Florida Regulations 69U-120.005: Lease Financing; Purchase of Leases
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State banks may purchase leases (in addition to those leases where the bank is the owner and lessor) covering specified goods as defined in Section 679.1021(1)(rr), F.S., except the unborn young of animals and growing crops, with or without recourse or guarantee by the lessor, subject to the following conditions:
(1) All leases or portions of leases held as an asset shall be supported by a credit file.
(2) The aggregate total of leases purchased directly or by participation from one lessor shall not exceed 25 percent of the bank’s capital accounts; provided, however, that if the bank’s credit files pertaining to each lease or portion thereof are adequate to support the extension of credit and, upon certification by a duly designated official of the bank that the responsibility of each lessee has been evaluated and the bank is relying primarily upon each such lessee for payment, this limitation shall not apply.
(3) In any event, however, the aggregate total of extensions of credit, loans or leases receivable, to any one lessee shall not exceed the lending limitations imposed by Florida Statutes § 658.48
Rulemaking Authority Florida Statutes § 655.012(2). Law Implemented 658.67(8) FS. History-New 9-26-78, Amended 6-30-81, Formerly 3C-11.19, 3C-11.019, 3C-120.005, Amended 1-18-21.
Terms Used In Florida Regulations 69U-120.005
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
(2) The aggregate total of leases purchased directly or by participation from one lessor shall not exceed 25 percent of the bank’s capital accounts; provided, however, that if the bank’s credit files pertaining to each lease or portion thereof are adequate to support the extension of credit and, upon certification by a duly designated official of the bank that the responsibility of each lessee has been evaluated and the bank is relying primarily upon each such lessee for payment, this limitation shall not apply.
(3) In any event, however, the aggregate total of extensions of credit, loans or leases receivable, to any one lessee shall not exceed the lending limitations imposed by Florida Statutes § 658.48
Rulemaking Authority Florida Statutes § 655.012(2). Law Implemented 658.67(8) FS. History-New 9-26-78, Amended 6-30-81, Formerly 3C-11.19, 3C-11.019, 3C-120.005, Amended 1-18-21.