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Insurances refers to
all insurance contracts and policies to
be put in place in order to insure the
Equipment and to insure against personal
liability of the Lessor and of the Lessee.
Insurers refers to the
insurance companies issuing the insurance.
Purchase Contract designates
the Contract agreed between the Lessee
and the Supplier.
Lessor refers to the
company that takes part to the Leasing
Contract for a participation share level
that should have been determined according
to the other participation shares of the
different syndication financing members
elected to participate to the syndication
and that is charged with covering the
global amount corresponding to the facility
to be put in place.
Lessee refers to the
party that disposes of the right to benefit
from the economic use of the Equipment.
Although the Equipment is the Lessee’s
property, it remains on a legal plan,
the Lessor’s ownership.
Documentary credit refers
to the payment instrument by which a bank
emits a written engagement to pay in the
currency specified under instructions
of the Purchaser an amount equivalent
to the Purchase Contract amount against
shipping documents remittance by Beneficiary
within the agreed delays.
Date of effect of the leasing
contract refers to the date at
which the Leasing Contract shall take
full effect upon satisfaction of all prerequisite
conditions.
Delivery date means the
date on which the Lessor pays for the
Equipment costs in accordance with the
terms and conditions defined by the Purchase
Contract.
Supplier means the Equipment
manufacturer company of each lot of equipment
according to the Leasing Contract.
Guarantor refers to the
institution that would be charged with
putting in place the Guarantees.
Investment means the
total amount of the financing arrangement
granted by the Lessor covering the Purchase
Price of each lot of Equipment in addition
to expenses related to the settlement
and payment of this sum.
Rent due date means the
first business day of each Rent Period.
Business day designates
(a) a day on which local banks in the
city where payment is to be made in accordance
with the terms of the present lease contract
are open; (b) for all the other operations
in US Dollars, a day on which the banks
in New York, U.S.A., are open.
Leasing refers to a legal
act that is not linked to a specific legislation
but that makes reference to both leasing
and selling specifications. Leasing could
be defined as an investment good or a
durable consumption good medium/long term
lleasing ended with the transmission of
good ownership. During the lease period,
the Equipment remains the Lessor’s legal
property and the Lessee benefits from
the right to use the Equipment. Contrary
to a classical lease contract, the Lessee
should be charged with some obligations
such as maintenance of the Equipment and
also bear all types of risks relative
to the good and to its use.
The Lessee, in order to benefit from the
right to use the Equipment, pays rents
comprising a part of profit and also the
part of good amortization calculated according
to the lease duration. At the end of the
lease duration, the Lessee is proposed
to buy the financed Equipment at a price
corresponding to the calculated residual
value.
Libor means the indicative
rate per cent per annum for periods of
three months and for a given amount applicable
to deposits of the same amount in US dollars,
and for an equal period, on the London
market, at eleven a.m. (11:00 a.m.) London
time, two business days preceding the
beginning of each rent period.
Financing currency refers
to the financing facility to be put in
place in favour of the Lessee and covering
the acquisition of one or several batches
of Equipment.
Purchase price means
the value of each Contract of Supply to
be financed according to terms of the
present Leasing Contract.
Syndication refers to
all financial institutions called by ALIF
to participate to an Equipment financing.
Such participation takes place in association
with ALIF either trhough a Moudharaba
or a Mousharaka agreement. In any case
should it modify the rights and obligations
of both parties to the leasing contract. |
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