Bank Leasing Services

Marketing

An equipment lease program is more likely to be successful with a comprehensive marketing and sales plan. The bank can develop and perform the marketing and sales function if it chooses, or it can authorize Phoenix to perform this function with our Full Service Marketing and Sales Program. With the Phoenix program, Phoenix's experienced personnel will contact the bank's commercial customers by direct mail and telephone calls. Other promotions such as invoice mailers and in-bank brochures are available.

Credit Underwriting

The bank sets the credit underwriting standards, including the amount of credit, interest rate, lease term and acceptable collateral.

Documentation

Either Phoenix or the bank can document the lease transactions. Phoenix has the capability to document all types of leases including fair market value, fixed or variable purchase options; and sale/leasebacks.

If Phoenix documents the lease, we will work with the customer and vendors to obtain sufficient documentation to establish the bank's ownership or security interest in the collateral, as applicable. UCC's will be filed in the proper jurisdictions and evidence of insurance will be obtained per bank requirements.

Funding

Once the transaction documents are complete and approved by the bank, the bank funds the lease. If Phoenix prepares the documentation, the bank will be provided with funding instructions indicating what amounts are to be paid to the vendors, Phoenix, lessee and/or other parties, as applicable.

Portfolio Management

Phoenix performs the portfolio management function for the leasing program.

The portfolio management function includes monthly invoicing, posting of payments, maintaining customer accounts, customer service, processing changes to customer accounts, routine collection notices and telephone calls, sales and personal property tax reporting, insurance and UCC monitoring, and management reporting.

If the bank is lessor, Phoenix will provide the bank with monthly journal entries for its financial statement reporting and information for income tax preparation.

At the bank's request, Phoenix can perform collateral evaluation and inspections, default management and collateral remarketing.

Detailed information concerning the portfolio management function is available upon request.

Bank Label or Phoenix Label Program

Bank Label

Under the Bank Label Program, Phoenix will send promotional mailings and invoices under the bank name. Phoenix personnel will identify themselves as representatives of the bank.

Phoenix Label

Under the Phoenix Label Program, Phoenix will be an independent sales and portfolio management organization authorized by the bank.

Bank as Lessor or Phoenix as Lessor

The lessor is the owner of the leased equipment and the lessee is the customer/user. The lessor has the responsibility to collect, report and remit sales and property tax and to account for the equipment on its books as the owner.

Bank as Lessor

Phoenix will provide the bank with monthly journal entries for the bank's general ledger accounting and other information as is necessary for the bank to prepare its financial statements and tax returns. Phoenix will also prepare information so that the bank can file sales and personal property tax returns. If requested, Phoenix will provide the bank with full tax service including signature-ready tax returns, review and protest of assessed values, and audit support.

Phoenix as Lessor

If the bank prefers Phoenix to be the lessor, then Phoenix will document the transaction with Phoenix as lessor and the customer as lessee. Phoenix will provide the bank with a non-recourse installment note with the bank as lender and Phoenix as the non-recourse borrower. The note will be collateralized by the specific lease transaction with all rights of lessor assigned to the bank. The bank will have recourse directly to the lessee and the equipment collateral in the event of a lease default. The bank will not have recourse to Phoenix.