Go Law

Go Law

Homepage Download Commercial Vehicle Lease Agreement Form in PDF
Jump Links

The Commercial Vehicle Lease Agreement form serves as a vital document for establishing the terms and conditions under which a vehicle is leased from a lessor to a lessee. This agreement outlines essential details, including the parties involved, the specific vehicles being leased, and the duration of the lease. It incorporates various federal and state regulations, ensuring compliance with laws governing transportation services. The lessee is responsible for maintaining the leased vehicles, adhering to safety standards, and covering all operational costs. Additionally, the agreement stipulates insurance requirements, liability provisions, and training obligations for vehicle operators. It emphasizes the importance of maintaining a high standard of vehicle upkeep and safety for both employees and passengers. Furthermore, the agreement includes clauses addressing federal and state requirements, such as nondiscrimination policies and conflict of interest regulations. This comprehensive framework not only protects the interests of both parties but also ensures that public transportation services are delivered effectively and responsibly.

Preview - Commercial Vehicle Lease Agreement Form

Rev. 4/11

VEHICLE LEASE AGREEMENT

This lease, made and entered into this

 

day of

 

, 20__,

between

 

 

 

 

 

, hereinafter referred to as

“Lessor”, and

 

 

 

 

,

hereinafter

referred to as “Lessee.” This agreement is a subcontract of the agreement(s) between the North Carolina Department of Transportation (NCDoT) and the Lessor. All other provisions contained in the agreement(s) between the North Carolina Department of Transportation and the Lessor, the Federal Transit Administration (FTA) Master Agreement (16) dated October 1, 2009, the State Management Plan for Federal and State Transportation Programs, and any subsequent amendments or revisions thereto, are herein incorporated by reference.

WITNESSTH:

Article I

Leased Vehicles: The Lessor hereby leases to the Lessee the vehicle(s) described in Exhibit 1 attached herewith and made a part hereof (hereinafter referred to as vehicle(s) upon the conditions and covenants set forth below). The vehicles shall be operated by the Lessee to serve the best interest and welfare of the Lessor and the public. The vehicles shall be maintained and operated in a manner that will provide the maximum amount of safety and protection to the Lessee's employees and passengers. The Lessee shall adhere to all drivers' license requirements set forth by the State and Federal governments. (Commercial Driver's License is required for all vehicles with a capacity of 16 or more passengers, including the driver). The Lessee will be responsible for all fees incurred for the registration (license tag) of the vehicle; form MVR 330, Transfer of Registration, will need to be completed and filed with the N.C. Division of Motor Vehicles (NCDMV). The Lessee shall utilize the Lessor's equipment in accordance with the procedures and guidelines set forth in FTA Circulars 5010.1D, dated November 1, 2008 and 9040.1F, dated April 1, 2007, or any subsequent revisions or amendments thereto, the Lessor description set forth in the Lessor's application and the Transportation Development Plan (TDP), Community Transportation Service Plan (CTSP) or Community Transportation Improvement Plan (CTIP) for

County. The Lessee shall not sublease the Lessor's equipment to another entity without the expressed written consent of the Lessor and the NCDOT/ Public Transportation Division (PTD).

Article II

Terms of Lease and Commencement Date: The term of this lease shall be for

months/years, commencing on

 

, 20___, the date that the vehicle(s) are

placed in service by the Lessee, and continuing until

 

, 20___, or until this

agreement is canceled or terminated in writing by either the Lessor or Lessee, or by mutual consent, with 30 days advance notice. If the Lessor is leasing vehicles to a private operator (the lessee), the term of this lease shall run concurrent with the service agreement. The maximum term of any lease agreement shall not exceed five (5) years. In the event of breach or noncompliance with this agreement, the Lessor may terminate this agreement by giving the Lessee advance written notice. (See Article VII - Federal Requirements)

Article III

Consideration: In consideration for leasing the vehicle(s), the Lessee agrees to pay the

Lessor $ per vehicle for the term of the lease, and the Lessee further agrees to bear all costs of maintenance, operation, and repair of leased vehicle(s) described in Exhibit 1. The Lessee agrees to hold Lessor harmless for any damages arising out of the use, maintenance, or operations of the leased vehicle by the Lessee or any third party for any purpose whatsoever, with the Lessee’s responsibilities more fully described hereinafter.

Article IV

Routine Maintenance and Operation Expenses: The Lessee assumes the full and sole responsibility for maintaining the Lessor's equipment at a high level of cleanliness, safety, and mechanical soundness. The Lessee agrees to pay all charges for gasoline, oil, parts, services used or supplied for the vehicle during the term of this Lease and shall indemnify the Lessor against all liability on such account. Lessor shall not be required to furnish any services, parts/materials, facilities or personnel to make any repairs to or maintain the vehicle(s); this is clearly and entirely the responsibility of the Lessee. The Lessee shall have a Preventive Maintenance Program/Schedule that, at a minimum, meets manufacturer guidelines and recommendations for maintaining vehicles. The Lessee must document and track all vehicle maintenance activities in a Preventive Maintenance Record format. The Preventive Maintenance Guidelines published by the Public Transportation Division or any subsequent Maintenance Program/Record issued by the division is available electronically upon request. The Lessor may require periodic reports on operation or maintenance activities.

The Lessor, the Public Transportation Division, the Federal Transit Administration, or any agent thereof, shall have the right to conduct periodic maintenance inspections for the purpose of confirming the existence, condition, and the proper maintenance of the leased equipment.

Article V

Liability and Insurance: The Lessee assumes all liability regarding the provision of passenger service while utilizing the leased vehicle(s) and agrees to indemnify the Lessor for any losses incurred by the Lessee, or its management, or Board of Directors because of tortuous conduct occurring in the course of the operation of leased vehicle(s). The Lessee will cover its activities and vehicle(s) with insurance sufficient to protect the Lessee, their management and Board of Directors, the Lessor, the Public Transportation Division, and the Federal Transit Administration from any loss whatsoever, in regard to vehicle(s).

The Lessee shall provide a copy of the insurance policy to the Lessor. On an annual basis, proof of adequate insurance shall be provided to the Lessor, the Public Transportation Division or any agent thereof.

Liability Insurance: North Carolina law requires continuous liability coverage to be in effect on the vehicle(s) during the entire time it is registered and the license plate is in your possession. The insurance must be provided by a company that is licensed to do business in the state of North Carolina. The law is designed to compensate accident victims for property losses and personal injuries and is designed for the Lessee’s protection.

-2-

Fire and Other Casualty Insurance: The Lessee, at its own cost and expense, shall keep the vehicle(s) insured against loss or damage by fire or other risk now or hereinafter embraced by the term “comprehensive and collision coverage.” The coverage shall be sufficient to create and assure a fund to be used to replace or repair the vehicle(s) in the event that damage or destruction necessitates the same. The Lessee shall be responsible for protecting the vehicle(s), based on the current market value, by maintaining adequate insurance throughout the lease period for the equipment. Failure of the Lessee to provide adequate insurance shall be considered a breach of this agreement and, after notification by the Lessor, may result in termination of this agreement.

The Lessee agrees to notify the Lessor immediately when any vehicle is withdrawn from service due to casualty loss. Fair market value shall be deemed to be equal to the damages paid by the Lessee's insurance carrier or from a self-insured reserve account. Lessor has no obligation for any loss in regard to the vehicle(s).

In no event shall salvage value be considered as fair market value for project equipment.

Article VI

Training: The Lessee assures that its vehicle operators are properly trained on vehicle operation and the correct use of special equipment, such as, but not limited to, wheelchair lift equipment and wheelchair tie-down mechanisms and restraints. The Lessor will provide proof of such training upon request.

Article VII

Leasing to a Private Operator: If the Lessee is a private operator under contract by a service agreement with the Lessor, all references in the service agreement, dated

,are hereby incorporated by reference as is this lease agreement incorporated by reference into the service agreement. The monetary consideration, indicated in Article III, may be waived.

Article VIII

FEDERAL/STATE REQUIREMENTS AND SPECIAL CONDITIONS

Because the project activities performed by grant recipients, subrecipients, or extended through to a lower tier contract or agreement must be carried out in accordance with the Master Agreement, the applicable Federal and State requirements and conditions must be included in this agreement. The Lessee is responsible under federal law to comply with these requirements including, but not limited to, the following:

Federal Changes - The Lessee understands that any State or Federal laws, regulations, policies, and related administrative practices applicable to this lease agreement may be modified, amended or promulgated from time to time during the term of this agreement. The Lessee agrees and shall comply with the most recent of such Federal requirements that will govern this agreement at any particular time, unless the Federal Government determines otherwise. Likewise, new Federal laws, regulations, policies and administrative practices may be established after this agreement is executed and may apply to this agreement. The Lessee's failure to so comply shall constitute a material breach of this agreement. The following identifies, but is not limited to, the federal requirements that shall apply to this agreement.

-3-

Conflict of Interest - No employee, officer, board member, or agent of the Lessee shall participate in the selection, award, or administration of a contract supported by State and/or Federal Transit Administration (FTA) funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when the employee, officer, board member, or agent, any member of his or her immediate family, his or her partner, or an organization that employs, or is about to employ any of the above, has a financial or other interest in the firm selected for award.

Lobbying - Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, as amended by the Lobbying Disclosure Act of 1995, PL 104-65 (2 U.S.C. §1601,et seq.). Lessee agrees that it will not use any funds for Lobbying, 49 CFR part 20, “New Restrictions on Lobbying.” Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S. C. 1352. Each tier shall comply with Federal statutory provisions or the extent applicable prohibiting the use of Federal assistance funds for activities designed to influence congress to a State legislature on legislation or appropriations, except through proper official channels. Each tier shall also disclose the name of any registrant under the Lobbying Disclosure Act of 1995 who has made lobbying contacts on its behalf with non-Federal funds with respect to that Federal contract, grant or award covered by 31 U.S.C. 1352. Such disclosures are forwarded from tier to tier up to the recipient.

Debarment and Suspensions - This agreement is a covered transaction for purposes of 2 CFR Part 1200, which adopts and supplements the provisions of U.S. Office of Management and Budget (U.S. OMB) “Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” 2 CFR Part 180. As such, the Lessor is required to verify that none of the third party contractors, (Lessee), its principals, as defined at 2 CFR 180.995, or affiliates, as defined at 2 CFR 180.905, are excluded or disqualified as defined at 2 CFR 180.940, 180.935 and 180.945.

The Lessee is required to comply with 2 CFR 180, Subpart C and must include the requirement to comply with 2 CFR 180, Subpart C in any lower tier covered transaction it enters into.

By signing and submitting this agreement, the Lessee certifies as follows:

The certification in this clause is a material representation of fact relied upon by the Lessor. If it is later determined that the Lessee knowingly rendered an erroneous certification, in addition to remedies available to the Lessor, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The Lessee agrees to comply with the requirements of 2 CFR 180, Subpart C while this agreement is valid and throughout the period of this agreement. The Lessee further agrees to include a provision requiring such compliance in its lower tier covered transactions.

The Lessor will be reviewing all third party contractors (Lessees) under the Excluded Parties Listing System at http://epls.gov/ before entering into any contracts.

No Federal Government Obligations to Third Parties - The Lessee acknowledges and agrees that, notwithstanding any concurrence by Federal and/or State Government in or approval of the solicitation or award of the underlying agreement, absent the express written consent by Federal and/or State Government, Federal and State Governments are not parties to this agreement and shall not be subject to any obligations or liabilities to the Lessee, or any other party (whether or not a party to that agreement) pertaining to any matter resulting from the underlying agreement.

-4-

Civil Rights:

(1)Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended,

42 U.S.C. § 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. § 6101 et seq., section 202 of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101, and Federal transit law at 49 U.S.C. § 5332, the Lessee agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, or disability. In addition, the Lessee agrees to comply with applicable Federal implementing regulations and other implementing requirements FTA may issue.

(a)The third party Lessee and all lower tiers shall comply with all provisions of FTA Circular 4701.1A, “Title VI and Title VI Dependent Guidelines for Federal Transit Administration recipients”, May 13, 2007.

(2)Equal Employment Opportunity - The following equal employment opportunity requirements apply to the underlying contract:

(a)Race, Color, Creed, National Origin, Sex - In accordance with Title VII of the Civil Rights Act, as amended, 42 U.S.C. § 2000e, and Federal transit laws at 49 U.S.C. § 5332, the Lessee agrees to comply with all applicable equal employment opportunity requirements of U.S. Department of Labor (U.S. DOL) regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq., (which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000e note), and with any applicable Federal statutes, executive orders, regulations, and Federal policies that may in the future affect construction activities undertaken in the course of the Project. The Lessee agrees to take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, national origin, sex, or age. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. In addition, the Lessee agrees to comply with any implementing requirements FTA may issue.

(b)Equal Employment Opportunity Requirements for Construction Activities. For activities determined by the U.S. Department of Labor (U.S. DOL) to qualify as “construction,” the Lessee agrees to comply and assures the compliance of each sub- lessee at any tier of the Project, with all applicable equal employment opportunity requirements of U.S. DOL regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq., which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order No. 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000(e) note, and also with any Federal laws, regulations, and directives affecting construction undertaken as part of the Project.

(3)Nondiscrimination on the Basis of Age – The Lessee agrees to comply with all applicable requirements of the Age Discrimination Act of 1975, as amended, 42 U.S.C. §§ 6101 et seq., and with implementing U.S. Health and Human Services regulations, “Nondiscrimination on the Basis of Age in Programs or Activities Receiving Federal Financial Assistance, 45 C.F.R. Part 90, which prohibit discrimination against individuals on the basis of age.

-5-

The Age Discrimination in Employment Act (ADEA) 29 U.S.C. §§ 621 through 634 and with implementing U.S. Equal Employment Opportunity Commission (U.S. EEOC) regulations, “Age Discrimination in Employment Act,” 29 C.F.R. Part 1625.

(4)Access for Individuals with Disabilities - The Lessee agrees to comply with 49 U.S.C. § 5301(d), which states the Federal policy that elderly individuals and individuals with disabilities have the same right as other individuals to use public transportation services and facilities, and that special efforts shall be made in planning and designing those services and facilities to implement transportation accessibility rights for elderly individuals and individuals with disabilities. The Lessee also agrees to comply with all applicable provisions of section 504 of the Rehabilitation Act of 1973, as amended, with 29 U.S.C. § 794, which prohibits discrimination on the basis of disability;

with the Americans with Disabilities Act of 1990 (ADA), as amended, 42 U.S.C.

§§12101 et seq., which requires that accessible facilities and services be made available to individuals with disabilities; and with the Architectural Barriers Act of 1968, as amended, 42 U.S.C. §§ 4151 et seq., which requires that buildings and public accommodations be accessible to individuals with disabilities. In addition, the Lessee agrees to comply with applicable Federal regulations and directives and any subsequent amendments thereto, except to the extent the Federal Government determines otherwise in writing, as follows:

(1)U.S. DOT regulations “Transportation Services for Individuals with Disabilities (ADA)” 49 C.F.R. Part 37;

(2)U.S. DOT regulations “Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance,” 49 C.F.R. Part 27;

(3)Joint U.S. Architectural and Transportation Barriers Compliance Board (U.S. ATBCB) U.S. DOT regulations, “Americans with Disabilities (ADA) Accessibility Specifications for Transportation Vehicles,” 36 C.F.R. Part 1192 and 49 C.F. R. Part 38;

(4)U.S. DOJ regulations “Nondiscrimination on the Basis of Disability in State and Local Government Services,”28 C.F.R. Part 35;

(5)U.S. DOJ regulations “Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities.” 28 C.F.R. Part 36;

(6)U.S. GSA regulations “Accommodations for the Physically Handicapped,” 41 C.F.R. Subpart 101-19;

(7)U.S. Equal Employment Opportunity Commission, “Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act,” 29 C.F.R. Part 1630;

(8)U.S. Federal Communications Commission regulations “Telecommunications Relay Services and Related Customer Premises Equipment for the Hearing and Speech Disabled,” 49 C.F.R. Part 64, Subpart F;

(9)U.S. Architectural and Transportation Barriers Compliance Board regulations, “Electronic and Information Technology Accessibility Standards.” 36 C.F.R. Part 1194;

-6-

(10)FTA regulations, "Transportation of Elderly and Handicapped Persons," 49 C.F.R. part 609; and

(11)Federal civil rights and nondiscrimination directives implementing the foregoing regulations.

(5)Access to Services for Persons with Limited English Proficiency. The Lessee agrees to comply with Executive Order No. 13166,"Improving Access to Services for Persons with Limited English Proficiency," 42 U.S.C. § 2000d-1 note, and U.S. DOT Notice, "DOT Policy Guidance Concerning Recipients’ Responsibilities to Limited English Proficiency (LEP) Persons," 70 Fed. Reg. 74087, December 14, 2005.

(6)Environmental Justice. The Lessee agrees to comply with the policies of Executive Order No. 12898, "Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations," 42 U.S.C. § 4321 note.

(7)Drug or Alcohol Abuse-Confidentiality and Other Civil Rights Protections. To the extent applicable, the Lessee agrees to comply with the confidentiality and other civil rights protections of the Drug Abuse Office and Treatment Act of 1972, as amended, 21 U.S.C. §§ 1101 et seq., with the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970, as amended, 42 U.S.C. §§ 4541 et seq., and with the Public Health Service Act of 1912, as amended, 42 U.S.C. §§ 201 et seq., and any amendments to these laws.

(8)Other Nondiscrimination Statutes. The Lessee agrees to comply with all applicable requirements of any other nondiscrimination statute(s) that may apply to this Contract.

(9)The Lessee also agrees to include these requirements in each subcontract financed in whole or in part with Federal assistance provided by FTA, modified only if necessary to identify the affected parties.

Clean Air Act –

(a)The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to Section 306 of the Clean Air Act as amended, 42 U.S.C. § 7414 as amended and other applicable provisions of the Clean Air Act, as amended, 42 U.S.C. §§ 7401 through 7671q. The Lessee agrees to report each violation to the Lessor and understands and agrees that the Lessor will, in turn, report each violation as required to assure notification to FTA and the appropriate EPA Regional Office.

(b)The Lessee also agrees to comply with the applicable requirements of section 176(c) of the Clean Air Act, 42 U.S.C. § 7506(c), consistent with the joint FHWA/FTA document, “Interim Guidance for Implementing Key SAFETEA-LU Provisions on Planning, Environment, and Air Quality for Joint FHWA/FTA Authorities,” dated September 2, 2005, and any subsequent applicable Federal directives that may be issued; with

U.S. EPA regulations, "Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Developed, Funded or Approved Under Title 23 US.C. or the Federal Transit Act," 40 C.F.R. Part 51, Subpart T; and "Determining Conformity of Federal Actions to State or Federal Implementation Plans," 40 C.F.R. Part 93, and any subsequent Federal conformity regulations that may be promulgated. To support the requisite air quality conformity finding for the Project, the Lessee agrees to implement each air quality mitigation or control measure incorporated in the Project. The Lessee further agrees that any Project identified in an applicable State Implementation Plan (SIP) as a Transportation Control Measure will be wholly consistent with the design concept and scope of the Project described in the SIP.

-7-

(c)The Lessee also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal Assistance provided by FTA.

Clean Water –

(a)The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to Section 508 of the Clean Water Act, as amended, 33 U.S.C. § 1368,

and other applicable requirements of the Clean Water Act, as amended, 33 U.S.C.

§§1251 through 1377, The Lessee agrees to report each violation as required to assure notification to FTA and the appropriate EPA Regional Office.

(b)The Lessee also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FTA.

Environmental Protection - The Lessee agrees to comply with all applicable requirements of the National Environmental Policy Act of 1969, as amended 42 U.S.C. subsection 4321 et seq. in accordance with Executive Order No. 12898, “Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations,” 59 Fed. Reg. 7629, Feb. 16, 1994, FTA statutory requirements on environmental matters at 49 U.S.C. section 5324(b); Council on Environmental Quality regulations on compliance with the National Environmental Policy Act of 1969, as amended, 40 C.F.R. Part 1500 et seq. and joint FHWA FTA regulations, “environmental Impact and Related procedures,” 23 C.F.R. Part 771 and 49 C.F.R. Part 622; and when promulgated, FHWA/FTA joint regulations, "NEPA and Related Procedures for Transportation Decision-making, Protection of Public Parks, Wildlife and Waterfowl Refuges, and Historic Sites," 23 C.F.R. Part 1420 and 49 C.F.R. Part 623. As a result of enactment of 23 U.S.C. §§ 139 and 326 as well as amendments to 23 U.S.C. § 138, environmental decision- making requirements imposed on FTA projects to be implemented consistent with the joint FHWA/FTA final guidance, “SAFETEA-LU Environmental Review Process (Public Law 109-59), “71 Fed. Reg. 66576 et seq. November 15, 2006 and any subsequent applicable Federal directives that may be issued, except to the extent that FTA determines otherwise in writing.

Energy Conservation - The Lessee agrees to comply with mandatory standards and policies relating to energy efficiency that are contained in the state energy conservation plans issued in compliance with the Energy Policy and Conservation Act, 42 U.S.C. Sect. 6321 et seq.

Recycled Products - To the extent possible the contractor agrees to comply with U. S. Environmental Protection Agency (U.S. EPA), “Comprehensive Procurement Guidelines for Products Containing Recovered Materials,” 40 CFR Part 247, which implements section 6002 of the Resource Conservation and Recovery Act (RCRA), as amended, 42 U.S.C. 6962. The contractor agrees to provide competitive preference for products and services that conserve natural resources, protect the environment and are energy efficient, except to the extent that the Federal Government determines otherwise in writing.

These items include, but may not be limited too:

Paper and paper products, excluding building and construction paper grades.

Vehicular products:

(a)Lubricating oils containing re-refined oil, including engine lubricating oils, hydraulic fluids, and gear oils, excluding marine and aviation oils.

(b)Tires, excluding airplane tires.

(c)Reclaimed engine coolants, excluding coolants used in non- vehicular applications.

(d)Rebuilt vehicular parts.

Transportation products:

(a)Traffic barricades and traffic cones used in controlling or restricting vehicular traffic.

(b)Parking stops made from concrete or containing recovered plastic or rubber.

(c)Channelizers containing recovered plastic or rubber.

(d)Delineators containing recovered plastic, rubber, or steel.

-8-

(e)Flexible delineators containing recovered plastic.

Miscellaneous products:

(a)Pallets containing recovered wood, plastic, or paperboard.

(b)Sorbents containing recovered materials for use in oil and solvent clean-ups and as animal bedding.

(c)Industrial drums containing recovered steel, plastic, or paper.

(d)Awards and plaques containing recovered glass, wood, paper, or plastic.

(e)Mats containing recovered rubber and/or plastic.

(f)(1) Non-road signs containing recovered plastic or aluminum and road signs containing recovered aluminum.

(2) Sign supports and posts containing recovered plastic or steel.

(g)Manual-grade strapping containing recovered steel or plastic.

(h)Bike racks containing recovered steel or plastic.

(i)Blasting grit containing recovered steel, coal and metal slag, bottom ash, glass, plastic, fused alumina oxide, or walnut shells.

Park and recreation products:

(a)Playground surfaces and running tracks containing recovered rubber or plastic.

(b)Plastic fencing containing recovered plastic for use in controlling snow or sand drifting and as a warning/safety barrier in construction or other applications.

(c)Park benches and picnic tables containing recovered steel, aluminum, plastic, or concrete.

(d)Playground equipment containing recovered plastic, steel, or aluminum.

Landscaping products:

(a)Hydraulic mulch products containing recovered paper or recovered wood used for hydroseeding and as an over-spray for straw mulch in landscaping, erosion control, and soil reclamation.

(b)Compost made from yard trimmings, leaves, grass clippings, and/ or food waste for use in landscaping, seeding of grass or other plants on roadsides and embankments, as a nutritious mulch under trees and shrubs, and in erosion control and soil reclamation.

(c)Garden and soaker hoses containing recovered plastic or rubber.

(d)Lawn and garden edging containing recovered plastic or rubber.

(e)Plastic lumber landscaping timbers and posts containing recovered materials.

Non-paper office products:

(a)Office recycling containers and office waste receptacles.

(b)Plastic desktop accessories.

(c)Toner cartridges.

(d)Plastic-covered binders containing recovered plastic; chipboard and pressboard binders containing recovered paper; and solid plastic binders containing recovered plastic.

(e)Plastic trash bags.

(f)Printer ribbons.

(g)Plastic envelopes.

(h)Plastic clipboards containing recovered plastic.

(i)Plastic file folders containing recovered plastic.

(j)Plastic clip portfolios containing recovered plastic.

(k)Plastic presentation folders containing recovered plastic.

(l)Office furniture containing recovered steel, aluminum, wood, agricultural fiber, or plastic.

Termination or Cancellation of Agreement - Termination or cancellation of this agreement, in whole or in part, may be initiated by either the Lessor or the Lessee if it is in the best interest of that party. A notice of termination shall be delivered to the Lessee or Lessor, specifying the extent to which performance of work under this agreement is terminated, and the date upon which such termination becomes effective. A 30-day notice of termination shall be required. If this agreement is terminated, the Lessor shall be liable only for payments under the payment provisions of the contract for services rendered before the effective date of termination.

-9-

Breach of Contract - If the Lessee fails to provide the services within the specified terms of this agreement, or fails to perform within the provisions of this agreement, this agreement may be terminated by reason of default or breach. A written notice of default or breach of agreement shall be presented to the Lessee within three (3) working days of such failure, advising the Lessee that this agreement may be terminated in thirty (30) days.

If it is determined that the Lessee had an excusable reason for not providing service, such as a strike, fire, or flood, events which are not the fault of or are beyond the control of the Lessee, the Lessor may allow the Lessee to continue the service, or treat the termination as a termination for convenience.

The Lessor may allow the Lessee a specified period of time in which to correct the deficiency; the notice of termination will state the time period in which the correction is permitted and other appropriate conditions. If the Lessee fails to remedy to the Lessor's satisfaction the breach or default or any of the terms, covenants, or conditions of this agreement within the specified time period, the Lessor shall have the right to terminate this agreement without any further obligation to Lessee. Any such termination for default shall not in any way operate to preclude the Lessor from also pursuing all available remedies against Lessee and its sureties for said breach or default.

Resolution of Disputes -

Disputes - Disputes arising in the performance of this agreement which are not resolved through discussions by the parties shall be decided in writing by the authorized representative of the Lessor. This decision shall be final and conclusive unless within ten (10) days from the date of receipt of its copy, the Lessee mails or otherwise furnishes a written appeal to the authorized representative of the Lessor. In connection with any such appeal, the Lessee shall be afforded an opportunity to be heard and to offer evidence in support of its position. The decision of the authorized representative of the Lessor shall be binding upon the Lessee and the Lessee shall abide by the decision.

Performance during Dispute - Unless otherwise directed by the Lessor, the Lessee shall continue performance under this agreement while matters in dispute are being resolved.

Claims for Damages - Any claim resulting from injury or damage to person or property

because of any act or omission of the Lessee or of any of his employees, agents or others for whose acts he is legally liable, should be made in writing to the Lessee. The Lessee is responsible for settlement of all such claims.

Remedies - Unless this agreement provides otherwise, all claims, counterclaims, disputes and other matters in question between the Lessor and the Lessee arising out of or relating to this agreement or its breach will be decided by arbitration if the parties mutually agree, or in a court of competent jurisdiction within the County in which the Lessor is located.

Rights and Remedies - The duties and obligations imposed by this agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. No action or failure to act by the Lessor or Lessee shall constitute a waiver of any right or duty afforded any of them under this agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing.

Nonconstruction Employee Protection Requirements - Section 102 of the Contract Work Hours and Safety Standards Act, as amended, 40 U.S.C Sections 327 through 333 are mandated under DOL regulation 29 C.F.R. Section 5.5.

(1) Overtime requirements - No Lessee contracting for any part of the contract work which may

-10-

Document Specifics

Fact Name Description
Parties Involved The lease agreement is between a Lessor and a Lessee, with roles clearly defined.
Governing Law This agreement is governed by the laws of North Carolina.
Vehicle Operation The Lessee must operate the leased vehicles in a manner that ensures safety for all passengers.
Insurance Requirements Lessee must maintain continuous liability coverage and provide proof of insurance annually.
Maintenance Responsibilities Lessee is fully responsible for the maintenance and operation of the leased vehicles.
Lease Duration The maximum term for the lease agreement is five years, with specific start and end dates.
Indemnification Clause Lessee agrees to indemnify the Lessor against any damages related to the use of the vehicles.
Compliance with Federal Laws Lessee must adhere to all applicable federal laws and regulations throughout the lease term.

Commercial Vehicle Lease Agreement: Usage Instruction

Filling out the Commercial Vehicle Lease Agreement form is a straightforward process. It involves providing specific information about the parties involved, the vehicle(s) being leased, and the terms of the lease. Follow the steps below to complete the form accurately.

  1. Enter the date on which the lease agreement is being made at the top of the form.
  2. Fill in the name of the Lessor (the party leasing the vehicle) in the designated space.
  3. Provide the name of the Lessee (the party receiving the vehicle) in the appropriate area.
  4. List the vehicle(s) being leased as described in Exhibit 1. Ensure all details are accurate.
  5. Specify the term of the lease in months or years, including the start and end dates.
  6. Indicate the amount to be paid per vehicle for the lease term.
  7. Complete the section on maintenance responsibilities, affirming that the Lessee will handle all costs related to maintenance, operation, and repair of the vehicle(s).
  8. Provide details about the insurance coverage for the vehicle(s), ensuring compliance with state and federal requirements.
  9. Sign and date the form to indicate agreement to the terms outlined.

Learn More on Commercial Vehicle Lease Agreement

What is a Commercial Vehicle Lease Agreement?

A Commercial Vehicle Lease Agreement is a legal document that outlines the terms under which a vehicle is leased from a lessor (the owner) to a lessee (the user). This agreement specifies the responsibilities of both parties, including maintenance, insurance, and compliance with federal and state regulations. It is designed to protect the interests of both the lessor and lessee while ensuring that the vehicle is used safely and effectively.

Who is responsible for vehicle maintenance and operational costs?

The lessee is fully responsible for maintaining the leased vehicle. This includes ensuring the vehicle is clean, safe, and mechanically sound. The lessee must cover all costs associated with maintenance, operation, and repair. A Preventive Maintenance Program must be established, following manufacturer guidelines. Additionally, all maintenance activities should be documented to ensure compliance with the agreement.

What are the insurance requirements for the lessee?

The lessee must maintain continuous liability insurance coverage on the vehicle throughout the lease term. This insurance must be provided by a company licensed to operate in North Carolina. The coverage should protect against any losses incurred during the use of the vehicle. The lessee is also responsible for obtaining fire and comprehensive coverage to protect against damage or loss of the vehicle. Proof of insurance must be submitted to the lessor annually.

Can the lessee sublease the vehicle?

No, the lessee cannot sublease the vehicle to another entity without obtaining written consent from the lessor and the North Carolina Department of Transportation. This restriction is in place to ensure that the vehicle is used according to the terms of the lease and to maintain safety and compliance with regulations.

What happens if the lessee fails to comply with the agreement?

If the lessee breaches any terms of the agreement, the lessor has the right to terminate the lease. The lessor must provide written notice to the lessee in advance. Compliance with all terms is crucial, as failure to adhere to the agreement may result in significant consequences, including potential legal action.

Common mistakes

Filling out a Commercial Vehicle Lease Agreement form can be a straightforward process, but several common mistakes can lead to complications. One frequent error is failing to complete all required fields. Each section of the form is essential for establishing the terms of the lease. Omitting information such as the names of the Lessor and Lessee or the vehicle details can result in delays or disputes later on.

Another mistake is not clearly defining the lease term. The agreement specifies that the lease duration must be explicitly stated, including the start and end dates. Leaving these fields blank or providing vague information can lead to misunderstandings regarding the lease's validity and duration.

Many individuals overlook the importance of accurately detailing the consideration or payment terms in the agreement. This section outlines the financial obligations of the Lessee. If the amount per vehicle is not specified, it may lead to disputes over payment expectations. Ensure that this figure is clear and agreed upon by both parties.

Some Lessees fail to understand their responsibilities regarding maintenance and operation expenses. The agreement places the burden of maintaining the vehicle on the Lessee. Not acknowledging this responsibility can lead to disputes over vehicle condition and associated costs. It is crucial to read and understand these obligations thoroughly.

Insurance requirements are often misunderstood. The Lessee must provide proof of adequate insurance coverage as per the agreement. Neglecting to secure the necessary insurance can be considered a breach of the lease, potentially leading to termination. It is vital to ensure compliance with all insurance obligations outlined in the agreement.

Additionally, Lessees sometimes fail to include necessary documentation, such as proof of operator training or maintenance records. The agreement stipulates that the Lessee must provide evidence of training for vehicle operators. Without this documentation, the Lessor may question the Lessee's compliance with operational standards.

Another common mistake is not adhering to federal and state requirements. The agreement references various regulations that the Lessee must comply with. Ignoring these requirements can lead to serious legal repercussions. It is important to be aware of and follow all applicable laws and guidelines.

Some individuals also neglect to review the conflict of interest provisions in the agreement. Understanding these provisions is essential to avoid potential legal issues. Lessees must ensure that no conflicts exist when entering into the agreement to maintain compliance and integrity.

Finally, failing to provide timely notifications as required by the agreement can lead to complications. For instance, if a vehicle is withdrawn from service, the Lessee must notify the Lessor immediately. Not doing so can result in misunderstandings regarding vehicle status and responsibilities.

By being aware of these common mistakes, individuals can navigate the Commercial Vehicle Lease Agreement process more effectively. Thoroughly reviewing the form and understanding each section can help ensure a smoother leasing experience.

Documents used along the form

When entering into a Commercial Vehicle Lease Agreement, several other forms and documents may be necessary to ensure a comprehensive understanding of the leasing arrangement. Each of these documents serves a specific purpose and can help clarify responsibilities, expectations, and legal obligations for both parties involved. Below is a list of commonly used documents associated with the Commercial Vehicle Lease Agreement.

  • Vehicle Registration Application: This form is required to officially register the leased vehicle with the appropriate state authority, ensuring it is legally recognized for use on public roads.
  • Insurance Certificate: Proof of insurance coverage must be provided to demonstrate that the Lessee has adequate liability and property damage coverage for the leased vehicle.
  • Maintenance Log: A record that tracks all maintenance and repairs performed on the leased vehicle, ensuring compliance with maintenance obligations outlined in the lease agreement.
  • Driver Qualification File: This document contains essential information about the Lessee's drivers, including their qualifications and training records, ensuring they meet state and federal requirements.
  • Indemnity Agreement: This form outlines the responsibilities of the Lessee to indemnify the Lessor against any claims or damages that arise from the use of the leased vehicle.
  • Termination Notice: A written document that either party can use to formally terminate the lease agreement, ensuring compliance with the notice period specified in the lease.
  • Inspection Report: A report detailing the condition of the leased vehicle at the start and end of the lease term, helping to document any pre-existing damage or maintenance issues.
  • Federal and State Compliance Checklist: This checklist ensures that both parties are aware of and comply with all relevant federal and state regulations governing the lease and operation of the vehicle.

By utilizing these documents in conjunction with the Commercial Vehicle Lease Agreement, both the Lessor and Lessee can foster a clear and effective leasing relationship. This comprehensive approach helps mitigate risks and enhances communication, ensuring that both parties are well-informed and protected throughout the lease term.

Similar forms

The Commercial Vehicle Lease Agreement shares similarities with a Residential Lease Agreement. Both documents outline the terms under which one party (the lessor) allows another party (the lessee) to use property—in this case, a vehicle rather than an apartment. Each agreement specifies the duration of the lease, the responsibilities of both parties regarding maintenance and operation, and the financial obligations of the lessee. Just as a residential lease may require the tenant to maintain the property and pay for utilities, the vehicle lease places similar responsibilities on the lessee regarding maintenance and operation costs.

Another document that bears resemblance is the Equipment Rental Agreement. This agreement, like the vehicle lease, involves the temporary transfer of equipment for a fee. It includes terms related to the duration of the rental, maintenance responsibilities, and liability for damages. Both agreements often require the renter to return the equipment in good condition and may include provisions for insurance to cover potential damages, ensuring that both parties are protected against unforeseen incidents.

A Service Agreement is also similar, particularly when it involves the provision of transportation services. Both documents outline the expectations and responsibilities of the parties involved, including payment terms and service delivery. In the context of the vehicle lease, the lessee may be required to provide services using the leased vehicle, mirroring the obligations found in a service agreement where one party provides a service to another for compensation.

The Commercial Vehicle Lease Agreement is akin to a Franchise Agreement in that both involve the leasing of rights or assets to operate a business. While a franchise agreement typically covers the use of a brand or business model, it may also involve the use of specific equipment or vehicles. Both documents stipulate the responsibilities of the lessee, including compliance with legal and operational standards, ensuring that the lessee operates within the framework established by the lessor.

Additionally, a Partnership Agreement shares commonalities with the vehicle lease. In both cases, parties enter into a formal agreement that defines their roles, responsibilities, and financial obligations. For instance, if the lessee is a partnership, the lease agreement may require all partners to adhere to the terms, just as a partnership agreement outlines how profits, losses, and responsibilities are shared among partners.

Another related document is a Transportation Service Contract. This contract outlines the terms under which transportation services are provided, similar to how the vehicle lease specifies the use of the leased vehicle for transportation purposes. Both documents detail the obligations of the service provider, including maintenance and insurance requirements, as well as the financial arrangements for the service provided.

The Vehicle Purchase Agreement also bears similarities to the lease agreement. While the former involves the outright purchase of a vehicle, both documents require detailed descriptions of the vehicle, financial terms, and responsibilities related to maintenance and liability. Both agreements ensure that the buyer or lessee understands their obligations regarding the vehicle, whether they are purchasing it outright or leasing it for a specified period.

In addition, a Loan Agreement can be compared to the Commercial Vehicle Lease Agreement. In both cases, a party receives a vehicle or funds to use for a specific purpose, with the understanding that they will make payments over time. Both agreements outline the terms of repayment and the responsibilities of the borrower or lessee, including maintenance and insurance, ensuring that the asset is protected during the term of the agreement.

Lastly, an Insurance Policy is similar in that it provides coverage for liabilities that may arise from the use of the leased vehicle. Just as the lease agreement requires the lessee to maintain insurance to cover potential damages, an insurance policy outlines the terms and conditions under which coverage is provided. Both documents serve to protect the interests of the parties involved, ensuring that financial responsibilities are clearly defined and understood.

Dos and Don'ts

When filling out the Commercial Vehicle Lease Agreement form, it's important to follow certain guidelines to ensure accuracy and compliance. Here’s a list of what to do and what to avoid:

  • Do read the entire agreement thoroughly before signing.
  • Do provide accurate and complete information in all sections.
  • Do keep a copy of the signed agreement for your records.
  • Do ensure that all vehicle details are correct and match the attached Exhibit 1.
  • Do verify that you meet all driver’s license requirements.
  • Do document all maintenance activities as required.
  • Do maintain adequate insurance coverage throughout the lease period.
  • Don’t leave any section of the form blank; incomplete forms may lead to delays.
  • Don’t sublease the vehicle without written consent from the Lessor.
  • Don’t ignore the federal and state requirements outlined in the agreement.

Misconceptions

Understanding the nuances of a Commercial Vehicle Lease Agreement can help prevent misunderstandings and ensure compliance. Here are five common misconceptions about this agreement:

  • All maintenance is the Lessor's responsibility. Many believe that the Lessor is responsible for maintaining the leased vehicles. In reality, the Lessee must assume full responsibility for maintenance and operation costs, including repairs and routine upkeep.
  • The lease term can exceed five years. Some individuals think they can negotiate longer lease terms. However, the maximum term for any lease agreement is explicitly stated as five years, ensuring consistency and compliance with regulations.
  • Insurance coverage is optional. A misconception exists that insurance coverage can be chosen at the Lessee's discretion. In fact, the Lessee is required to maintain adequate insurance throughout the lease period to protect against liabilities and damages.
  • Subleasing the vehicle is allowed without consent. Some may assume they can sublease the vehicle to another party freely. However, the agreement clearly states that subleasing is prohibited without the expressed written consent of both the Lessor and the relevant transportation authority.
  • Compliance with federal regulations is not necessary. Many might think that compliance with federal laws is optional. In reality, the Lessee must adhere to all applicable federal and state requirements, as noncompliance can result in serious penalties, including termination of the lease.

Key takeaways

Filling out and using the Commercial Vehicle Lease Agreement form is an important step for both Lessors and Lessees. Here are some key takeaways to keep in mind:

  • Understand the Parties Involved: Clearly identify the Lessor and Lessee in the agreement. This establishes who is leasing the vehicle and who is providing it.
  • Know Your Responsibilities: The Lessee is responsible for maintaining the vehicle and ensuring it meets safety standards. This includes adhering to all state and federal licensing requirements.
  • Insurance is Essential: The Lessee must secure adequate insurance coverage for the leased vehicle. This protects both parties from potential liabilities and ensures compliance with state laws.
  • Term and Termination: Pay attention to the lease term and conditions for termination. The lease can last up to five years, but either party can cancel with proper notice.
  • Compliance with Regulations: The Lessee must comply with all federal and state regulations throughout the lease period. Staying informed about changes in these laws is crucial to avoid breaches of the agreement.