Terms and policy

Rental terms

Definitions

In these general terms, “Book Value” refers to the Financing Partner’s (FP’s) total acquisition cost for the rental object minus depreciation deductions made according to the annuity method, based on paid monthly fees.

1. Limitations of FP’s liability, etc.
This agreement concerns rental. FP’s undertakings as financier are limited to, in accordance with the lessee’s (HM’s) specific instructions, acquiring the rental object from the supplier stated on the front page for rental to HM under the terms of this rental agreement. HM has chosen the rental object and supplier and bears the risk for purchase, function and use.

2. Receipt, inspection, complaints and delivery approval
HM shall at its own expense take necessary measures to be able to receive the rental object when it is made available by FP, the supplier or others. Upon delivery, HM shall immediately inspect the rental object at its own expense, in accordance with the supplier’s provisions and normal industry practice.

As confirmation that the rental object has been received and approved, HM shall without delay sign and submit the delivery approval to FP. If the rental object is defective, HM shall immediately complain in writing to the supplier on FP’s behalf and provide FP with a copy of the complaint.

If FP, due to HM’s delay or negligence, incurs default interest or other costs for which FP is not responsible, such costs shall be compensated by HM. HM shall pay interest at a rate of 2% per month from FP’s payment until HM pays.

HM shall be deemed to have approved delivery by putting the object into use, paying fees, or failing to submit a written complaint within 10 days of delivery.

3. Defects, deficiencies, delay, etc.
FP’s responsibility regarding delivery, warranty, service and related terms is limited to the supplier’s obligations under agreed delivery terms and to the supplier actually fulfilling those obligations.

If the supplier fails to fulfill its obligations, FP may either transfer its rights against the supplier to HM or grant HM power of attorney to act on FP’s behalf, provided HM fulfills its obligations to FP.

HM must fulfill its obligations under this agreement even if defects are claimed or the rental object cannot be used. In case of delivery delay, FP may postpone the rental period accordingly.

All costs related to disputes with the supplier shall be paid by HM. Any compensation from the supplier shall be paid directly to FP, with HM entitled to a corresponding reduction in fees.

4. Termination
HM may terminate this agreement only if FP has obtained the right to terminate vis-à-vis the supplier and repayment and fulfillment of obligations have been secured.

5. Start of rental period, delivery period, etc.
If delivery occurs by the 15th of a calendar month, the rental period begins on the first day of the following month. If delivery occurs on the 16th or later, the rental period begins on the first day of the second following month.

A delivery period fee of 1/30 of the monthly fee per day applies until the rental period begins.

6. Other costs
All costs incurred by FP related to the rental object and not included in the acquisition cost shall be paid by HM upon demand.

7. Change of the monthly fee
The monthly fee is based on the interest rate level in the market where FP refinances itself, using STIBOR 90 days as the reference rate. FP may adjust the monthly fee due to cost changes, currency fluctuations, regulatory changes or if the reference rate is no longer relevant. If the reference rate ceases to exist or no longer reflects FP’s refinancing cost, FP may replace it with its actual refinancing cost.