Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Using Technology to Lease Technology

By Howard K. Weber
March 29, 2006
Since leasing was first used as a financial tool, pricing has been a complex matter. To price properly, many variables must be taken into account including: funding date, credit rating of lessee, residual assumed, tax rate, term of the transaction, desired spread over an index, etc.

Once all the variables are determined, a mathematical algorithm may generally be used to determine the lease rate, assuming that some general assumptions beyond the specific ones mentioned above remain static.

In the early days of leasing, before computers enabled lessors to calculate rentals easily, most lessors used the ever-famous 'blue book' to determine lease pricing. For those of you too young to remember vinyl LP records, telephones with dials, and television sets that only showed black and white pictures, the 'blue book' was a rather thick reference manual filled with lease rate factors for various combinations of the variables mentioned above. Naturally, while the blue book was useful for some combinations, it was not useful for all combinations, and many times the lease practitioner had to make estimates of rates by interpolating between two rates.

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.