Banking & Finance

What is a spread flex?

The underwriting spread is the difference between the underwriting fee received by lead underwriters for the initial underwriting of the total financing amount and the amount of th...


What is a servicing agreement?

A servicing agreement is a contract between a servicer and a special purpose vehicle (SPV) or an assignee under which the servicer is responsible for administering a lease and acti...


What is a service lease?

A service lease is an arrangement where the owner and lessor of the equipment maintains and services the asset and allows the asset operator operational flexibility by permitting t...


What is a security deposit?

A security deposit is an amount of cash provided by a lessee to the lessor at inception of a lease for lessor protection against defaults, delays or other failures of performance b...


What is a security agreement?

A security interest arises when debtor agrees in a security agreement that the secured party may take specified collateral that is owned by the debtor if the debtor breaches the ag...


What is a sale-leaseback?

A lease transaction that involve the sale of an asset and the leasing back of the same asset either before or after the asset is put into use is a sale-leaseback.  An equipment sal...


What is a residual value guarantee? What is the stipulated loss value of a lease?

At the end of the lease term, a leased asset is equal to the residual value.  Residual value can be either unguaranteed or guaranteed by the lessee or a party related to the lessee...


What is a residual sharing agreement?

A contract between a lessor and its assignee whereby the proceeds in excess of a specific amount received by the lessor upon the sale or re-lease of the leased asset following the...


What is a repurchase agreement?

A repurchase agreement is a contract between a vendor and a lessor requiring the vendor to buy back leased equipment that was purchased from the vendor, often in the event of the l...


What is a remarketing agreement?

A remarketing agreement documents a contractual arrangement under which a vendor agrees to help sell equipment when it goes off-lease at the end of its lease term or earlier due to...


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