U.S. equipment leasing: the legal context.

A label does not settle the legal structure

The UCC model text distinguishes a lease from a transaction creating a security interest by looking at the facts and obligations. The law adopted in the relevant jurisdiction and the actual agreement must be examined. A marketing name is not a legal opinion.

Commercial financing is not free of regulation

California regulates certain commercial lending and brokering activities and imposes disclosures for covered commercial financing. New York also has commercial financing disclosure rules. Scope, thresholds, exceptions, and roles differ; neither example establishes a single nationwide rule.

Referral activity requires its own review

The operator's actual conduct and compensation matter when assessing referral or brokerage obligations. A statement that a website only makes introductions is not an exemption. The applicable requirements need to be established for the actual activities, product and jurisdiction before carrying out a regulated activity or accepting a referral fee.

Sales-based financing is a separate category

Texas Chapter 398 addresses commercial financing repaid by reference to sales or revenue. It is not a general registration rule for all equipment leases, and includes a lease exemption. Do not treat equipment finance agreements, true leases and revenue-based advances as interchangeable products.

Take questions to the right party

The financing partner should explain its proposed transaction and disclosures. Your legal adviser should review contractual rights and obligations, including remedies, governing law, notices, and dispute provisions. This page is general context and does not establish legal eligibility for a project.

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