In The Marketplace
Highlights of the latest equipment leasing news from around the country.
Lease Termination Agreements: Get Out Quickly, But Carefully
Regardless of the route a landlord and tenant take to arrive at the mutual decision to terminate a lease, the final steps will require execution of a lease termination agreement. Sometimes, in their haste to get out quickly, landlords and tenants overlook many issues they should consider before signing. This article will help landlords and tenants continue to get out quickly, while preventing them from overlooking issues they should consider before executing such an agreement.
In The Marketplace
Highlights of the latest equipment leasing news from around the country.
FASB Finalizes Its Decisions on Rerunning Leveraged Leases
As reported last month by Bill Bosco, the Financial Accounting Standards Board planned to, and did in fact, meet on March 2 to finalize its decisions on the issue of recalculating a leveraged lease in the event of changes in timing of tax benefits. The Board affirmed its tentative conclusions that a change in timing of the realization of tax benefits should require a recalculation of the leveraged lease and a re-evaluation of the classification of the leveraged lease.
Come 'Hell or High Water' NorVergence Causing a Stir over Documentation
So-called "hell or high water," "waiver of defense" and lessor favorable "submission to jurisdiction" clauses have long been cornerstones of equipment finance documentation. But, the unfolding debacle over the last year involving a company called NorVergence has cast an unfavorable light on these important provisions and, in doing so, entangled most of the top players in the leasing industry.
Selling the State's Zoning Exemption?
The Court of Appeals recently confronted a significant zoning issue: When, and on what terms, can the state or a state agency transfer to a private entity its exemption from local zoning restrictions? In <i>Matter of Crown Communication New York, Inc. v. Department of Transportation</i> (NYLJ 2/14/05, p. 19, col. 4), a divided court held that telecommunications towers erected on state land were immune from local zoning regulations even when the much of the space on the towers had been leased to private companies. The court's decision, however, raises as many questions as it resolves.
