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Commitment Letters
Leasing News is working on eight complaints at this time from lessees who want their advance rentals returned. Four of the complaints are about the same company. Perhaps another sign of the “contracting economy,” as it is presently being labeled, are the tougher credits not going together and both brokers and lessors thinking they can keep the advance rentals Some states have laws regarding this, and many states require the broker/lessor be licensed. Much of these disputes can be resolved with a good commitment/proposal letter. This was “constructed” by Leasing News Advisory Board attorney Kenneth Greene, now at partner at Hamrick & Evans, LLP, Universal City, California, with offices also in Northern California. http://www.leasingnews.org/Conscious-Top%20Stories/Greene_Lease_agreement.htm Commitment letter for middle to large size leases: This form is one of the most widely used in the leasing industry and covers most of the bases. Note: Last sentences about the signatures makes this more a “proposal,” than commitment. If required, these sentences may be removed. http://two.leasingnews.org/loose_files/Generic%20commit%20Letter.DOC This form charges a fee to process the application: http://two.leasingnews.org/loose_files/Lease_app_agreement.rtf Loans or “Working Capital” commitment letters are explicit and require the broker to often be licensed. This form is for use in California: http://two.leasingnews.org/loose_files/Authorization_to_find_lender.rtf To contact Ken Greene about “The Greene Commitment Letter:”
Kenneth C. Greene, Partner Northern Office: |
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