New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 16 - BANKING
Part 35 - LEASING ACTIVITIES
Section 12.16.35.7 - DEFINITIONS
Universal Citation: 12 NM Admin Code 12.16.35.7
Current through Register Vol. 35, No. 6, March 26, 2024
A. A "net lease" is a lease under which the bank will not, directly or indirectly, provide or be obligated to provide for:
(1) the servicing,
repair or maintenance of the leased property during the lease term;
(2) the purchasing of parts and accessories
for the leased property; however, improvements and additions to the leased
property may be leased to the lessee upon its request in accordance with the
full payment requirements of this ruling;
(3) the loan of replacement or substitute
property while the leased property is being serviced;
(4) the purchasing of insurance for the
lessee, except where the lessee has failed in its contractual obligation to
purchase or maintain the required insurance;
(5) the renewal of any license or
registration for the property unless such action by the bank is clearly
necessary to protect its interest as an owner or financier of the
property.
B. A "full-payout" lease is one from which the lessor can reasonably expect to realize a return of its full investment in the leased property plus the estimated cost of financing the property over the term of the lease from:
(1) rentals;
(2) estimated tax benefits; and
(3) the estimated residual value of the
property at the expiration of the initial term of the lease.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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