What is financial leasing?

Financial leasing is a lease of an asset with subsequent purchase of the asset. The Lessee is provided for long-term use of the subject and pays leasing instalments in return. The subject remains property of the Lessor; upon expiration of the leasing contract and payment of the residual value (usually a symbolic amount of 1.000 CZK plus VAT), the subject becomes property of the Lessee.

The Income Tax Act specifies the minimum duration of the leasing contractual period depending on the depreciation class of the subject. The minimum duration is three years.

Financial leasing was the most frequent type of leasing transactions till the end of 2008. Currently, its share on the market is approx. 40 %.

What is operative leasing?

Substance of operative leasing is to provide services, not to enable investment. It includes an agreed-upon extent of additional services related to the subject. Contracts for operative leasing are typically entered into for rather short periods of time. Such periods are usually shorter than the life-cycle / tax depreciation period of the subject. Upon expiration of the contract, the subject of the leasing remains property of the leasing company (unless a different agreement is entered into).

What is sale-and-lease-back?

Sale-and-lease-back is a specific from of financial leasing. The leasing company purchases the subject from its owner and subsequently leases the same subject to the original owner. It is not a classical three-party relationship as in classical financial leasing: it includes only two parties, UniCredit Leasing and the Lessee, which is the seller at the same time.

Sale-and-lease-back is usually used as a tool of getting financial means for further investments.

What are fixed leasing instalments?

Fixed leasing instalments remain the same for the entire leasing period.

What are variable leasing instalments?

Amount of variable leasing instalments is calculated on the basis of a variable interest rate, i.e., the amount my be increased or reduced within the leasing period.

How to duly terminate a leasing contract?

Leasing contracts are duly terminated by employees of the Autoleasing Administrative Department; name and telephone number of the employee you should contact is written on the payment schedule you receive when taking over the subject of the leasing.

How to prematurely terminate a leasing contract?

1. File an Application for Premature Termination of Leasing Contract. Send the Application by mail to Správní oddělení AL, UniCredit Leasing CZ, a.s., Radlická 14/3201, 150 00 Praha 5 or fax it to +420 257 322 175.

2. Within 5 days from the date we receive your application, you will be sent a calculation of the purchase price of the subject of the leasing.

3. If you agree with the calculated purchase price, you will receive an invoice by return mail. When you pay this amount, you will receive and sign the purchase contract – Agreement on Premature Termination of Leasing Contract

4. If the accident and/or third-party insurance is included in the leasing instalments, it shall become void on the date on which the purchase contract is signed.

5. The fee for premature termination of a financial-leasing contract is 10.000 CZK.

6. The premature termination of a leasing contract is impossible if the last leasing instalment has been paid.

7. If a business prematurely terminates a easing contract, it may have tax consequences. Hence such a step is recommended to be discussed with a tax advisor in advance.

Where can I report change of my identification data occurring during the leasing period?

Such changes are attended by employees of the Autoleasing Administrative Department; name and telephone number of the employee you should contact is written on the payment schedule you receive when taking over the subject of the leasing.

Where can I get a confirmation of claims-free record upon termination of a leasing contract?

Confirmation of the claims-free record will be provided by the insurer of the subject of the leasing.

Where can I get information about time evolution of my leasing contract?

Any and all information concerning your leasing contract, whose subject may be:

• cars or lorries
• copiers
• forklift trucks
• construction machinery
• minilabs
• machining tools
• agricultural machines

are attended by employees of the Autoleasing Administrative Department; name and telephone number of the employee you should contact is written on the payment schedule you receive when taking over the subject of the leasing.

Am I allowed to sublease the subject of the leasing?

Yes, but subject to consent of the UniCredit Leasing subsidiary with which you entered into the respective leasing contract.

Am I allowed to assign the leasing contract to a third party?

Yes, you can. The existing Lessee will file with the respective UniCredit Leasing subsidiary an Application for Consent to Assign Rights and Obligations to a New Lessee. At the same time, identification data of the assignee must be submitted and its financial results for the last year. If and when the Application is approved, a "Contract on Assignment of Rights and Obligations" will be signed by all three parties; a prerequisite for signing such a contract is that all overdue debts have been paid.

Can I apply for postponement of leasing instalments payment?

Yes, you can. Such an application is to be send in writing to:

Contact:

UniCredit Leasing CZ, a.s., Autoleasing Administrative Department

Stanislava Semorádová - tel.: +420 257 091 218

Radlická 14/3201

150 00 Praha 5

A prerequisite for consent to such a postponement is that all overdue debts to UniCredit Leasing have been paid.

How UniCredit Leasing helps its clients in case of claims to leasing subject?

The basic procedure for complaints and claims is defined in General Conditions – client is authorised, without our awareness, to file claims by the seller. If the client informs us in writing on pending claim process, we would prepare special proxy for claims resolution. In case the client does not agree with the seller on claims resolution and asks UniCredit Leasing for help, we would mediate meeting of the client and the seller with our participation and we try to find solutions jointly. We attempt to find solution acceptable for all participating parties.