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Taking Assignments of Equipment Leases: An Analysis of an Acceptable Documentation Package
Like many financial products, equipment leases can be bought and sold. The lease assignment market has become increasingly active and complex in recent years, despite the economic downturn of the early 21st century. This article highlights the type of documentation that should generally be required when a broker or other originator of leases (the “Originator”) assigns leases to a funding bank (the “Funder”).
Of course, equipment leases are assigned in a variety of ways including outright assignments and collateral assignments (“discounting” transactions). The underlying leases being assigned are sometimes true leases and other times disguised loans (“leases intended as security”). Although these factors can sometimes affect the documentation that is required, this article outlines what is generally required in both outright assignments and discounting transactions of both true leases and leases intended as security. The article does not address “pure broker” situations pursuant to which the Funder would execute the lease directly, as lessor, as opposed to taking some sort of an assignment from the Originator.
This article also does not address the type of lease provisions that the assigned leases should contain. If leases are executed on the Originator's documents, rather than the Funder's documents, the Funder may want to have an additional checklist that outlines minimum acceptable lease provisions. An example of such a checklist is provided below.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.