Personal Property Lease Agreement - Template Form Pro · US-law
✓ Valid in United States · drafted to comply with local law
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PERSONAL PROPERTY LEASE AGREEMENT
State of ________
BACKGROUND:
This Personal Property Lease Agreement (hereinafter the “Agreement”) is entered into and made effective as of ________ (the “Effective Date”), by and between the Lessor, ________ (hereinafter referred to as “Lessor”), of the following address:
________
and the Lessee, ________ (hereinafter referred to as “Lessee”), of the following address:
________
Lessor and Lessee may be referred to individually as a “Party” and collectively as the “Parties.” This Agreement constitutes a lease of goods governed by Article 2A of the Uniform Commercial Code as enacted in the State of ________.
§ I. RECITALS.
WHEREAS, the Lessor is the owner of the following personal property (the “Property”):
________
WHEREAS, the Property has an agreed upon value of $________ (________);
WHEREAS, the Lessor wishes to lease the Property to the Lessee on the terms set out in this Agreement, and the Lessee wishes to lease the Property from the Lessor on said terms;
WHEREAS, this Agreement is a lease only and the Lessee will have no right, title, or interest in or to the Property except for the use of the Property as described herein;
WHEREAS, this Agreement shall be treated as a true lease for federal and applicable state income tax purposes, with Lessor having all benefits of ownership of the Property;
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, IT IS HEREBY AGREED as follows:
§ II. TERM.
1. The lease term shall begin on ________ and shall continue for a period of ________ (the “Term”), unless sooner terminated in accordance with this Agreement.
2. Lessee shall have the option to extend the Term for an additional period of ________ by delivering written notice of such election to Lessor not less than ________ days prior to the expiration of the then-current Term. All terms and conditions of this Agreement shall continue to apply during any such extension unless otherwise agreed by the Parties in writing.
§ III. LEASE PAYMENTS.
3. Lessee shall pay to Lessor periodic installments of $________ (________).
4. The lease payments shall be payable on ________ of each ________ during the Term.
5. Payments may be made in the following acceptable manner(s):
________
6. Payments are to be made to the Lessor at the address listed above. The payment address may be changed at the discretion of the Lessor, and the Lessee will be informed of such change by written notice. All payment obligations under this Agreement are unconditional and shall be made without abatement, setoff, deduction, or counterclaim of any kind.
§ IV. SECURITY DEPOSIT.
7. The Lessee shall pay a security deposit of $________ (________) at the time this Agreement is signed. This deposit shall be returned to the Lessee at the termination of the lease, subject to the right of the Lessor to apply it against unpaid lease charges, damages, or other amounts owed by Lessee. Any amount refundable to the Lessee shall be paid at the time this Agreement is terminated, less any lawful deductions, together with an itemized statement of any such deductions.
§ V. LATE PAYMENTS.
8. For any lease payment that is not paid within ________ days of its due date, Lessee shall pay a late fee of $________ (________). The Parties agree that such late fee represents a reasonable estimate of the administrative costs incurred by Lessor as a result of late payment and is not a penalty. In no event shall any charge under this Agreement exceed the maximum amount permitted by applicable law.
§ VI. DELIVERY AND LOCATION OF PROPERTY.
9. Lessee shall be entitled to use and possession of the Property on the first day of the Term and shall yield possession to Lessor on the last day of the Term, unless otherwise agreed by both Parties in writing.
10. Lessee shall pick up the Property from the Lessor at the following address:
________
11. Lessee shall use the Property only at the following location:
________
12. Lessee shall not remove the Property from this location without the express prior written consent of Lessor.
13. Lessee agrees not to part with, sell, encumber, pledge, or dispose of the Property without the prior written consent of Lessor.
§ VII. USE OF PROPERTY.
14. Lessee shall use the Property at all times in a workmanlike manner and shall not injure the Property, except for ordinary and reasonable wear and tear.
15. Lessee shall use the Property only in the manner for which it was designed and intended to be used.
16. Lessee shall comply with all federal, state, and local laws, ordinances, and regulations with regard to Lessee’s possession and use of the Property.
17. ________ shall pay for the use and maintenance of the Property during the Term.
§ VIII. TITLE TO PROPERTY.
18. Lessor shall at all times retain title to the Property.
19. Title to the Property shall not pass to Lessee, and Lessee acquires only the right to use the Property in accordance with this Agreement.
20. Lessee agrees that the Property is and shall remain personal property, notwithstanding any manner of attachment to real property.
21. Any improvements or accessions to the Property shall become the property of Lessor.
22. Lessee shall keep the Property free and clear of all liens, encumbrances, and claims, and shall, at Lessor’s request, execute and deliver any documents, including financing statements under the Uniform Commercial Code, that Lessor may reasonably require to protect its interest in the Property.
§ IX. DISCLAIMER OF WARRANTIES.
23. LESSEE RECOGNIZES THAT THE PROPERTY IS LEASED “AS IS” AND “WITH ALL FAULTS.”
24. LESSOR MAKES NO REPRESENTATIONS, PROMISES, OR WARRANTIES, EITHER EXPRESS OR IMPLIED, CONCERNING THE MERCHANTABILITY, SUITABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY.
25. LESSOR EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES, WHETHER ARISING FROM STATUTE, COMMON LAW, CUSTOM, OR OTHERWISE.
26. THIS DISCLAIMER OF ALL WARRANTIES APPLIES TO BOTH THE LEASE OF THE PROPERTY AND ANY EXERCISE OF THE OPTION TO PURCHASE THE PROPERTY.
§ X. INDEMNIFICATION.
§ XI. TAXES.
28. Lessee, at its own expense, shall pay all personal property taxes and other assessments and governmental charges levied or assessed against the Property during the Term.
§ XII. INSURANCE.
29. Lessee, at its own expense and throughout the entire Term, shall insure the Property for the sum of $________ (________).
30. Lessee shall obtain the following type(s) of insurance for the Property:
________
31. Lessor shall be named as loss payee and additional insured under such policy of insurance, and a certificate of insurance shall be tendered to Lessor at the time Lessee receives the Property.
32. In case of loss, the insurance proceeds shall be used to repair or replace the Property unless otherwise agreed in writing by Lessor and Lessee.
§ XIII. RISK OF LOSS.
33. Lessee shall bear all risk of loss to the Property unless the loss occurs while the Property is in the possession of the Lessor.
34. Loss or damage to the Property shall not relieve Lessee of its obligations under this Agreement, including Lessee’s obligation to continue to make lease payments.
§ XIV. MAINTENANCE AND REPAIRS.
35. Lessee shall, at its own expense, keep and maintain the Property in good repair, condition, and working order throughout the Term. Lessee shall be responsible for all repairs, replacements, and servicing necessitated by Lessee’s use of the Property, ordinary wear and tear excepted. Lessor shall not be obligated to make any repairs or replacements to the Property during the Term.
§ XV. DEFAULT.
36. Lessee shall be in default under this Agreement upon the occurrence of any of the following events: (a) Lessee fails to make any lease payment when due and such failure continues for a period of ________ days after written notice from Lessor; (b) Lessee fails to perform or observe any other term, covenant, or condition of this Agreement and such failure continues uncured following written notice; (c) Lessee becomes insolvent, makes an assignment for the benefit of creditors, or files or has filed against it a petition in bankruptcy; or (d) the Property is seized, attached, or levied upon under legal process.
§ XVI. RETURN OF PROPERTY.
38. At the expiration of the Term or upon default by Lessee, Lessee shall return and deliver to Lessor the Property in good order and condition, ordinary wear and tear excepted.
39. The Property shall be returned to the following address:
________
§ XVII. HOLDOVER.
40. If Lessee maintains possession of the Property for any period after the termination of this Agreement (the “Holdover Period”), Lessee shall pay to Lessor lease payment(s) during the Holdover Period at a rate equal to 150% of the most recent rate preceding the Holdover Period (or the maximum amount allowed by law if less).
41. Such holdover shall constitute a month-to-month tenancy of the Property terminable by either Party upon written notice, and shall not constitute a renewal or extension of the Term for any other purpose.
42. This provision shall be waived in the event Lessee has exercised its Option to Purchase.
§ XVIII. OPTION TO PURCHASE.
43. Provided that Lessee complies with all the terms and conditions of this Agreement, Lessee shall have the right to purchase the Property for the sum of $________ (________), which amount shall be due at the time the option is exercised.
44. Lessee shall receive credit from lease payments made toward this amount in the following manner: ________.
45. Lessee must notify Lessor in writing of its intention to exercise the right to purchase the Property at least thirty (30) days prior to the expiration of the lease; otherwise the option to purchase shall terminate.
46. Upon Lessee’s default of any of the terms of this Agreement, Lessee’s option to purchase the Property shall be waived. Upon a valid exercise of the option and payment of the purchase price in full, Lessor shall transfer title to the Property to Lessee on an “as is, with all faults” basis, free of any lien created by Lessor.
§ XIX. NOTICES.
47. All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person, by nationally recognized overnight courier, or by certified or registered mail, postage prepaid, return receipt requested, addressed to the appropriate Party at the address shown for that Party at the beginning of this Agreement, or to such other address as a Party may designate by written notice.
§ XX. ASSIGNMENT.
48. Lessee shall not assign or transfer any interest in this Agreement or sublease the Property without the prior written consent of Lessor. Any attempted assignment, transfer, or sublease without such consent shall be void and shall constitute a default under this Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors, and permitted assigns.
§ XXI. TIME OF THE ESSENCE.
49. The Parties agree that time is of the essence in this Agreement in each and every particular.
§ XXII. SEVERABILITY.
50. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid, or unenforceable, the remaining provisions shall remain in full force and effect, and the Parties shall amend this Agreement to give effect to the stricken clause to the maximum extent permitted by law.
§ XXIII. WAIVER.
51. The failure of either Party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that Party’s right to subsequently enforce and compel strict compliance with every provision of this Agreement.
§ XXIV. ENTIRE AGREEMENT AND MODIFICATION.
52. This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, representations, or agreements, whether written or oral. No modification or amendment of this Agreement shall be effective unless in writing and signed by both Parties.
§ XXV. GOVERNING LAW; VENUE.
53. This Agreement shall be governed by and construed in accordance with the laws of the State of ________, without regard to its conflict of laws principles. The Parties consent to the exclusive jurisdiction and venue of the state and federal courts located in ________ County, State of ________. The Parties agree that this choice of law, venue, and jurisdiction provision is mandatory and not permissive in nature.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date first written above.
SIGNATURE OF LESSOR:
By: _______________________________________
Name: ________
Title: ________
Date: ________
SIGNATURE OF LESSEE:
By: _______________________________________
Name: ________
Title: ________
Date: ________
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