Interim Lease Funding Agreement

Summary

This precedent is an Interim Lease Funding Agreement used in equipment leasing transactions where the lessor agrees, for a limited period, to fund the purchase of equipment from suppliers at the lessee's request and then transition that funded equipment into the parties' longer-form Master Lease Agreement (Equipment Financing) once the lease schedule is issued and accepted. This precedent includes practical guidance and drafting notes. This agreement is designed for situations where the lessee cannot, or does not, want to pay the supplier directly at the time of order, but the lessor is willing to advance the purchase price, subject to an overall authorized amount and an expiry date. Its purpose is to bridge the gap between purchase and lease commencement by setting clear rules for invoice payment, interim interest/carrying costs, when the lease commencement date occurs, and what happens if the lessee does not accept the schedule or the periodic rental. During the interim period, the ...