An equipment finance company (the company) creates a trust (trust) under a trust agreement (the “trust agreement”) for the purchase of equipment (the “equipment”), including the certification of motor vehicles (the “motor vehicles”). The use of the Titling Trust is intended to avoid the heavy administrative burdens and significant costs that are typically associated with the syndication of motor vehicle leasing. The structure is deliberately limited to motor vehicles, but also includes general equipment to maximize the flexibility available to the company. In addition to the SUBI supplement and the SUBI maintenance supplement, the funder will also be associated with acts of execution of various securitization documents that may include a combination of securitization contract, transfer contract, pooling and management agreement, leasing agreement and trust. Equipment is subject to equipment plans executed in accordance with leases structured in real or tax-motivated leases (equipment plans containing the lease are referred to as “lease agreements”) with third-party takers (the “taker”). The equipment is purchased directly by the Trust. For accounting purposes, transactions can be structured so that the corresponding assets remain either on the consolidated balance sheet of the sponsor-funder or withdrawn from the sponsor.” Although sponsoring lenders have generally maintained the tax benefits associated with associated leased vehicles, several transactions have focused on the transfer of tax ownership of associated leased vehicles and related tax benefits. Dealing with Investors The Company would continue to deal with its investors, as it has done in the past, using the same sales/assignment documents, with minor changes, to reflect the Titling Trust`s involvement. Every investor has the right to terminate his capital and transfer and/or rename at his own expense the related equipment and lease-sales contracts, which include a portion of the assets of his sub-trust. The Titling Trust`s activity is limited to the acquisition and record holders of leased vehicles and related leases. The Titling Trust reserves ownership of leased vehicles and leases at any time until a lease or sale or other provision of a leased vehicle is terminated, with the Titling Trust meeting the applicable re-registration and re-registration requirements.
Sponsor Lessor handles leases on behalf of Titling Trust and continues to offer leasing services to the underwriters. As a result, Pverees are not affected by the Titling Trust or its activities. Setting up and operating a Titling Trust. A Titling Trust is usually owned directly by the sponsor(in the case of highly rated sponsor donors) or indirectly through one or more bankrupt companies. The funder retains ownership of all Titling Trust assets for both accounting and tax purposes until securitization arrives. On that date, rental vehicles and associated leases may be retained or sold for accounting and tax purposes, depending on the securitization structure. By significantly reducing the tax risks associated with government retitling and taxation, while addressing bankruptcy problems, the Titling Trust has removed the barriers that previously prevented the effective securitization of vehicle leases and provided funders with additional and less costly sources of funding. The email address cannot be subscribed. Please, do it again.
It is not clear whether the transfer of economic participation to a subcontractor will be construed as the sale of a security within the meaning of the Securities Act of 1933 as amended and applicable domestic securities legislation. The analysis should be identical to the analysis conducted for the syndication of leasing financing by assigning everyone or an interest in an equipment plan or the transfer of a stake.