LeaseForce International - Commercial Equipment Leasing, Financing & Consulting Service Provider

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D&A

A shorthand reference to a delivery and acceptance certificate

D/B/A

Acronym for “doing business as”; a reference to a trade name

Date of Acceptance

(Leasing based) The date that the lessee accepts the equipment as delivered for all purposes under a given contracted lease.

Date of Acquisition

(Leasing based) The date that the lessor acquires ownership of the equipment, and often the same date that the lessee accepted the equipment (i.e. often represents the start date for a given contracted lease)..

Date of Lease Agreement

The date placed upon the lease agreement as an identifier, which is often the date it is signed but need not be. The lease agreement date usually precedes the actual lease start date.

Deadbeat Corp

A business or corporation that does not pay its bills/leases payments or pays its lease obligations on a deliberate and consistently late basis

Death Valley

The “risk laden” period for a venture capital backed new business where it has started meeting expenses, but before it has met its income projections; existing venture capital usually has been consumed and new capital can be hard to come by during this “business model/concept proving” period.

Debenture

An instrument which creates or evidences debt.

Debit

A charge to an account which reduces that account

Debt

An amount owed another (personal or business related).

Debt Limit

The total amount that a debtor is allowed to borrow, either from a specific creditor or aggregately from all available sources

Debt Rescheduling

The changing of the debt repayment obligations of a party who is not making payments as originally agreed upon; payments are typically rescheduled to accommodate a more realistic and feasible structure given the situational circumstances

Debt Service

The process of paying off a loan; the term is generally used in connection with the apportionment of a specific portion of revenue from a project that is needed to retire the loans incurred in connection with that project.

Debt-For-Equity Swap

The conversion of outstanding loans (debt) to stock in a company (typically common and/or preferred); debt-for equity swaps usually occur in situations whereby a business is in severe financial distress or in the early start up phases; creditors or venture capitalists often believe that the possibility of a future return on an ownership interest is better than the certainty of a dramatic write-down or complete write-off at the present.

Debtor

A party who owes money to another party (personal or business related).

Debtor-In-Possession

(U.S. bankruptcy based) The debtor in a Chapter 11 bankruptcy when acting in the capacity of the trustee administering the bankruptcy estate

Debt-To-Equity Ratio

(Financial Ratio Analysis based) The ratio of borrowings to capital investment in either an asset or a business.

Decimal Currency

A currency whose principal unit is divided into 100 parts for subunit aggregation purposes; most of the world's currencies are now decimal currencies.

Declining Balance Depreciation

The method of depreciation, usually for tax purposes, in which a specified percentage (e.g. 150%, 200%, etc.) is applied to the balance of unclaimed depreciation remaining to determine what depreciation may be taken in the current tax year

Deed

A certificate which evidences ownership, particularly ownership of real estate.

Deed of Trust

An instrument that operates much like a mortgage to provide foreclosure and other security rights to a lender advancing funds against real estate collateral. Deeds of trust usually give a lender more favorable enforcement and recovery rights than would a comparable mortgage

Default

(1). A breach of a contract that justifies an exercise of the remedies provided in the contract. (2). (Leasing based) The situation arising when a lessee does not comply with the terms of the lease. Typically, upon default, a lessor can exercise all of its rights under the lease to repossess the leased property or other form of security, and seek monetary damages.

Default Rights and Remedies

The actions permitted by a contract and applicable law that a party may take to protect and recover asset or other interests when there has been a default by another party to the contract.

Deferred Income Tax

Income tax liabilities that are not paid in the tax year in which they accrue.

Deferred Liability

A possible liability that will become a certain liability only at the occurrence of some future event (e.g. a contingent liability).

Deferred Payment Sale

A sale or transaction whereby the entire purchase price is not paid in full at the time of purchase (i.e. installment sale, conditional sale, etc).

Deferred Revenue

Income that is not recognized for tax and/or accounting purposes in the tax or fiscal year in which it is generated.

Deflation

Appreciation in the value of money; the circumstance of a currency unit promised in the future being worth more than a currency unit in hand today; the opposite of inflation.

Delivery

The legally recognized transfer of possession of an item, instrument or other thing; the term usually implies physical delivery, but a legally recognized delivery can occur without an actual physical transfer from the possession of one party to that of another.

Delivery and Acceptance

The leasing industry term for the event in which the supplier provides the lessee with possession of the leased asset and the lessee accepts the leased asset in its received condition for all contractual purposes of the lease.

Delivery and Acceptance Certificate

The document that acknowledges that the supplier has provided the lessee with possession of the leased asset and that the lessee accepts the leased asset in its received condition for all purposes of the lease; the document typically removes all remaining conditions on the lease so that it becomes fully effective and binding upon all parties to it for the mutually agreed and specified lease term.

Demand Deposit

A monetary deposit with a financial institution that can be reclaimed by a depositor at any time during normal business hours without advance notice or a penalty.

Demand Loan

A loan with no fixed maturity date.

Demand Note

The instrument that evidences a loan with no fixed maturity date

Depreciation

(1). The gradual decline in value of an asset over a given time period, and as typically reported for financial statement and/or tax purposes. (2) A means for a firm to recover the cost of a purchased asset, over time, through periodic deductions or offsets to income. Depreciation is used in both a financial reporting and tax context, and is considered a tax benefit because the depreciation deductions cause a reduction in taxable income, thereby lowering a firm's tax liability. (3). A standard method for determining the useful life of a piece of equipment and for costing its value over the years of its active use. The total depreciation expense is equal to the difference between the initial cost of the unit and its estimated residual or salvage value. When divided over the years of the equipment's usefulness, this periodic expense can be deducted from income taxes each year.

Depreciation Indemnity

(1). A guarantee that an asset will not depreciate more quickly than at the expected rate (i.e. residual value guarantee. (2). (Tax based) A guarantee that the depreciation allowed on the asset for tax purposes will not change adversely during the term of the lease.

Depreciation Tax shield

(Tax based) The capability of the depreciation deduction, due to the fact that there is no cash outlay and tax payments real economic effect is to shelter income from over tax assessment.

Devaluation

Depreciation; the terminology is typically used in conjunction with references to formal government action taken to recognize the decline in market value of a given country's currency

Devalue

To depreciate in value; the terminology is typically used in conjunction with references to declines in the value of monetary currencies.

Developing 8

An economic development organization comprising the developing countries of Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

Dilution

The decline in the proportional value of the stock holdings of a company's shareholders as a result of the issuance of additional shares, the resulting change in ownership percentages and the control arising from such percentages.

Dinar

The standard monetary unit of the Asian countries of Algeria, Bahrain, Iraq, Jordan, Kuwait and Yemen.

DIP

(U.S. bankruptcy based) Acronym for debtor-in-possession.

Direct Finance Lease

Same as a capital lease except this accounting classification only applies to a lessor.

Direct Lease

1. A non-leveraged lease (i.e. a lease wherein equipment is acquired without use of any recourse debt; also known as a single-investor lease).

Disbursement

A monetary payment

Discharge

(US bankruptcy based) The release from prior debt obligations as a result of the successful completion of a bankruptcy proceeding.

Disclaimer/Disclaimer of Liability/Disclaimer of Warranties

A notice from a party (business), generally in a contract or as a condition of use, that the party (business) giving notice will not be held responsible for certain things (i.e. typically seen in contractual language and related business agreements).

Disclosure

The providing of all material and relevant information, including any and all of an adverse nature, particularly in connection with investment oriented decisions or opportunities

Discount

1. A deduction from a gross sum or aggregate amount (i.e. often monetary in nature, but can be percentage or barter based).

Discount Rate

A certain interest rate that is used to bring a series of future cash flows to their present value in order to state them in current, or today's, dollars. Use of a -discount rate removes the time value of money from future cash flows

Discounted Lease

A lease that is transferred (assigned) to a funding source at a price reflecting the discounting of the lease payments to present value, regardless of term. Discounted leases often involve payments of up-front cash.

Discounted Stream

A series of payments discounted to their present value.

Divest

To sell, transfer or otherwise dispose of an asset, in any form (i.e. tangible or intangible)

Dividend

1. The profits of a corporation as distributed to a shareholder. 2. A share of a fund.

Division

A subgroup within a corporation; A division is not a legal entity separate from the corporation for legal, tax or financial statement purposes (i.e. similar in nature to a subsidiary or a subset of a subsidiary).

Dobra

The standard monetary unit of Sao Tome e Principe.

Doctrine-of-Close-Connectedness

(U.S. based) A judicially created basis for imposing liability of a lessor, bank, or other financier for the actions of a dealer, supplier or vendor, when that dealer, supplier or vendor has a close working relationship with such lessor, bank or other financier. This doctrine has not achieved widespread acceptance within the global business community.

Documentation

1. A specific written record, or the process (act) of creating a written record, of the details of any given transaction.

Documents Tax

A tax assessed on the creation, recording, filing or other legal recognition of a document. Payment of the documents tax is often necessary for the document to be legally valid and/or contractually binding.

Dollar

The standard monetary unit of a number of developed and developing countries (i.e. Antigua and Barbuda, Australia, Barbados, Belize, Bermuda, British Virgin Islands, Brunei, Canada, Cayman Islands, Dominica, Fiji, Grenada, Guam, Guyana, Hong Kong, Jamaica, Kiribati, Liberia, Micronesia, New Zealand, Puerto Rico, Saint Kitts and Nevis, Singapore, Salomon Islands, Taiwan, Trinidad and Tobago, Tuvalu, United States of American, the "US Virgin Islands, and Zimbabwe.

Dollar Buy-Out/Dollar Buy-Out Lease

(1). A U.S. $1.00 purchase option at the end of the lease term allowing the lessee to purchase the equipment for a $1.00, assuming the lessee was not in default at anytime during the lease term. (2). A generalized reference to a lease with a nominal purchase option, whether the option is actually U.S.$1.00 or some other nominal amount.

Dollarized Currency

A local currency whose value is pegged one-to-one with the U.S. (i.e. Argentina, Panama, etc.).

Dollarized Economy

The economy of a country whose local currency and aggregate value is pegged one-to-one with the U.S. dollar (i.e. Argentina, Panama, etc.).

Double Taxation

The assessment of the same tax twice on an item; The notion or act of double taxation has not been definitively proven to be unconstitutional

Down Payment

(Loan based) The up-front payment that reduces the principal amount of the loan from what it would have otherwise been. "The term is sometimes erroneously applied to a significant up-front payment in a lease, particularly in connection with a consumer vehicle lease, but such a payment is more accurately a capital cost reduction

Downsizing

The process of reducing the number of employees of a business, its assets or the overall scope of its operations with the usual intention to improve efficiency and/or profitability.

Down-stream Merger

The merger of a parent corporation into one of its subsidiaries, with the subsidiary being the surviving (go forward) business entity or concern.

Draft

An order for the payment of money drawn by one person or business on another

Drawdown

The continual drawing or use of some or all of the funds available under a given line of credit.

Drop-Dead Date

The date by which a transaction must close, regardless of excuse, or the transaction process is terminated.

Dry Lease

A lease or rental of transportation equipment, particularly aircraft, and typically without fuel.

Due

Currently and presently payable (e.g. many vendor invoices are due and payable upon receipt or within a stated time period).

Due Diligence

A systematic examination in some detail (sometimes highly thorough detail) of all material and relevant information particularly made in pursuit of adverse information. The intention is to allow for a fully informed investment decision (e.g. further research done (more in-depth) after one lessor has initially decided to acquire another but before the acquisition is finalized or closed).

Dun & Bradstreet

A diverse and world-renowned global credit information service headquartered in the U.S.

Duress

A state of extreme stress or a compromising situation that legally excuses a party from an apparent legal obligation

Duty

A legal obligation to do and/or the act of refraining from doing certain actions

Duty free

Goods that are not subject to country specific importation/exportation customs duty.

Duty Free Zone

A geographical space in which goods moving in and out of that space are exempted from country specific importation/exportation customs duties. Duty Free zones are typically created by governments, to encourage investment in that particular region of the country, and to create local jobs

Duty Paid

The status of goods upon which the customs duties have already been paid and satisfied.