Rolling Stock Lease Agreement

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    Concession agreement between FTSA and the Peruvian State – Contrato de Concesión de los Ferrocarriles del Sur Oriente Financing agreements may require the lessor to manage all or part of the leases in a certain way RAILROAD has the right to inspect the rolling stock before delivery. After this inspection, RAILROAD has the right to refuse vehicles that are not in perfect condition. After the inspection, it is assumed that RAILROAD accepted the rolling stock “as is”. The leasing company hereby leases the railway vehicle described below to the RAILWAY: __ Landlords should also consider whether the applicable law of the lease applies terms and conditions such as “difficulty” or other equity-based rules that may affect payment provisions for “hell or flood”. The parties may have recourse if, as a result of events beyond their control, they are no longer in the situation in which they originally engaged. Tenants can claim that since they no longer benefit from the rolling stock they cannot use, they do not have to pay rent. This argument may also apply if the contract provides for such a risk in the tenant`s court. The purpose of this review list is to inform you about this document in question and to help you create it. This agreement can be adapted for various purposes such as trailer rental and other similar items. RAILROAD will pay as rent in advance the sum of $____ In the event of termination, RAILROAD will provide the leased rolling stock at its own expense __ Therefore, a lessor may have a number of lease conditions and applicable laws to consider throughout its portfolio.

    Each jurisdiction will have its own interpretative characteristics, its own concepts of general law, and the government`s approach to fighting the pandemic and mitigating the economic impact. However, rolling stock maintenance obligations – which are subject to a dry lease for the lessee and a full-service lease for the lessor – may very well be something that cannot be physically met. Whether due to movement restrictions or unavailability of personnel due to illness, lessors with maintenance obligations should consider the defensive measures available against a breach of contract due to non-maintenance of rolling stock. This must be considered on a case-by-case basis, both from a contractual and a general point of view. RAILROAD returns the rolling stock in the same condition as it was, except for the usual wear and tear. Landlords will argue that the non-payment is not related to the effects of the virus – it is unlikely that a rent payment simply cannot be made if funds are available. Tenants` financial difficulties, which result, for example, from lower revenues from travel restrictions, cannot be considered an event beyond their control and prevent them from fulfilling their payment obligations (although in some jurisdictions this may be an event that triggers a renegotiation of the lease to make it more “balanced”). We recommend that you seek advice at an early stage on possible arguments that tenants can make so that landlords are well equipped to respond in a timely manner to tenants` communications. Given the plethora of new government regulations and stimulus packages in Europe and the legal differences in each leasing portfolio, it is unlikely that the formulation of their approach will be a “one size fits all” for landlords. Where there is a risk of insolvency of a lessee, lessors should consider when such problems may trigger a termination event in accordance with the terms of the lease and seek advice in determining the jurisdiction in which the insolvency proceedings are likely to be conducted; key features that may help limit enforcement actions (p.B a possible moratorium or “suspension” that may be imposed); and the procedure by which the lessor could repossess the leased assets of the insolvent operator. Lessors should also take into account the likelihood that other creditors will sue for the insolvency of the lessee and the obligations to which its administrators are subject, which may bring forward the date on which insolvency proceedings are likely to be commenced and/or the need to implement standstill arrangements. It is always important for landlords to monitor their tenant`s financial situation and ensure that they receive financial reports and forecasts in accordance with the rental terms.

    Due to the global nature of the pandemic, the impact is felt by all industry participants. Instead of proceeding immediately with default and enforcement (in a difficult market), it is crucial that the parties of all parties work together to mitigate the problems that arise. This requires a commercial approach, but based on an understanding of the legal environment in which the parties operate. When negotiating with a tenant, it is important that you know what the terms of the lease and all applicable laws require and allow. Warned is pre-armed. RAILROAD has the right to paint rolling stock in its coloring. Upon termination of the lease, RAILROAD will return the painted rolling stock in a neutral primer. .