Vermont Statutes Title 9 Sec. 2383
Terms Used In Vermont Statutes Title 9 Sec. 2383
- Appraisal: A determination of property value.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Fair market value: means the price the leased property would be sold for in a transaction between willing and informed parties in an arms-length transaction. See
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- 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
- lease: means a lease of property to a farmer under which:
- Lessee: means a person who acquires the right to possession and use of leased property under an agricultural finance lease. See
- Lessor: means a person who transfers the right to possession and use of leased property under an agricultural finance lease, and agents, successors, and assigns of the lessor. See
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- property: means personal property leased by a lessor to a farmer lessee for use in farming, including goods, livestock, equipment and machinery, bulk milk tanks, silos, manure storage systems, tools, fixtures that were personal property at the time the lease was entered into, and accessories. See
§ 2383. Disclosure sheet
The agricultural finance lease shall contain, or be accompanied by, a disclosure sheet that contains the following information in easily readable form:
(1) The names and addresses of the lessor and lessee. If the seller of the leased property is an entity different than the lessor, the name and address of the seller shall also be included.
(2) A brief description of each item of the leased property.
(3) The purchase price of leased property purchased by the lessor contemporaneously with the execution of the agricultural finance lease, evidenced by a copy of the sales invoice or, for other leased property, identification of the leased property’s fair market value at the time of execution of the lease.
(4) The total amount of any advance payment, down payment, security deposit, together with the rate of interest, if any, or trade-in allowance.
(5) The number, amount, and due dates or periods of payments scheduled under the lease, and the total amount of the periodic payments.
(6) The total amount paid or payable by the lessee during the lease term for official fees, registration, certificate of title, license fees, and taxes. If these amounts are not known, a good faith estimate shall be included.
(7) The total amount of all other charges payable by the lessee to the lessor, individually itemized, that are not included in the periodic payments, except for costs of collection upon default.
(8) A brief identification of any insurance required by the lease, including:
(A) if provided or paid for by the lessor, the types and amounts of coverages and the cost to the lessee; or
(B) if not provided or paid for by the lessor, the types and amounts of coverages required of the lessee.
(9) A statement identifying any express warranties or guarantees available to the lessee made by the lessor or manufacturer with respect to the leased property.
(10) Identification of any person responsible for maintaining or servicing the leased property, a brief description of any maintenance responsibility, and a statement of reasonable standards for wear and use, if the lessor sets such standards.
(11) A description of the terms and conditions of any security interest held or to be retained by the lessor, including any mortgage connected with the lease, and a clear identification of the property to which the security interest applies.
(12) The amount or method of determining the amount of any penalty or other charge for delinquency, default, or late payments.
(13) A statement of the conditions under which the lessee or lessor may terminate the lease before the end of the lease term, and the amount, or method of determining the amount, of any penalty or other charge for early termination.
(14) Identification of the amount, and the method of calculating the amount, of any penalty or other charge for which the lessee is liable at the end of the lease term, if a liability exists.
(15) A statement of whether the lessee may purchase the leased property before or at the end of the lease term, and identification of the exact time when the option may be exercised. The statement shall also disclose the purchase price or declare that the price will be based on the property’s fair market value at the time the property may be purchased by the lessee. If the price will be based on fair market value, the historical experience, if any, of the lessor in calculating the purchase price of similar equipment under similar leases shall also be disclosed.
(16) If the lessee has an option to purchase the leased property before or at the end of the lease term based on the property’s fair market value, a statement that the lessee may obtain a professional appraisal of the fair market value by an independent third party agreed to by the lessee and lessor. The appraised price shall be final and binding upon the lessor and lessee. The cost of the appraisal shall be shared equally by the lessor and lessee. The lessee shall not be obliged to exercise the option to purchase the property even though an appraisal has been obtained.
(17) A declaration that comparison of the total amount of payments that would be due under an agricultural finance lease with the total amount of payment that would be due under a loan to purchase the property does not account for the relative tax advantages to the lessee of lease and loan transactions. (Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)