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Understanding a Commercial Vehicle Lease Agreement form is crucial for anyone looking to lease a vehicle for business purposes, whether you are a large company or a small operator. This type of agreement outlines essential details between the Lessor (the party leasing the vehicle) and the Lessee (the party using the vehicle), ensuring both parties are aware of their rights and responsibilities. Key components of the document include the description of the leased vehicles, terms of lease, payment responsibilities, maintenance obligations, and necessary insurance coverage. Moreover, adherence to federal and state regulations is emphasized, with clauses addressing liability and safety standards, particularly aimed at ensuring public service transport complies with industry norms. The Lessee takes on significant responsibilities, such as operating, maintaining, and insuring the vehicles while also guaranteeing compliance with various legal stipulations. Any deviation from this agreement can result in penalties or termination, highlighting its importance in protecting both the Lessor’s and Lessee’s interests. By familiarizing yourself with this form, you can navigate the leasing process with clarity and confidence.

Commercial Vehicle Lease Agreement Example

Rev. 4/11

VEHICLE LEASE AGREEMENT

This lease, made and entered into this

 

day of

 

, 20__,

between

 

 

 

 

 

, hereinafter referred to as

“Lessor”, and

 

 

 

 

,

hereinafter

referred to as “Lessee.” This agreement is a subcontract of the agreement(s) between the North Carolina Department of Transportation (NCDoT) and the Lessor. All other provisions contained in the agreement(s) between the North Carolina Department of Transportation and the Lessor, the Federal Transit Administration (FTA) Master Agreement (16) dated October 1, 2009, the State Management Plan for Federal and State Transportation Programs, and any subsequent amendments or revisions thereto, are herein incorporated by reference.

WITNESSTH:

Article I

Leased Vehicles: The Lessor hereby leases to the Lessee the vehicle(s) described in Exhibit 1 attached herewith and made a part hereof (hereinafter referred to as vehicle(s) upon the conditions and covenants set forth below). The vehicles shall be operated by the Lessee to serve the best interest and welfare of the Lessor and the public. The vehicles shall be maintained and operated in a manner that will provide the maximum amount of safety and protection to the Lessee's employees and passengers. The Lessee shall adhere to all drivers' license requirements set forth by the State and Federal governments. (Commercial Driver's License is required for all vehicles with a capacity of 16 or more passengers, including the driver). The Lessee will be responsible for all fees incurred for the registration (license tag) of the vehicle; form MVR 330, Transfer of Registration, will need to be completed and filed with the N.C. Division of Motor Vehicles (NCDMV). The Lessee shall utilize the Lessor's equipment in accordance with the procedures and guidelines set forth in FTA Circulars 5010.1D, dated November 1, 2008 and 9040.1F, dated April 1, 2007, or any subsequent revisions or amendments thereto, the Lessor description set forth in the Lessor's application and the Transportation Development Plan (TDP), Community Transportation Service Plan (CTSP) or Community Transportation Improvement Plan (CTIP) for

County. The Lessee shall not sublease the Lessor's equipment to another entity without the expressed written consent of the Lessor and the NCDOT/ Public Transportation Division (PTD).

Article II

Terms of Lease and Commencement Date: The term of this lease shall be for

months/years, commencing on

 

, 20___, the date that the vehicle(s) are

placed in service by the Lessee, and continuing until

 

, 20___, or until this

agreement is canceled or terminated in writing by either the Lessor or Lessee, or by mutual consent, with 30 days advance notice. If the Lessor is leasing vehicles to a private operator (the lessee), the term of this lease shall run concurrent with the service agreement. The maximum term of any lease agreement shall not exceed five (5) years. In the event of breach or noncompliance with this agreement, the Lessor may terminate this agreement by giving the Lessee advance written notice. (See Article VII - Federal Requirements)

Article III

Consideration: In consideration for leasing the vehicle(s), the Lessee agrees to pay the

Lessor $ per vehicle for the term of the lease, and the Lessee further agrees to bear all costs of maintenance, operation, and repair of leased vehicle(s) described in Exhibit 1. The Lessee agrees to hold Lessor harmless for any damages arising out of the use, maintenance, or operations of the leased vehicle by the Lessee or any third party for any purpose whatsoever, with the Lessee’s responsibilities more fully described hereinafter.

Article IV

Routine Maintenance and Operation Expenses: The Lessee assumes the full and sole responsibility for maintaining the Lessor's equipment at a high level of cleanliness, safety, and mechanical soundness. The Lessee agrees to pay all charges for gasoline, oil, parts, services used or supplied for the vehicle during the term of this Lease and shall indemnify the Lessor against all liability on such account. Lessor shall not be required to furnish any services, parts/materials, facilities or personnel to make any repairs to or maintain the vehicle(s); this is clearly and entirely the responsibility of the Lessee. The Lessee shall have a Preventive Maintenance Program/Schedule that, at a minimum, meets manufacturer guidelines and recommendations for maintaining vehicles. The Lessee must document and track all vehicle maintenance activities in a Preventive Maintenance Record format. The Preventive Maintenance Guidelines published by the Public Transportation Division or any subsequent Maintenance Program/Record issued by the division is available electronically upon request. The Lessor may require periodic reports on operation or maintenance activities.

The Lessor, the Public Transportation Division, the Federal Transit Administration, or any agent thereof, shall have the right to conduct periodic maintenance inspections for the purpose of confirming the existence, condition, and the proper maintenance of the leased equipment.

Article V

Liability and Insurance: The Lessee assumes all liability regarding the provision of passenger service while utilizing the leased vehicle(s) and agrees to indemnify the Lessor for any losses incurred by the Lessee, or its management, or Board of Directors because of tortuous conduct occurring in the course of the operation of leased vehicle(s). The Lessee will cover its activities and vehicle(s) with insurance sufficient to protect the Lessee, their management and Board of Directors, the Lessor, the Public Transportation Division, and the Federal Transit Administration from any loss whatsoever, in regard to vehicle(s).

The Lessee shall provide a copy of the insurance policy to the Lessor. On an annual basis, proof of adequate insurance shall be provided to the Lessor, the Public Transportation Division or any agent thereof.

Liability Insurance: North Carolina law requires continuous liability coverage to be in effect on the vehicle(s) during the entire time it is registered and the license plate is in your possession. The insurance must be provided by a company that is licensed to do business in the state of North Carolina. The law is designed to compensate accident victims for property losses and personal injuries and is designed for the Lessee’s protection.

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Fire and Other Casualty Insurance: The Lessee, at its own cost and expense, shall keep the vehicle(s) insured against loss or damage by fire or other risk now or hereinafter embraced by the term “comprehensive and collision coverage.” The coverage shall be sufficient to create and assure a fund to be used to replace or repair the vehicle(s) in the event that damage or destruction necessitates the same. The Lessee shall be responsible for protecting the vehicle(s), based on the current market value, by maintaining adequate insurance throughout the lease period for the equipment. Failure of the Lessee to provide adequate insurance shall be considered a breach of this agreement and, after notification by the Lessor, may result in termination of this agreement.

The Lessee agrees to notify the Lessor immediately when any vehicle is withdrawn from service due to casualty loss. Fair market value shall be deemed to be equal to the damages paid by the Lessee's insurance carrier or from a self-insured reserve account. Lessor has no obligation for any loss in regard to the vehicle(s).

In no event shall salvage value be considered as fair market value for project equipment.

Article VI

Training: The Lessee assures that its vehicle operators are properly trained on vehicle operation and the correct use of special equipment, such as, but not limited to, wheelchair lift equipment and wheelchair tie-down mechanisms and restraints. The Lessor will provide proof of such training upon request.

Article VII

Leasing to a Private Operator: If the Lessee is a private operator under contract by a service agreement with the Lessor, all references in the service agreement, dated

,are hereby incorporated by reference as is this lease agreement incorporated by reference into the service agreement. The monetary consideration, indicated in Article III, may be waived.

Article VIII

FEDERAL/STATE REQUIREMENTS AND SPECIAL CONDITIONS

Because the project activities performed by grant recipients, subrecipients, or extended through to a lower tier contract or agreement must be carried out in accordance with the Master Agreement, the applicable Federal and State requirements and conditions must be included in this agreement. The Lessee is responsible under federal law to comply with these requirements including, but not limited to, the following:

Federal Changes - The Lessee understands that any State or Federal laws, regulations, policies, and related administrative practices applicable to this lease agreement may be modified, amended or promulgated from time to time during the term of this agreement. The Lessee agrees and shall comply with the most recent of such Federal requirements that will govern this agreement at any particular time, unless the Federal Government determines otherwise. Likewise, new Federal laws, regulations, policies and administrative practices may be established after this agreement is executed and may apply to this agreement. The Lessee's failure to so comply shall constitute a material breach of this agreement. The following identifies, but is not limited to, the federal requirements that shall apply to this agreement.

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Conflict of Interest - No employee, officer, board member, or agent of the Lessee shall participate in the selection, award, or administration of a contract supported by State and/or Federal Transit Administration (FTA) funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when the employee, officer, board member, or agent, any member of his or her immediate family, his or her partner, or an organization that employs, or is about to employ any of the above, has a financial or other interest in the firm selected for award.

Lobbying - Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, as amended by the Lobbying Disclosure Act of 1995, PL 104-65 (2 U.S.C. §1601,et seq.). Lessee agrees that it will not use any funds for Lobbying, 49 CFR part 20, “New Restrictions on Lobbying.” Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S. C. 1352. Each tier shall comply with Federal statutory provisions or the extent applicable prohibiting the use of Federal assistance funds for activities designed to influence congress to a State legislature on legislation or appropriations, except through proper official channels. Each tier shall also disclose the name of any registrant under the Lobbying Disclosure Act of 1995 who has made lobbying contacts on its behalf with non-Federal funds with respect to that Federal contract, grant or award covered by 31 U.S.C. 1352. Such disclosures are forwarded from tier to tier up to the recipient.

Debarment and Suspensions - This agreement is a covered transaction for purposes of 2 CFR Part 1200, which adopts and supplements the provisions of U.S. Office of Management and Budget (U.S. OMB) “Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” 2 CFR Part 180. As such, the Lessor is required to verify that none of the third party contractors, (Lessee), its principals, as defined at 2 CFR 180.995, or affiliates, as defined at 2 CFR 180.905, are excluded or disqualified as defined at 2 CFR 180.940, 180.935 and 180.945.

The Lessee is required to comply with 2 CFR 180, Subpart C and must include the requirement to comply with 2 CFR 180, Subpart C in any lower tier covered transaction it enters into.

By signing and submitting this agreement, the Lessee certifies as follows:

The certification in this clause is a material representation of fact relied upon by the Lessor. If it is later determined that the Lessee knowingly rendered an erroneous certification, in addition to remedies available to the Lessor, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The Lessee agrees to comply with the requirements of 2 CFR 180, Subpart C while this agreement is valid and throughout the period of this agreement. The Lessee further agrees to include a provision requiring such compliance in its lower tier covered transactions.

The Lessor will be reviewing all third party contractors (Lessees) under the Excluded Parties Listing System at http://epls.gov/ before entering into any contracts.

No Federal Government Obligations to Third Parties - The Lessee acknowledges and agrees that, notwithstanding any concurrence by Federal and/or State Government in or approval of the solicitation or award of the underlying agreement, absent the express written consent by Federal and/or State Government, Federal and State Governments are not parties to this agreement and shall not be subject to any obligations or liabilities to the Lessee, or any other party (whether or not a party to that agreement) pertaining to any matter resulting from the underlying agreement.

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Civil Rights:

(1)Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended,

42 U.S.C. § 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. § 6101 et seq., section 202 of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101, and Federal transit law at 49 U.S.C. § 5332, the Lessee agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, or disability. In addition, the Lessee agrees to comply with applicable Federal implementing regulations and other implementing requirements FTA may issue.

(a)The third party Lessee and all lower tiers shall comply with all provisions of FTA Circular 4701.1A, “Title VI and Title VI Dependent Guidelines for Federal Transit Administration recipients”, May 13, 2007.

(2)Equal Employment Opportunity - The following equal employment opportunity requirements apply to the underlying contract:

(a)Race, Color, Creed, National Origin, Sex - In accordance with Title VII of the Civil Rights Act, as amended, 42 U.S.C. § 2000e, and Federal transit laws at 49 U.S.C. § 5332, the Lessee agrees to comply with all applicable equal employment opportunity requirements of U.S. Department of Labor (U.S. DOL) regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq., (which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000e note), and with any applicable Federal statutes, executive orders, regulations, and Federal policies that may in the future affect construction activities undertaken in the course of the Project. The Lessee agrees to take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, national origin, sex, or age. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. In addition, the Lessee agrees to comply with any implementing requirements FTA may issue.

(b)Equal Employment Opportunity Requirements for Construction Activities. For activities determined by the U.S. Department of Labor (U.S. DOL) to qualify as “construction,” the Lessee agrees to comply and assures the compliance of each sub- lessee at any tier of the Project, with all applicable equal employment opportunity requirements of U.S. DOL regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq., which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order No. 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000(e) note, and also with any Federal laws, regulations, and directives affecting construction undertaken as part of the Project.

(3)Nondiscrimination on the Basis of Age – The Lessee agrees to comply with all applicable requirements of the Age Discrimination Act of 1975, as amended, 42 U.S.C. §§ 6101 et seq., and with implementing U.S. Health and Human Services regulations, “Nondiscrimination on the Basis of Age in Programs or Activities Receiving Federal Financial Assistance, 45 C.F.R. Part 90, which prohibit discrimination against individuals on the basis of age.

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The Age Discrimination in Employment Act (ADEA) 29 U.S.C. §§ 621 through 634 and with implementing U.S. Equal Employment Opportunity Commission (U.S. EEOC) regulations, “Age Discrimination in Employment Act,” 29 C.F.R. Part 1625.

(4)Access for Individuals with Disabilities - The Lessee agrees to comply with 49 U.S.C. § 5301(d), which states the Federal policy that elderly individuals and individuals with disabilities have the same right as other individuals to use public transportation services and facilities, and that special efforts shall be made in planning and designing those services and facilities to implement transportation accessibility rights for elderly individuals and individuals with disabilities. The Lessee also agrees to comply with all applicable provisions of section 504 of the Rehabilitation Act of 1973, as amended, with 29 U.S.C. § 794, which prohibits discrimination on the basis of disability;

with the Americans with Disabilities Act of 1990 (ADA), as amended, 42 U.S.C.

§§12101 et seq., which requires that accessible facilities and services be made available to individuals with disabilities; and with the Architectural Barriers Act of 1968, as amended, 42 U.S.C. §§ 4151 et seq., which requires that buildings and public accommodations be accessible to individuals with disabilities. In addition, the Lessee agrees to comply with applicable Federal regulations and directives and any subsequent amendments thereto, except to the extent the Federal Government determines otherwise in writing, as follows:

(1)U.S. DOT regulations “Transportation Services for Individuals with Disabilities (ADA)” 49 C.F.R. Part 37;

(2)U.S. DOT regulations “Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance,” 49 C.F.R. Part 27;

(3)Joint U.S. Architectural and Transportation Barriers Compliance Board (U.S. ATBCB) U.S. DOT regulations, “Americans with Disabilities (ADA) Accessibility Specifications for Transportation Vehicles,” 36 C.F.R. Part 1192 and 49 C.F. R. Part 38;

(4)U.S. DOJ regulations “Nondiscrimination on the Basis of Disability in State and Local Government Services,”28 C.F.R. Part 35;

(5)U.S. DOJ regulations “Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities.” 28 C.F.R. Part 36;

(6)U.S. GSA regulations “Accommodations for the Physically Handicapped,” 41 C.F.R. Subpart 101-19;

(7)U.S. Equal Employment Opportunity Commission, “Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act,” 29 C.F.R. Part 1630;

(8)U.S. Federal Communications Commission regulations “Telecommunications Relay Services and Related Customer Premises Equipment for the Hearing and Speech Disabled,” 49 C.F.R. Part 64, Subpart F;

(9)U.S. Architectural and Transportation Barriers Compliance Board regulations, “Electronic and Information Technology Accessibility Standards.” 36 C.F.R. Part 1194;

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(10)FTA regulations, "Transportation of Elderly and Handicapped Persons," 49 C.F.R. part 609; and

(11)Federal civil rights and nondiscrimination directives implementing the foregoing regulations.

(5)Access to Services for Persons with Limited English Proficiency. The Lessee agrees to comply with Executive Order No. 13166,"Improving Access to Services for Persons with Limited English Proficiency," 42 U.S.C. § 2000d-1 note, and U.S. DOT Notice, "DOT Policy Guidance Concerning Recipients’ Responsibilities to Limited English Proficiency (LEP) Persons," 70 Fed. Reg. 74087, December 14, 2005.

(6)Environmental Justice. The Lessee agrees to comply with the policies of Executive Order No. 12898, "Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations," 42 U.S.C. § 4321 note.

(7)Drug or Alcohol Abuse-Confidentiality and Other Civil Rights Protections. To the extent applicable, the Lessee agrees to comply with the confidentiality and other civil rights protections of the Drug Abuse Office and Treatment Act of 1972, as amended, 21 U.S.C. §§ 1101 et seq., with the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970, as amended, 42 U.S.C. §§ 4541 et seq., and with the Public Health Service Act of 1912, as amended, 42 U.S.C. §§ 201 et seq., and any amendments to these laws.

(8)Other Nondiscrimination Statutes. The Lessee agrees to comply with all applicable requirements of any other nondiscrimination statute(s) that may apply to this Contract.

(9)The Lessee also agrees to include these requirements in each subcontract financed in whole or in part with Federal assistance provided by FTA, modified only if necessary to identify the affected parties.

Clean Air Act –

(a)The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to Section 306 of the Clean Air Act as amended, 42 U.S.C. § 7414 as amended and other applicable provisions of the Clean Air Act, as amended, 42 U.S.C. §§ 7401 through 7671q. The Lessee agrees to report each violation to the Lessor and understands and agrees that the Lessor will, in turn, report each violation as required to assure notification to FTA and the appropriate EPA Regional Office.

(b)The Lessee also agrees to comply with the applicable requirements of section 176(c) of the Clean Air Act, 42 U.S.C. § 7506(c), consistent with the joint FHWA/FTA document, “Interim Guidance for Implementing Key SAFETEA-LU Provisions on Planning, Environment, and Air Quality for Joint FHWA/FTA Authorities,” dated September 2, 2005, and any subsequent applicable Federal directives that may be issued; with

U.S. EPA regulations, "Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Developed, Funded or Approved Under Title 23 US.C. or the Federal Transit Act," 40 C.F.R. Part 51, Subpart T; and "Determining Conformity of Federal Actions to State or Federal Implementation Plans," 40 C.F.R. Part 93, and any subsequent Federal conformity regulations that may be promulgated. To support the requisite air quality conformity finding for the Project, the Lessee agrees to implement each air quality mitigation or control measure incorporated in the Project. The Lessee further agrees that any Project identified in an applicable State Implementation Plan (SIP) as a Transportation Control Measure will be wholly consistent with the design concept and scope of the Project described in the SIP.

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(c)The Lessee also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal Assistance provided by FTA.

Clean Water –

(a)The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to Section 508 of the Clean Water Act, as amended, 33 U.S.C. § 1368,

and other applicable requirements of the Clean Water Act, as amended, 33 U.S.C.

§§1251 through 1377, The Lessee agrees to report each violation as required to assure notification to FTA and the appropriate EPA Regional Office.

(b)The Lessee also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FTA.

Environmental Protection - The Lessee agrees to comply with all applicable requirements of the National Environmental Policy Act of 1969, as amended 42 U.S.C. subsection 4321 et seq. in accordance with Executive Order No. 12898, “Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations,” 59 Fed. Reg. 7629, Feb. 16, 1994, FTA statutory requirements on environmental matters at 49 U.S.C. section 5324(b); Council on Environmental Quality regulations on compliance with the National Environmental Policy Act of 1969, as amended, 40 C.F.R. Part 1500 et seq. and joint FHWA FTA regulations, “environmental Impact and Related procedures,” 23 C.F.R. Part 771 and 49 C.F.R. Part 622; and when promulgated, FHWA/FTA joint regulations, "NEPA and Related Procedures for Transportation Decision-making, Protection of Public Parks, Wildlife and Waterfowl Refuges, and Historic Sites," 23 C.F.R. Part 1420 and 49 C.F.R. Part 623. As a result of enactment of 23 U.S.C. §§ 139 and 326 as well as amendments to 23 U.S.C. § 138, environmental decision- making requirements imposed on FTA projects to be implemented consistent with the joint FHWA/FTA final guidance, “SAFETEA-LU Environmental Review Process (Public Law 109-59), “71 Fed. Reg. 66576 et seq. November 15, 2006 and any subsequent applicable Federal directives that may be issued, except to the extent that FTA determines otherwise in writing.

Energy Conservation - The Lessee agrees to comply with mandatory standards and policies relating to energy efficiency that are contained in the state energy conservation plans issued in compliance with the Energy Policy and Conservation Act, 42 U.S.C. Sect. 6321 et seq.

Recycled Products - To the extent possible the contractor agrees to comply with U. S. Environmental Protection Agency (U.S. EPA), “Comprehensive Procurement Guidelines for Products Containing Recovered Materials,” 40 CFR Part 247, which implements section 6002 of the Resource Conservation and Recovery Act (RCRA), as amended, 42 U.S.C. 6962. The contractor agrees to provide competitive preference for products and services that conserve natural resources, protect the environment and are energy efficient, except to the extent that the Federal Government determines otherwise in writing.

These items include, but may not be limited too:

Paper and paper products, excluding building and construction paper grades.

Vehicular products:

(a)Lubricating oils containing re-refined oil, including engine lubricating oils, hydraulic fluids, and gear oils, excluding marine and aviation oils.

(b)Tires, excluding airplane tires.

(c)Reclaimed engine coolants, excluding coolants used in non- vehicular applications.

(d)Rebuilt vehicular parts.

Transportation products:

(a)Traffic barricades and traffic cones used in controlling or restricting vehicular traffic.

(b)Parking stops made from concrete or containing recovered plastic or rubber.

(c)Channelizers containing recovered plastic or rubber.

(d)Delineators containing recovered plastic, rubber, or steel.

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(e)Flexible delineators containing recovered plastic.

Miscellaneous products:

(a)Pallets containing recovered wood, plastic, or paperboard.

(b)Sorbents containing recovered materials for use in oil and solvent clean-ups and as animal bedding.

(c)Industrial drums containing recovered steel, plastic, or paper.

(d)Awards and plaques containing recovered glass, wood, paper, or plastic.

(e)Mats containing recovered rubber and/or plastic.

(f)(1) Non-road signs containing recovered plastic or aluminum and road signs containing recovered aluminum.

(2) Sign supports and posts containing recovered plastic or steel.

(g)Manual-grade strapping containing recovered steel or plastic.

(h)Bike racks containing recovered steel or plastic.

(i)Blasting grit containing recovered steel, coal and metal slag, bottom ash, glass, plastic, fused alumina oxide, or walnut shells.

Park and recreation products:

(a)Playground surfaces and running tracks containing recovered rubber or plastic.

(b)Plastic fencing containing recovered plastic for use in controlling snow or sand drifting and as a warning/safety barrier in construction or other applications.

(c)Park benches and picnic tables containing recovered steel, aluminum, plastic, or concrete.

(d)Playground equipment containing recovered plastic, steel, or aluminum.

Landscaping products:

(a)Hydraulic mulch products containing recovered paper or recovered wood used for hydroseeding and as an over-spray for straw mulch in landscaping, erosion control, and soil reclamation.

(b)Compost made from yard trimmings, leaves, grass clippings, and/ or food waste for use in landscaping, seeding of grass or other plants on roadsides and embankments, as a nutritious mulch under trees and shrubs, and in erosion control and soil reclamation.

(c)Garden and soaker hoses containing recovered plastic or rubber.

(d)Lawn and garden edging containing recovered plastic or rubber.

(e)Plastic lumber landscaping timbers and posts containing recovered materials.

Non-paper office products:

(a)Office recycling containers and office waste receptacles.

(b)Plastic desktop accessories.

(c)Toner cartridges.

(d)Plastic-covered binders containing recovered plastic; chipboard and pressboard binders containing recovered paper; and solid plastic binders containing recovered plastic.

(e)Plastic trash bags.

(f)Printer ribbons.

(g)Plastic envelopes.

(h)Plastic clipboards containing recovered plastic.

(i)Plastic file folders containing recovered plastic.

(j)Plastic clip portfolios containing recovered plastic.

(k)Plastic presentation folders containing recovered plastic.

(l)Office furniture containing recovered steel, aluminum, wood, agricultural fiber, or plastic.

Termination or Cancellation of Agreement - Termination or cancellation of this agreement, in whole or in part, may be initiated by either the Lessor or the Lessee if it is in the best interest of that party. A notice of termination shall be delivered to the Lessee or Lessor, specifying the extent to which performance of work under this agreement is terminated, and the date upon which such termination becomes effective. A 30-day notice of termination shall be required. If this agreement is terminated, the Lessor shall be liable only for payments under the payment provisions of the contract for services rendered before the effective date of termination.

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Breach of Contract - If the Lessee fails to provide the services within the specified terms of this agreement, or fails to perform within the provisions of this agreement, this agreement may be terminated by reason of default or breach. A written notice of default or breach of agreement shall be presented to the Lessee within three (3) working days of such failure, advising the Lessee that this agreement may be terminated in thirty (30) days.

If it is determined that the Lessee had an excusable reason for not providing service, such as a strike, fire, or flood, events which are not the fault of or are beyond the control of the Lessee, the Lessor may allow the Lessee to continue the service, or treat the termination as a termination for convenience.

The Lessor may allow the Lessee a specified period of time in which to correct the deficiency; the notice of termination will state the time period in which the correction is permitted and other appropriate conditions. If the Lessee fails to remedy to the Lessor's satisfaction the breach or default or any of the terms, covenants, or conditions of this agreement within the specified time period, the Lessor shall have the right to terminate this agreement without any further obligation to Lessee. Any such termination for default shall not in any way operate to preclude the Lessor from also pursuing all available remedies against Lessee and its sureties for said breach or default.

Resolution of Disputes -

Disputes - Disputes arising in the performance of this agreement which are not resolved through discussions by the parties shall be decided in writing by the authorized representative of the Lessor. This decision shall be final and conclusive unless within ten (10) days from the date of receipt of its copy, the Lessee mails or otherwise furnishes a written appeal to the authorized representative of the Lessor. In connection with any such appeal, the Lessee shall be afforded an opportunity to be heard and to offer evidence in support of its position. The decision of the authorized representative of the Lessor shall be binding upon the Lessee and the Lessee shall abide by the decision.

Performance during Dispute - Unless otherwise directed by the Lessor, the Lessee shall continue performance under this agreement while matters in dispute are being resolved.

Claims for Damages - Any claim resulting from injury or damage to person or property

because of any act or omission of the Lessee or of any of his employees, agents or others for whose acts he is legally liable, should be made in writing to the Lessee. The Lessee is responsible for settlement of all such claims.

Remedies - Unless this agreement provides otherwise, all claims, counterclaims, disputes and other matters in question between the Lessor and the Lessee arising out of or relating to this agreement or its breach will be decided by arbitration if the parties mutually agree, or in a court of competent jurisdiction within the County in which the Lessor is located.

Rights and Remedies - The duties and obligations imposed by this agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. No action or failure to act by the Lessor or Lessee shall constitute a waiver of any right or duty afforded any of them under this agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing.

Nonconstruction Employee Protection Requirements - Section 102 of the Contract Work Hours and Safety Standards Act, as amended, 40 U.S.C Sections 327 through 333 are mandated under DOL regulation 29 C.F.R. Section 5.5.

(1) Overtime requirements - No Lessee contracting for any part of the contract work which may

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File Breakdown

Fact Name Description
Parties Involved The lease is between a Lessor and a Lessee, detailing their respective roles.
Governing Law This agreement is governed by the laws of North Carolina.
Lease Duration The lease can last for a maximum of five years and requires notice for cancellation.
Maintenance Responsibility The Lessee is fully responsible for routine maintenance and operational costs.
Insurance Requirements The Lessee must maintain specific insurance coverage, including liability and casualty.
Licensure Compliance The Lessee must adhere to all state and federal driver's license regulations.
Subleasing Prohibition Lessee cannot sublease equipment without written permission from the Lessor.
Federal Compliance Lessee must comply with applicable federal laws, including nondiscrimination and lobbying restrictions.

Guide to Using Commercial Vehicle Lease Agreement

Filling out the Commercial Vehicle Lease Agreement form is a systematic process that ensures clarity and alignment between the Lessor and the Lessee. Preparation is key as both parties will be entering a binding agreement governed by specific terms and conditions. Thus, it is essential to carefully complete each section of the form.

  1. Begin by entering the current date in the space provided as “this day of ______, 20__.”
  2. Fill in your name in the space designated for the “Lessor.”
  3. Enter the name of the “Lessee” in the corresponding area.
  4. In Article I, provide details of the leased vehicle(s) by referencing Exhibit 1. Ensure all relevant vehicle descriptions are accurate.
  5. Specify the total term of the lease in months or years, followed by the commencement date. Use the “commencing on ______, 20___” section for this detail.
  6. Indicate the end date of the lease in the space “until ______, 20___.”
  7. In Article III, state the payment amount per vehicle agreed upon for the lease term.
  8. Affirm that the Lessee understands their responsibilities regarding maintenance and operations in Article IV by ticking or signing as required.
  9. In Article V, provide information about the insurance that the Lessee will maintain, ensuring it meets the state requirements.
  10. In Article VI, assure that your vehicle operators are properly trained and note that documentation of this training will be available upon request.
  11. Review Article VIII to acknowledge the federal and state requirements applicable to the lease agreement, making sure to comply with them.
  12. Finally, sign and date the form as required at the end, making sure to keep a copy for your records.

After completing these steps, both parties should have a clear understanding of their obligations and rights under this agreement. It is recommended to review the finalized document together to ensure mutual consent and accurate representation of each party’s intentions.

Get Answers on Commercial Vehicle Lease Agreement

What is a Commercial Vehicle Lease Agreement?

A Commercial Vehicle Lease Agreement is a legal document that outlines the terms and conditions under which a lessor (the owner) leases a vehicle to a lessee (the user). This agreement specifically regulates the operations, maintenance, and liability associated with using the vehicle. It binds both parties to adhere to various legal requirements, particularly those set forth by the North Carolina Department of Transportation and the Federal Transit Administration. The agreement serves to ensure that the vehicle is used responsibly and in compliance with all applicable laws.

Who is responsible for maintenance and repairs under the lease?

The lessee assumes full responsibility for the maintenance and operation of the leased vehicle. This includes keeping the vehicle clean and in good working condition. The lessee is required to pay for all routine maintenance costs, such as fuel, oil, and repairs. Additionally, the lessee must document all maintenance activities in a preventive maintenance record. The lessor is not obligated to provide any maintenance services, which emphasizes the lessee's duty to ensure the vehicle's safety and reliability.

What happens if the lease agreement needs to be terminated?

Either party—the lessor or the lessee—can terminate the lease agreement with a written notice 30 days in advance. This could be due to various reasons, including a breach of the agreement. If the lessor finds that the lessee has not complied with the terms, they may terminate the lease by giving written notice, allowing time for the lessee to rectify any issues. It's advisable for both parties to be aware of their obligations to avoid potential disputes.

Are there insurance requirements for the lessee?

Yes, the lessee must maintain adequate liability and insurance coverage for the leased vehicle during the lease period. This includes providing proof of insurance to the lessor annually. Liability insurance is required by North Carolina law, ensuring the vehicle is covered for any damages or injuries that may occur during its operation. The lessee must also have comprehensive and collision coverage, protecting against loss or damage to the vehicle itself. Failure to maintain such coverage may result in a breach of the lease agreement.

Can the lessee sublease the vehicle to another party?

No, the lessee cannot sublease the vehicle to another entity without prior written consent from both the lessor and the North Carolina Department of Transportation's Public Transportation Division. This restriction ensures that the lessor retains control over who uses the vehicle, maintaining safety and compliance with legal obligations.

What are the federal and state compliance obligations?

The lessee is obligated to comply with various federal and state laws throughout the duration of the lease. This includes adherence to regulations set forth by the Federal Transit Administration, ensuring non-discrimination in employment practices, and maintaining proper licensing. The lessee must also be aware that any changes to applicable laws while the lease is in effect must be followed. Non-compliance can result in serious consequences, including lease termination.

Common mistakes

Filling out a Commercial Vehicle Lease Agreement can be a complex task, and many people inadvertently make mistakes that could lead to complications down the line. One common error is failing to specify the term of the lease clearly. It is essential to input the exact months or years for which the lease is valid. Leaving this section blank or uncertain can create confusion regarding the timeline and obligations of both the Lessor and Lessee.

Another frequent mistake is not completing the vehicle information accurately. This document refers to specific vehicles by their descriptions or identification numbers. Omitting or misrepresenting this information can cause issues with registration, insurance, or compliance with regulations.

Individuals also often neglect to mention additional responsibilities tied to maintenance and operation expenses. The Lessee is responsible for all costs involved in maintaining the vehicle, which includes fuel, oil, and repairs. If this obligation is not explicitly stated, there could be financial disputes later on.

Many people forget to check the insurance requirements detailed in the agreement. The Lessee needs to provide proof of sufficient coverage, including liability and casualty insurance. A failure to fulfill this requirement can lead to significant financial liability if an accident occurs while the vehicle is in use.

Some individuals do not acknowledge the federal and state requirements that accompany the lease. Understanding these regulations is critical because they dictate how the agreement must be managed. Ignoring them can result in penalties or termination of the lease.

Additionally, it's common for the Lessee to overlook the need for proper documentation regarding vehicle maintenance. Keeping accurate records of all maintenance activities is essential. Without these records, it may be difficult to demonstrate compliance with the lease agreements or guarantee the vehicle's operational condition.

Another mistake involves failing to secure proper driver qualifications. The lease specifies that operators must meet state and federal drivers' license requirements. Without ensuring that all drivers are qualified, the Lessee may expose themselves to legal and operational risks.

Many people also forget to complete the section on subleasing. It’s important for the Lessee to understand that they cannot sublease the vehicle without written consent from the Lessor. Failing to obtain this permission could breach the agreement and lead to consequences.

Some Lessees may misunderstand the termination clause, often neglecting to follow the stipulated notification process. Adhering to the requirement for 30 days advance notice is crucial when terminating the lease. Otherwise, the Lessee may find themselves liable for continued payments.

Finally, one last common oversight is failing to provide all required signatures. If the lease isn't properly signed and dated by both parties, it may not hold up in a legal context. This can lead to confusion about the validity of the agreement itself.

Documents used along the form

The Commercial Vehicle Lease Agreement is an essential document used in various transactions related to the leasing of vehicles. This agreement often requires additional forms and documents to ensure compliance with legal and regulatory standards. Below are several commonly used documents that complement the Commercial Vehicle Lease Agreement.

  • Exhibit 1 - Vehicle Description: This document details the specific vehicles being leased, including make, model, year, and vehicle identification numbers (VIN). It serves to identify the assets involved in the lease.
  • Proof of Insurance: A document showing that the Lessee has secured the necessary insurance coverage for the leased vehicles. This includes liability and comprehensive coverage to protect all parties involved.
  • Maintenance Schedule: A pre-defined schedule outlining the required maintenance tasks for the leased vehicles. This helps ensure that the vehicles are kept in good working condition throughout the lease term.
  • Driver Qualification Form: This form collects information on the drivers who will operate the vehicles. It typically includes verification of valid driver’s licenses and any relevant training certifications.
  • Liability Waiver: A document in which the Lessee acknowledges the inherent risks associated with vehicle operation and agrees to hold the Lessor harmless from any claims arising from the use of the leased vehicles.
  • Service Agreement: This agreement outlines the terms and conditions under which the leased vehicles will be used, including the obligations of both the Lessor and the Lessee in relation to vehicle operation and service provision.
  • Federal Compliance Certification: A certification confirming the Lessee's commitment to adhere to federal regulations applicable to the leasing and operation of vehicles, including grants and funding requirements.
  • Indemnity Agreement: A legal document in which the Lessee agrees to compensate the Lessor for any losses or damages incurred due to the Lessee’s use of the leased vehicles.

Each of these documents plays a crucial role in ensuring that the leasing arrangement is compliant with legal requirements and protects the interests of both parties involved. It is important to consider these forms carefully during the leasing process.

Similar forms

  • Lease Purchase Agreement: This document outlines the terms and conditions for obtaining a vehicle through a lease-purchase structure, emphasizing eventual ownership after the lease period, similar to the lease agreement's focus on vehicle usage and maintenance.
  • Rental Agreement: A rental agreement specifies the terms for renting a vehicle including the duration of the rental, cost, and responsibilities, comparable to the lease agreement that details vehicle operation and maintenance responsibilities.
  • Service Agreement: This document outlines the details between a service provider and client, including tasks to be performed and compensation, similar to how the vehicle lease agreement specifies service and maintenance obligations for the Lessee.
  • Maintenance Agreement: A maintenance agreement defines the terms under which maintenance services will be provided to a vehicle, paralleling the lease agreement where maintenance responsibilities are assigned to the Lessee.
  • Purchase Agreement: This contract establishes the sale of a vehicle, including price and terms, akin to the lease agreement that stipulates terms for using and maintaining the vehicle for the Lessee.
  • Insurance Policy: An insurance policy provides coverage details for a vehicle, including liability and property damage, which aligns with the lease agreement’s requirements for insurance coverage during the lease term.
  • Indemnification Agreement: This document specifies who is responsible for damages or legal liabilities arising from specific actions, similar to the liability and indemnification clauses found within the lease agreement.
  • Contract for Transportation Services: This agreement outlines the terms for transportation services, detailing responsibilities of each party, mirroring the vehicle lease agreement's focus on operational obligations of the Lessee.

Dos and Don'ts

When completing a Commercial Vehicle Lease Agreement form, it's important to follow specific guidelines to ensure everything is in order. Here’s a handy list of what you should and shouldn't do:

  • Do read the entire agreement carefully before filling it out.
  • Do provide accurate information about the vehicles in Exhibit 1.
  • Do ensure you understand the maintenance responsibilities outlined in the agreement.
  • Do submit any required documentation, such as proof of insurance, promptly.
  • Do communicate with the Lessor about any questions or concerns.
  • Don't leave any sections of the form blank unless specifically instructed.
  • Don't sign the agreement without checking all terms and conditions.
  • Don't forget to comply with all local and federal regulations highlighted in the agreement.
  • Don't sublease the vehicle without written consent from the Lessor.
  • Don't neglect to maintain records of all vehicle maintenance activities.

Misconceptions

  • All Commercial Vehicle Lease Agreements are the same. Many people believe that all vehicle lease agreements are identical, but each one can have unique terms and conditions tailored to the specific needs of the parties involved.
  • The Lessee has no responsibilities for maintenance. It is a common misconception that the Lessor takes care of all maintenance. In reality, the Lessee is fully responsible for maintaining the leased vehicle in a safe and clean condition, including routine upkeep and repairs.
  • Insurance coverage is optional. Some think that having insurance is merely a recommendation. In truth, maintaining adequate insurance is a requirement of the lease, and failure to do so can lead to termination of the agreement.
  • The term of the lease can extend indefinitely. People often assume that lease agreements can remain in effect as long as both parties desire. However, these leases generally have a maximum term of five years unless renewed or modified.
  • The Lessor cannot impose additional requirements. Many believe that once a lease is signed, it is static. Yet, the leasing agreement can be subject to federal or state requirements that may change over time, and the Lessee is obligated to comply with these updates.
  • Lessee can freely sublease the vehicle. There is a notion that it's acceptable for the Lessee to sublease the vehicle to others without restriction. In reality, subleasing typically requires explicit consent from the Lessor.
  • Training requirements are optional. Some may think that they can operate the vehicle without formal training. However, ensuring that all operators are adequately trained is a critical component of safety and compliance with the lease terms.

Key takeaways

When filling out and using the Commercial Vehicle Lease Agreement form, consider the following key takeaways:

  • Identify Parties: Clearly define the Lessor and Lessee, including their legal names and any relevant details.
  • Document Vehicle Information: Attach an Exhibit 1 that specifies all leased vehicles, including make, model, and identification numbers.
  • Duration of Lease: Specify the lease term, ensuring it does not exceed five years, and note the start and end dates accurately.
  • Insurance Requirements: The Lessee must maintain continuous liability and fire insurance coverage on the leased vehicles throughout the lease term.
  • Maintenance Obligations: The Lessee is responsible for all maintenance, operation, and repair costs related to the leased vehicles.
  • Compliance with Regulations: Understand that adherence to federal and state regulations is critical. Noncompliance could lead to a breach of the agreement.
  • Training for Operators: Ensure that all vehicle operators are properly trained, particularly in operating any special equipment included with the vehicles.