Euromoney Legal Training

Course overview

This three-day course focuses on the major legal issues and procedures that exist in the area of leasing. Designed for professionals who are newly involved in leasing as well as those with some experience of the area, the course provides an opportunity to develop the skills and knowledge necessary to compete effectively in today’s leasing market.

The course aims to provide you with a comprehensive overview of leasing as a method of finance, demonstrating the benefits of lease transactions for both the lessor and lessee.

Summary of course content

• Understand the benefits of leasing and other forms of asset finance
• Appreciate the accounting and tax considerations of finance and operating leases
• Enhance your comprehension of the importance of cash flows in lease evaluation
• Review the fundamental principles of credit risk assessment
• Obtain an overview of the legal background to leasing
• Consider future developments

Who should attend this training course?

• Executives from:
  - Banks
  - Leasing companies
  - Finance houses
  - Equipment manufacturers
• Risk managers
• Asset managers
• Sales personnel
• Financial controllers
• Project finance managers
• Business development managers
• Equipment vendors
• Corporate financiers
• Bankers
• Lessors
• Lessees
• Advisors

 

 

 

 

Supporting publication

Day 1

Registration commences at 8:30

Programme runs from 9:00 - 5:00 daily

Introduction to leasing

• Development of finance leasing
• Other asset finance products
• The leasing market

Interest rates

• Simple/compound
• APR, IRR, etc

Time value of money

• Net present value
• Mechanics of discounted cash flow

Exercise: TVM

Exercise: Structuring leases with DCF

Basic lease evaluation

• Lessor funding costs
• Rental profiles
• Calculating rentals
• Residuals and balloons
• Commissions and subsidies

Tax considerations

• Accounting and tax depreciation
• Tax allowances
• Tax deferral
• Deferred tax accounting
• Value added tax
• Cross-border tax issues

Day 2

Lessor accounting

• Generally accepted accounting principles (GAAP)
• IAS 17, SSAP 21, SFAS 13
• Tax based leases
• Finance and operating leases
• Income allocation
• Accounting and tax depreciation
• Balance sheet presentation

Lessee accounting

• Lessee balance sheet issues
• Finance and operating leases
• Finance lease obligations
• Depreciation

Credit assessment and risk

• Credit scoring
• Financial statements and ratio analysis
• Business risk
• Asset risk
• General risk
• Security

Case study: Credit assessment

Day 3

Legal and documentation

• Legal systems
• Common Law
• Civic Code
• Leasing laws
• Ownership and possession
• Security
• Documentation
• Contract terms and conditions
• Insurance

Case study: Structuring lease rentals

Defaults and problem cases

• Credit control and collections
• Warning signs
• Termination procedures
• Asset repossession and disposal
• Other legal remedies
• Fraud

Case study: Default

Asset management

• Inspection rights
• Residual value calculation
• Return conditions
• Equipment re-marketing
• End of lease arrangements
• Renewal options
• Third party/manufacturer purchase agreements

Case study: Asset management

Introduction to structured finance (big-ticket leasing)

• Cross-border leasing structures
• US leveraged leasing
• Double-dip lease structures
• Defeasance
• Synthetic leasing

Recent developments in the leasing industry

• Impact of accounting developments
• Growth of operating leasing
• The future of finance leasing

Review and questions

• John McGerty

  John McGerty is the Institute of Bankers Ireland’s asset finance and leasing consultant where he has been instrumental in developing and running the certificate course in the asset finance. Previously he worked for ICC Bank PLC, where he was involved in setting up ICC Finance, the bank’s asset finance subsidiary. John also worked for the Bank of Ireland Finance Ltd where he was fully responsible for leasing throughout the branch network.
  
  Over the years he has also worked extensively on an international level putting together leasing feasibility studies and reports for organisations in Poland, Zimbabwe, Uzbekistan, Kyrgyzstan and Kenya. In addition, John has been Chairman of the Irish Finance Houses leasing committee and leaseuropes council member for Ireland. He has been a part-time lecturer at Rathmines College of Commerce and has lectured on leasing at the Irish Management Institute, Trinity College Dublin, the IDI banking programme and in Uganda with the UFC. He was also involved with the publication of Leasing in Ireland and has published various other magazines and newspaper articles on leasing.
  
  John was the co-chairman of the Euromoney 18th Annual World Leasing Convention.

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

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