Why does RLC include Property Tax in the lease payment?
A lease agreement will view the equipment as collateral for its extension of credit to a lessee and will state in the documents that it is a lienholder in some manner for the equipment being leased. However, a failure to pay applicable property taxes can result in the local government filing a lien on the equipment that would supercede RLC’s position and therefore impact our collateral position. RLC always wants to be the responsible party for complying with property tax laws so as to avoid any issues with non-payments of property tax due.
