Issues inherent to private label lease transactions present an additional layer of complexity to the already challenging area of equipment leasing.
Issues in Private Label Lease Transaction Workouts
Issues inherent to private label lease transactions present an additional layer of complexity to the already challenging area of equipment leasing. The fact that the identity of the real owner of a lease has not been disclosed to the lessee, and that the owner is usually relying on third parties to service and collect the lease, introduces an additional element of risk to the transaction that may surpass the credit risk present in any transaction. As is often the case, careful drafting of the underlying documents dramatically enhances the likelihood of the successful resolution of a defaulted lease. Thoughtful documentation of the transaction from the outset, and conscientious monitoring of both the lessee and the assignor or entity servicing the lease, if they are distinct, is critical to successful portfolio management. This article highlights some of the issues that cause complexity in the private label lease transaction and suggests drafting ideas and litigation strategies that will minimize the additional pitfalls that can arise out of the complexity.
This premium content is locked for LawJournalNewsletters subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.






