Why Do I Need A Disclosure?
New York, California, Florida, Georga, Kansas and Utah implemented mandatory disclosures for all Installment Sale and $1 Purchase Option transactions. A Disclosure Form is NOT required on an FMV transaction.
It's important to note that the Disclosure Form is only required on $1 out leases where the corporate business address is in CA, FL, GA, KS, NY, UT. Equipment location does NOT matter; only the company's business address (AKA, the HQ address/credit approval address)
Each non-FMV transaction will require attention to the applicable Disclosure Law.
Failure to comply with Disclosure Law requirements (as per below) will result in the deal being rejected.
How Can I Avoid A Disclosure?
Change the Lease Program from $1 OUT to FMV on the Payment Details Page.
If the customer is adamant that the lease must be $1OUT, we can utilize the options below. This will require a Lease Exception Approval to use a different bank but our other options are:
For FL, GA, KS, UT
Wells Fargo accepts XBS Private Label forms.
Requirements:
Reach out to your Wells inside sales contact who will provide you with the appropriate $1-out addendum. This addendum will include the interest rate but does not disclose any other transactional details.
For CA and NY
No Disclosure form required when using FCB (bank-regulated).
Forms used: FBC XBS Private Label form. The variance to standard XBS Private Label forms is that FCB is listed as Lessor/Owner.
Name of FCB Document | Definition |
1A - FCB XBS CPR Agreement (Equipment & Service) | NY or CA Equipment and Service Transactions |
1B - FCB XBS Lease Agreement (Equipment Only) | NY or CA Equipment Only Transactions |
2A - FCB XBS $1 PO Addendum | NY or CA $1 Out Addendum |
2B - FCB XBS Software Products and $1 PO | NY or CA $1 Out Addendum for Software Product/ Services |
ALL NY - FCB XBS New York Addendum | All $1 out NY Transactions |
ALL SLG - FCB XBS Non-Appropriation | All SLG Transactions |
Please email XFSNYDisclosure@Xerox.com for general assistance and for the following instances.
Transactions over $100k
When an XFS/PEAC Upgrade exists
If you feel your customer should remain with XFS/PEAC