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Item of Lease - any movable or immovable property |
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Lease Period - refers to the life of the lease. Term ranges from
two (2) to seven (7) years depending on the type of the equipment,
its useful life, and the lessee’s own needs |
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Rate - prevailing market rate at the time of availment which can
be fixed or reset quarterly, semi-annually, or annually |
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Manner of Payment - lease rentals can be paid monthly, quarterly
or semi-annually. Computation can be made in advance or in arrears
which means the lessee can pay the first rental at the beginning or
at the end of each payment period |
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Guaranty Deposit - amount put up by the lessee as equity to ensure
compliance with the terms and conditions of the lease agreement. Maximum
amount is the cost of the equipment |
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Residual Value - the estimated market value of the equipment at
the end of the lease period. Amount shall in no instance be less than
5% of ULFC’s acquisition cost of the leased asset. |
