We are not pledging our taxing power to repay the Lessor (Lender), what will happen if we fail to appropriate for the annual lease payment in following budget periods?
Non-Appropriation is one of the biggest risks the Lessor is taking. The Lessor (Lender) will file a UCC-1 to secure his position with the equipment being financed; however, failing to appropriate will damage the credit worthiness of the Lessee (Borrower). Rating Agencies have taken a strong stance on this issue. Lessees who fail to appropriate for convinces or obsoleteness risk a downgrade on their credit ratings. This could be very costly over the long run. Back to Top Lessor (Lender) Questions Question: Should the Lessor pay for the equipment before the Lessee has received the equipment? Answer: No, the Lessee must receive and accept the equipment from the vendor before any payment is made to the vendor. You should be positioned to pay for that equipment when it is delivered and accepted by the Lessee. Failure to promptly pay the vendor after Lessee’s acceptance would result in Lessor being prohibited by GovLease.Net from entering further bids on GovLease.Net. Payment delays to vendo
Related Questions
- Since we are not pledging our taxing power to repay the Lessor (Lender), what will happen if we fail to appropriate for the annual lease payments in subsequent budget periods?
- The Lessee is not pledging its taxing power to repay the lease, what will happen if they fail to appropriate for the annual lease payment in following budget periods?
- We are not pledging our taxing power to repay the Lessor (Lender), what will happen if we fail to appropriate for the annual lease payment in following budget periods?
