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FINANCE AND BUDGET COMMITTEE OCTOBER 17, 2002SUBJECT: DEFEASED LEASE TRANSACTION FOR UP TO 1,162 BUSESACTION:APPROVE DEFEASED LEASE TRANSACTIONRECOMMENDATIONA. Authorize the Chief Executive Officer
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How to fill out defeased lease transaction for

01
To fill out a defeased lease transaction, follow these steps:
02
Gather all the relevant information about the lease, including the terms and conditions, the parties involved, and any applicable legal documents.
03
Determine the value of the leased property and the amount of the lease payments.
04
Prepare the necessary paperwork, such as a lease agreement and a defeasance agreement.
05
Review the lease and defeasance agreements to ensure compliance with legal and regulatory requirements.
06
Execute the lease and defeasance agreements, ensuring that all parties involved sign and date the documents.
07
Make any required payments, such as the initial payment and ongoing lease payments.
08
Monitor the lease throughout its term, keeping track of important dates and obligations.
09
Close out the defeased lease transaction by fulfilling all lease requirements and obligations, and making any final payments as necessary.

Who needs defeased lease transaction for?

01
Defeased lease transactions are typically needed by individuals or businesses involved in real estate leasing or financing.
02
Some common scenarios where defeased lease transactions may be necessary include:
03
- Property owners who want to transfer some or all of the leased property's ownership or financing responsibilities to another party.
04
- Tenants who want to secure financing or ensure the stability of their lease agreement by having the lease defeased.
05
- Lenders or investors who want to mitigate risks associated with a lease by having it defeased.
06
Overall, anyone involved in a lease transaction can benefit from a defeased lease arrangement to ensure the fulfillment of contractual obligations and manage risks.

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A defeased lease transaction is used to remove an existing lease liability from the balance sheet by securing it with government securities, allowing lessees to fulfill their lease obligations through the securities rather than through lease payments.
Typically, organizations that engage in defeasance to handle their lease obligations are required to file for a defeased lease transaction.
To fill out a defeased lease transaction, organizations must provide detailed information about the lease, the securities used for defeasance, and the payment schedule, following specific guidelines set forth by relevant authorities.
The purpose of a defeased lease transaction is to relieve the lessee of the lease liability on their balance sheet, often improving financial ratios and providing flexibility in financial management.
The information reported must include details about the original lease, the defeasance structure, the type of securities used, and the schedule of future cash flows.
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