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| Lease
Finance |
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| How
to apply? |
| After having
favorable discussion on the various aspects of the Project particularly on the terms and
conditions of lease financing, a customer may formally apply in specific application form
designed by the Bank. The customer is required to provide detailed information on the
project and its various aspects. After proper appraisal, if found suitable, Bank will draw
terms and conditions of the lease. |
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| Lease
Agreement : |
After sanction of a proposal for lease finance, a
lease agreement will have to be executed between the client and the Bank. The lease
rental, lease deposit etc. stated in the lease agreement shall be calculated on the basis
of the estimated acquisition cost of the equipment which shall be adjusted on the basis of
actual costs and charges at the time of execution. After execution of the agreement, the
Bank will purchase the specified items/ equipments and the customer will be under
obligation to accept the equipment for the specified lease period.
The
customer will be required to make a deposit equivalent to 3 (three) months lease rentals
to the Bank on the date of signing of the lease agreement which shall be refunded to the
client at the expiry of the lease term. |
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| Procurement
and Installation of Lease Equipment : |
Bank will place firm purchase order directly to
the manufacturer / supplier on the basis of terms and conditions embodied in the agreement
between the client and the supplier. The equipment is to be delivered to the selected
location of the client. Bank will make full payment after confirmation of the acceptance
of the equipment by the client.
In
case of imported equipment, Bank will open Letter of Credit in its own name. the Custom
clearance and inland transportation of the equipment to the respective locations shall be
handled by the client with the co-operation of the Bank. All incidental costs in this
regard shall be paid by the Bank and will be included in the acquisition cost of the
equipment.
After
taking delivery of the equipment, the customer will directly install it at his location as
specified in the agreement with the technical assistance of the supplier, if any. |
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| Execution : |
| On lease execution,
the client and the Bank shall enter into an Amendment Lease Agreement reflecting the
actual acquisition cost. At the same time the client will issue the certificate of the
acceptance of equipment and pay the first lease rentals, insurance premium of the 1st
lease year as well as any other charge to the Bank. |
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| Acquisition
Cost : |
| The acquisition
cost shall be the purchase price and all other incidental expenses incurred by the Bank
including financial expenses such as custom duty and other taxes, charges in connection
with opening of L/C, insurance premium, freight, transportation, storage charge etc. |
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| Term
of Lease and Payments There Against : |
The term of lease may be for a period of maximum
5 (five) years during which the lessee will have the exclusive right to use the equipment.
On expiry, the lessee may have the option to renew the lease on a year to year basis at a
predetermined rental or return the equipment to the Bank. Besides the above options, the
lessee may purchase the lease equipment at a reasonable price upon mutual agreement.
Lessee
will pay service charge or project examination fee @0.15% on the sanctioned amount subject
to a minimum Tk. 3,000 and maximum Tk. 10,000 in case of acquisition of Machinery and
Equipments for projects. In case of Automobile, a service charge of Tk. 500 is payable
when the acquisition cost is below Tk. 10.00 lac and an amount of Tk. 1,000 is payable
when the acquisition cost is Tk. 10.00 lac and above.
The
lessee will pay monthly rental in advance starting from the date of execution till end of
lease term. Insurance charges are payable by the lessee at actual. 1st year premium is
payable on the date of execution. |
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