12 CFR 714.5
§ 714.5 What is required if you rely on an estimated residual value greater than 25% of the original cost of the leased property?
United States · 12 CFR — Banks and Banking · Status: effective
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- Citation
- 12 CFR 714.5, § 714.5 What is required if you rely on an estimated residual value greater than 25% of the original cost of the leased property?, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/48624
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Full text
If the amount of the estimated residual value you rely upon to satisfy the full payout lease requirement of § 714.4(b) exceeds 25% of the original cost of the leased property, a financially capable party must guarantee the excess. The guarantor may be the manufacturer. The guarantor may also be an insurance company with an A.M. Best rating of at least a B + , or with at least the equivalent of an A.M. Best B + rating from another major rating company. You must obtain or have on file financial documentation demonstrating that the guarantor has the resources to meet the guarantee.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.