                                                Assignment agreements

                                                                3 party assignments

                                                                Bills of Sale

                                                                Lessee acceptance documentation

                                                                Lender Documentation

                                                                                Loans

                                                                                Securitization

                                                                Asset substitution

                                                                Guarantee’s

                                                                                Corporate

                                                                                Personal/Reg. M

                                                                Mechanic’s Liens

                                                Protecting Residuals

                                                                Net lease provisions

                                                                Return conditions

                                                                RVI insurance

                                                                Return inspection

                                                                Warranties

Taxes

                Income tax

                                                                Sales Tax

                                                                Property Tax

                                                                Use Taxes

                                                                Exempt Use Property

                                Questions and Answer Period

Voluntary 65 Question Test

12:00 Noon          Seminar complete