Technology Leasing:

Power Tools for Lessees

Absolute obligations

1

Acceptance certificate

7

Activity based costing

221

Additional assurances

69

Advance payments

129

Alternative Minimum Tax (AMT)

202

Arrears payments

129

Article 2A

50,51,91

Assignment

98

  of warranties

12

  by lessor

44,68

Automatic renewal

56

Borrowing rate, incremental

147

Buyout, early

40

Casualty loss

14, 30

Casualty values

14,32,50

  calculations

58

  reasonableness tests

34

Certificate, acceptance

7

Conditional sale

29

Consent, reasonable

21

Contest rights

59

Cost allocation

221

Cost of capital

195

Co-terminality

22

Coterminous time horizons

213

Counterparts

83

Damages, liquidated

50

Deemed acceptance

57

Deemed inspected

8

Default

71,106

  event of

47

  in

47

  remedies

110

Defaults and remedies, lessee

47

Defaults and remedies, lessor

51

Defaults, payment

48

Delivery and acceptance

7

  certificate of

7

Depreciation tax shield

238

Disclaimer of warranties

12

Discount rate, appropriate

146

Disguised loans

3

Early buyout

40

Early out bids, analysis of

164

Early termination

37

EBO

40

Economic value added

222

Effective rate

126,240

End-of-lease issues

148

  de-installation

149

  equipment availability

148

  equipment casualties

149

  shipping expense

149

Environmental factors influencing lease or buy

 

  firm’s cost of money

193

  purchase volume

192

  tax issues

197

Equipment manufacturer, payment to

10

Equipment modifications

20

Equipment substitution

 

  substitution

18

  like kind

18

  obsolete

39

  recertified

17

  return of

17

Equivalent monthly cost, in lease or buy analysis

216

ETO

37,40

Event of default

47

Fair market value

3,4

Fair market value purchase option

118

First law of lease versus lease analysis

144

Fixed price purchase options

150

Fixed price renewal options

150

Float

11

Foreign tax credit limitation

206

Future values

131

Gross negligence, lessor's

27

Hell or high water clause

1,13,147

Implicit rate

126,240

Implied warranty

2

In default

47,59

Income taxes

27

Incremental borrowing rate

147

Incremental lease costs

222

Incremental purchase costs

223

Indemnities

53

Indemnities and liens

52

Indemnity

70,102

Insurance

30,71,105

Intangibles, favoring leasing

 

  environmental concerns

243

  forced technology refresh

243

  operating budget opportunity

244

Intangibles, favoring ownership

 

  fewer restrictions

244

  no end-of-lease frustration

244

Interim rent

9,57

Late payments

65,89

Lease commencement

148

Lease or buy sensitivity

 

  alternative minimum tax

253

  cost of money

248

  end-of-lease cost

259

  federal and state income tax rate

251

  foreign tax credits

255

  net operating loss carry-forward

252

  ownership portfolio costs

261

  residual value

257

  sales and use tax

249

Lease or buy, policy factors

 

  after end-of-lease damage

211

  de-installation

210

  equipment casualties

210

  equipment utilization period

209

  higher ownership costs

211

  interim rent

208

  shipping

209

Lease or buy, tax issues

 

  alternative minimum tax

202

  applicable federal rate

200

  foreign tax credits

205

  net operating loss carry-forwards

201

  sales and use taxes

200

Lease renewal

119

Lease versus lease analysis, first law

144

Leases, net

6

Lessee defaults and remedies

47

Lessee obligations

31

Lessee rights

13

Lessor assignments

44

Lessor defaults and remedies

51

Lessor perspectives

43

Lessor's performance of lessee's obligations

69,101

Liens, removal of

54

Limitation of warranty and liability

68

Limited use property

28

Liquidated damages

50

Loans, disguised

3

Loss, casualty

14,30

Maintenance and alterations

67,93

Mitigation

50

Modifications, equipment

20

Modifications, readily removable

20

Mutually agreed

23

Net advantage of leasing

238

Net lease

6,65,89

Obligations, absolute

1

Obligations, lessee

31

Payments

92

  frequency of

135

  proof of

11

  advance

129

  arrears

129

Perfect returns

58

Present values

122

Property taxes

26

Protected residual

32

Purchase bids, analysis of

171

Purchase option

 

  notice of

116

  rider

77,115

  fair market value

118

  liens

119

  fixed price

150

Quiet enjoyment

68,98

Rates

 

  effective

240

  implicit

240

  running

126

Reasonable consent

21

Reasonable wear and tear

19

Relocation of equipment, right to

16

Remedies, default

73

Renewal bids, analysis of

178

Renewal options, fixed price

150

Rent and payment obligations

64

Rent, interim

9

Replacement chain, in lease or buy analysis

216

Residual value

3,4

Residual, protected

32

Return of equipment

17,67,96

Right to relocate equipment

16

Rights, lessee

13

Risk of loss

70,104

Running rate

126

Sales and use taxes

25

Scenario analysis

186

Securitization

45

Security interest

64,87

Self-insure

31

Separate agreements

82

Step payments

138

Stipulated loss value

14,32

Subleasing

28,42

Sublessee

42

Supply contracts

63,84

Tax indemnities, blanket

60

Taxable status

66

Taxes

66

  income

27

  property

26

  sales and use

25

Termination payment

132

Termination values

38

Title

64,86

True lease

27

UCC

12

UCC Financing Statement

43

Uneconomic

39

Uniform Commercial Code

12

Upgrades

21

Use and location

67,94

Value, stipulated loss

32

Value-based metrics

222

Values

 

  casualty

32

  termination

38

Waiver of claims

68,98

Waivers

66,91

Warranties, assignment of

 

  assignment of

12

  disclaimer of

12

Warranty, implied

2

Wear and tear, reasonable

19

Weighted average cost of capital

195

Yields

126

  effective

126

  implicit

126

  running

126