Small Ticket Equipment Finance

Attorneys at Chapman and Cutler have a long history of representing clients engaged in small ticket equipment finance. Our clients in this area include both public and private leasing companies, as well as bank leasing and captive finance subsidiaries. We provide negotiation and documentation services for both product origination and funding transactions, as well as providing ongoing advice on regulatory and other commercial, corporate and tax law issues applicable to the small ticket equipment lessor.

Our attorneys have represented small ticket equipment finance companies at all stages of their life cycle, in both up and down markets, and combine their knowledge of issues, opportunities and constraints applicable to this sector to offer advice that is both practical and strategic.

Assets financed cover all categories, including computer and office equipment, medical equipment, manufacturing and wine-making equipment, post production recording equipment, and transportation equipment. Funding arrangements handled include asset based loans, CP conduit transactions and term securitizations.

We offer a broad array of legal services for the small ticket equipment finance company, including: vendor and broker program agreements, remarketing agreements, loss sharing agreements, lease and loan form packages, pool purchase and sale agreements, receivables sale agreements, participation agreements, servicing agreements, lockbox arrangements, personal property tax agreements, custodial agreements, and funding arrangements.

Related Practices

Representative Transactions

• We represented an equipment leasing company in connection with a $450,000,000 TALF eligible term securitization.
• We represented a specialty finance company on the renewal and restructuring of multiple credit facilities in connection with both an initial workout arrangement and subsequent acquisition transaction.
• We have represented several private equipment finance companies in connection with subordinated debt issuances, with and without warrants.
• We represented a newly formed vendor finance company in connection with its initial asset based loan/working capital facility and subsequent securitization transactions, including negotiation of an intercreditor agreement allowing for use of a centralized master lockbox.
• We represented a small ticket leasing company in 3 CP conduit transactions, 7 term securitizations and miscellaneous other funding and portfolio transactions over a life cycle that included going public, being acquired, changing product focus and selling off portfolio.
• We have represented two different private small ticket finance companies for over 10 years in multiple CP conduit, term securitization and other portfolio funding transactions and have also represented them with respect to various corporate and acquisition activities.
• We have represented various parties in connection with the simultaneous acquisition and securitization of small ticket lease portfolios, including by assisting with initial portfolio due diligence, negotiation of purchase terms and indemnities and financing terms and documentation.
• We represented a specialty equipment finance company in connection its development of a vendor program agreement to cover future originations along with acquisition of the vendor’s existing $40 million portfolio of equipment finance contracts.
• We have represented bank leasing subsidiaries in connection with a joint ventures that provide for the origination, funding and servicing of small ticket leases.
• We represented a bank subsidiary operating as a specialty lender active in the dental and medical equipment and practice finance area in connection with the funding of its originations through CP conduit and purchase facilities and term securitizations.
• We represented a public micro ticket leasing company in multiple term and warehouse securitizations, including negotiation of intercreditor arrangements between its securitization and bank lenders and in a subsequent non-bankruptcy workout of same, and assisted in portfolio purchase transactions.
• We represent finance subsidiaries of manufacturing companies in connection with funding arrangements that include receivables sale transactions, term securitizations and commercial paper conduit financing. We have also provided legal advice in connection with the loan and lease forms being used and third party servicing arrangements.
• We represented a bank leasing subsidiary in performing due diligence, documenting and negotiating terms for sales and purchases of pools of small ticket leases aggregating over $250 million used to generate earnings and diversify credit mix in its overall portfolio.
• We represent banks and investment funds in making asset based loans and other extensions of credit to specialty finance companies, including equipment leasing companies.
• We have developed documentation for master flow agreements used by a bank leasing subsidiary to syndicate tax exempt lease schedules.
• We have developed documentation for motor vehicle titling trusts used by various equipment finance companies to effect assignments of motor vehicle leases without re-titling.
• We have assisted a variety of clients in creating or updating forms of leases, loans, guarantees, and other documentation packages to be used in originating equipment finance contracts.
• We provide ongoing advice, updates, and presentations to our clients on legal and regulatory matters relevant to equipment finance companies on topics such as revisions to the Uniform Commercial Code, evolving law and practice in areas of electronic contracting, and state licensing and tax issues.