New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 100 - Personal Property Leasing Activities Of Banks And Trust Companies
Section 100.2 - Definitions
Universal Citation: 3 NY Comp Codes Rules and Regs ยง 100.2
Current through Register Vol. 46, No. 12, March 20, 2024
For the purposes of this Part:
(a) The term net-lease means a lease under which the bank or trust company 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;
(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; and
(5) the renewal of any license or
registration for the property unless such action by the bank or trust company
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 reasonable estimated residual value
of the property at the expiration of the initial term of the lease, so long as
the unguaranteed portion of such residual value does not exceed 25 percent of
the original cost of the property.
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