Can the Lessee (Borrower) increase the principal amount of the lease after Lessor has been selected as the low bidder?
In most circumstances this is allowable. It would be preferable if the Lessee (Borrower) would disclose the amount not to exceed with a footnote if costs of some items are still being negotiated. It should be noted that the Lessee (Borrower) might be limited by the resolution approved by their governing body. Question: How much should I expect the Lessee (Borrower) to pay upfront? Answer: Typically, nothing. State and Local Governments and Federal Government may finance 100% of the cost of the equipment, including software. Although the taxing power of the Lessee is not pledged, the credit history of State and Local Government, in most cases, as well as Federal Government is excellent.
Related Questions
- What is the process for obtaining a NABERS Energy rating in a lease of lease scenario, particularly when the lessor or lessee doesn hold all relevant data, such as the energy bills?
- The Lessee (Borrower) is insisting that the Lessor pay the Lessee, who will in turn pay the vendor. Should this be allowed?
- Can the Lessee (Borrower) increase the principal amount of the lease after Lessor has been selected as the low bidder?
