Free Commercial Vehicle Lease Agreement PDF Form Prepare Document Here

Free Commercial Vehicle Lease Agreement PDF Form

A Commercial Vehicle Lease Agreement form is a contractual document that outlines the terms and conditions under which one party (the lessor) agrees to lease commercial vehicles to another party (the lessee). This form serves as a detailed record of the agreement, encompassing aspects such as vehicle details, lease term, payment schedule, and obligations concerning vehicle maintenance, insurance, and operation. Ensuring that such an agreement is comprehensively filled out and mutually agreed upon is pivotal for both parties to safeguard their interests and maintain a clear understanding of their responsibilities. Click the button below to fill out your Commercial Vehicle Lease Agreement form with ease.

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Content Overview

In navigating the complexities of commercial vehicle leasing, understanding the intricacies of the Commercial Vehicle Lease Agreement form is paramount for both lessors and lessees. This comprehensive document, frequently updated to reflect prevailing regulations and practices, lays the groundwork for a legally binding arrangement between the vehicle owner (lessor) and the entity that acquires the vehicle for use (lessee). Under the backdrop of this agreement, each party's responsibilities and obligations are clearly delineated, covering a wide array of critical aspects including, but not limited to, the lease duration, payment terms, maintenance, operational stipulations, insurance requirements, and adherence to state and federal laws. Specifically, it incorporates terms directly linking the lease to the North Carolina Department of Transportation and the Federal Transit Administration, ensuring compliance with broader governmental frameworks and policies. Moreover, the agreement outlines the prerequisites for vehicle maintenance and operation, detailing measures to ensure safety, cleanliness, and mechanical reliability. It emphasizes the lessee’s duty to secure adequate insurance, thus shielding all involved parties against potential liabilities. Additionally, the document specifies conditions under which the lease might be terminated, highlights the significance of training for vehicle operators, and addresses compliance with various federal and state requirements, underscoring the necessity for lessees to navigate a complex landscape of laws, including those pertaining to civil rights, equal employment opportunities, conflicts of interest, and lobbying. Through setting forth these provisions, the Commercial Vehicle Lease Agreement form serves as a crucial tool in fostering transparency, accountability, and mutual understanding in commercial vehicle leasing ventures.

Example - 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.

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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.

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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.

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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.

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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;

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(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.

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(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.

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(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.

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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

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Form Data

Fact Name Description
Parties Involved This agreement is between a lessor and a lessee, where the lessor is subcontracted under the North Carolina Department of Transportation (NCDoT).
Incorporated Documents Includes provisions from the agreement with NCDoT, the Federal Transit Administration (FTA) Master Agreement, and any relevant state or federal transportation plans or revisions.
Lease Term and Conditions The lease term can vary but cannot exceed five years. It starts when the vehicle(s) are placed in service and can be terminated by either party with 30 days' notice.
Responsibilities of Lessee The lessee is responsible for all costs related to maintenance, operation, and insurance of the leased vehicle(s) and must adhere to all applicable state and federal requirements.
Insurance Requirements Lessee must provide continuous liability coverage as per North Carolina law, and comprehensive and collision coverage to ensure replacement or repair of vehicles in case of damage or loss.
Governing Laws and Regulations The agreement is governed by Federal and State laws, including compliance with civil rights, debarment and suspensions, lobbying restrictions, and nondiscrimination policies.

How to Fill Out Commercial Vehicle Lease Agreement

Filling out a Commercial Vehicle Lease Agreement form requires attention to detail and an understanding of the agreement terms. The process involves entering specifics about the leasing parties, the vehicle, terms of the lease, financial considerations, and other legal stipulations related to operation, maintenance, and insurance. By following these steps, both the lessor and lessee ensure they're aligned on their roles and responsibilities within the agreement, facilitating a clearer, legally binding contract.

  1. Start by writing the date of the agreement in the space provided at the top of the form.
  2. In the space after "between," write the name of the lessor (the party offering the vehicle on lease).
  3. Next, fill in the name of the lessee (the party leasing the vehicle) in the corresponding space.
  4. Under Article I - Leased Vehicles, attach Exhibit 1 that describes the vehicle(s) being leased. Make sure this includes all necessary details such as make, model, year, and VIN.
  5. Specify the terms of the lease, including the commencement date and the duration in months or years, under Article II - Terms of Lease and Commencement Date.
  6. In Article III - Consideration, write the agreed payment per vehicle for the term of the lease.
  7. Under Article IV - Routine Maintenance and Operation Expenses, acknowledge the lessee’s responsibility for all maintenance and operational costs by initialing next to this section.
  8. Review Article V - Liability and Insurance, and confirm the insurance requirements. The lessee must ensure adequate insurance coverage is maintained for the duration of the lease.
  9. Article VI - Training details the training requirements for vehicle operators. Confirm that these conditions will be met.
  10. For lessees who are private operators, Article VII - Leasing to a Private Operator explains how the monetary consideration may be waived. Understand the conditions under which this applies.
  11. Thoroughly read through Article VIII - FEDERAL/STATE REQUIREMENTS AND SPECIAL CONDITIONS, which outlines the compliance with federal and state laws during the lease term.
  12. Both parties must sign and date the bottom of the form to validate the agreement. Ensure the lessee and lessor provide their full legal names, titles, and the date of signing. If applicable, the form should also be witnessed or notarized according to state requirements.
  13. Lastly, double-check that all information is correct and no section has been missed. Submit the completed form to the necessary department or authority as required.

After completing these steps, both the lessor and lessee should keep a copy of the signed agreement for their records. The form is now ready to guide the commercial vehicle lease arrangement, making sure both parties adhere to their agreed-upon responsibilities and terms throughout the duration of the lease.

FAQ

What is a Commercial Vehicle Lease Agreement?

A Commercial Vehicle Lease Agreement is a formal contract between the lessor (the owner of the vehicle) and the lessee (the entity leasing the vehicle), where the lessor agrees to lease one or more vehicles to the lessee under certain conditions. This agreement outlines terms regarding the lease duration, payments, maintenance, insurance requirements, and other obligations of both parties. It is often used in professional settings where businesses need commercial vehicles for operation but prefer leasing over purchasing outright.

How long can a commercial vehicle be leased under this agreement?

The maximum term for any lease agreement under these conditions cannot exceed five years. The specific term, whether in months or years, commences on the date the vehicle(s) are placed in service by the lessee and continues until the end date agreed upon by both parties or until the agreement is canceled or terminated by either party with 30 days advance notice.

What responsibilities does the lessee have for the leased vehicle?

The lessee assumes full responsibility for maintaining the leased vehicle in a safe, clean, and mechanically sound condition. This includes bearing all costs related to routine maintenance, operation, and repairs. The lessee must also adhere to all state and federal driver’s license requirements, complete necessary vehicle registration, and ensure compliance with guidelines set forth by the Federal Transit Administration (FTA) and North Carolina Department of Transportation (NCDOT). Subleasing the vehicle without written consent from the lessor and NCDOT is prohibited.

What insurance requirements must the lessee meet?

The lessee is tasked with maintaining continuous liability coverage that complies with North Carolina law, covering all potential liabilities associated with passenger service. Additionally, the lessee must protect the vehicle(s) against risks like fire or other damages through comprehensive and collision coverage, ensuring insurance levels are adequate to repair or replace the vehicle(s) if necessary. Proof of insurance must be submitted to the lessor and the public transportation division annually, or upon request.

Are there any training requirements for vehicle operators?

Yes, the lessee must ensure that all vehicle operators are appropriately trained in the operation of the vehicles and the correct use of special equipment, including but not limited to wheelchair lift equipment and tie-down mechanisms. Proof of such training must be provided to the lessor upon request, ensuring safe and competent operation of the leased vehicles.

What federal and state requirements must the lessee comply with?

The lessee must adhere to a variety of federal and state requirements, which may include changes in laws, regulations, policies, and administrative practices that affect the lease agreement. This compliance extends to civil rights, debarment and suspensions, conflict of interest, and lobbying restrictions. Failure to comply with these requirements can result in a material breach of the agreement, potentially leading to termination.

Can the lessee sublease the vehicle to another operator?

The lessee is not permitted to sublease the lessor's equipment to another entity without the expressed written consent of both the lessor and the NCDOT/Public Transportation Division. This ensures that all parties involved in the use of the leased vehicles are aware of and agree to the terms set forth in the original lease agreement.

Common mistakes

    When filling out the Commercial Vehicle Lease Agreement form, people often make several common mistakes that can affect the validity of the contract or lead to misunderstandings between the parties involved. Recognizing and avoiding these mistakes is essential for a smooth leasing process. Here are six such errors:

  1. Failing to accurately identify the parties involved. It's crucial to use the full legal names of both the lessor and lessee to avoid any potential legal ambiguities.

  2. Not detailing the vehicle(s) being leased. The make, model, year, and VIN of each vehicle should be clearly listed to prevent any disputes over the leased assets.

  3. Omitting the lease term and commencement date. Ensuring these dates are correct avoids confusion about the lease duration and the responsibilities of each party.

  4. Ignoring the maintenance and operation responsibilities. Lessees must be aware of their obligations regarding the vehicle's upkeep, as failing to follow these can result in penalties or additional charges.

  5. Overlooking insurance requirements. Adequate insurance coverages are mandatory; lessees need to provide proof of insurance as stipulated in the agreement to safeguard against liabilities.

  6. Skipping over federal and state requirement acknowledgments. Compliance with all relevant laws and regulations is essential and failing to acknowledge this can lead to legal issues.

    In addition to these primary concerns, here are a few more subtleties that often get overlooked but are equally important:

  • Not obtaining the lessor’s express written consent before subleasing the vehicle to another entity. This oversight can result in a breach of the lease agreement.

  • Failure to properly document and track maintenance activities as required can lead to disputes over vehicle condition and maintenance upon lease termination.

  • Incorrectly assessing or not updating insurance values to reflect current market conditions can leave parties financially exposed in the event of a total loss.

  • Not providing or inaccurately completing the necessary documentation for registration and license tag transfer, leading to legal and operational issues.

  • Underestimating the importance of vehicle operator training, especially concerning special equipment, which can result in accidents or misuse of vehicles.

  • Disregarding the need to verify subcontractors and third-party contractors against the Excluded Parties Listing System can result in fines and debarment for the lessee.

Documents used along the form

When engaging in a Commercial Vehicle Lease Agreement, several other forms and documents are often used to ensure that all aspects of the lease are covered comprehensively. Understanding these additional documents can provide a clearer picture of the responsibilities and protections for both the lessor and lessee. Below is a list of four commonly used documents alongside the Commercial Vehicle Lease Agreement.

  • Vehicle Inspection Form: This document is used to record the condition of the vehicle at the time of leasing. It details any existing damages or issues with the vehicle, ensuring that the lessee is not held responsible for pre-existing conditions upon return of the vehicle.
  • Insurance Verification Form: Since liability and insurance are crucial aspects of leasing a vehicle, this form provides proof that the lessee has obtained adequate insurance coverage as required by the lease agreement. It protects both parties in the event of an accident or damage.
  • Maintenance and Repair Log: To comply with the lease agreement’s terms regarding vehicle upkeep, this log keeps track of all maintenance and repair work performed on the vehicle during the lease period. It helps to ensure the vehicle is maintained according to manufacturer guidelines and lease agreement stipulations.
  • Lease Extension Form: This form is utilized if the lessee chooses to extend the lease beyond the original term specified in the agreement. It outlines the terms of the lease extension, including duration and any changes in lease payments or conditions.

Each of these documents plays a vital role in the commercial vehicle leasing process, providing a structure that helps to mitigate risks and clarify expectations for both parties involved in the lease. By understanding and properly utilizing these forms, both lessors and lessees can ensure a smoother and more transparent leasing experience.

Similar forms

  • Residential Lease Agreement: Similar to a Commercial Vehicle Lease Agreement in structure and purpose, a Residential Lease Agreement outlines the terms and conditions under which a tenant agrees to rent property from a landlord for residential use. Both types of agreements include details about the lease term, payment schedules, and the responsibilities of each party. However, the Residential Lease Agreement focuses on the use of real property for living purposes, while the Commercial Vehicle Lease Agreement deals with the use of vehicles for commercial transportation purposes.

  • Equipment Lease Agreement: This document closely mirrors a Commercial Vehicle Lease Agreement as both involve the rental of physical assets. An Equipment Lease Agreement specifies the terms under which one party leases equipment to another. Similar elements between the two include maintenance responsibilities, lease terms, payment requirements, and insurance obligations. The primary difference lies in the assets leased—generic equipment versus specifically commercial vehicles.

  • Service Agreement: Service Agreements and Commercial Vehicle Lease Agreements share similarities in the aspect of providing services under predefined conditions. While a Service Agreement directly involves the provision of services between a vendor and a client, including scope, duration, and payment for the services, the Commercial Vehicle Lease Agreement might indirectly involve service provision through the leased vehicles’ operational uses. Both documents serve to clarify the expectations and responsibilities of each party to prevent disputes.

  • Subcontractor Agreement: This contract resembles the Commercial Vehicle Lease Agreement because it also extends a primary agreement's terms to another party. A Subcontractor Agreement is often used when a business that has contracted to provide services or goods further hires another business to carry out part of that work. Both this agreement and the Commercial Vehicle Lease Agreement include terms for compliance with broader obligations outlined in a master agreement and address roles, duties, and legal compliance in a cascading manner from the original contractor or lessor to subsequent parties.

Dos and Don'ts

When filling out a Commercial Vehicle Lease Agreement form, paying attention to the details is crucial to protect both parties involved in the lease. Here are some important do's and don'ts to keep in mind:

  • Do ensure all the information is accurate. Double-check names, dates, and vehicle details to prevent any issues or misunderstandings later on.
  • Do clearly describe the vehicle(s) being leased, including make, model, year, and VIN (Vehicle Identification Number), to avoid any ambiguity.
  • Do include all relevant terms of the lease, such as lease duration, monthly payments, maintenance responsibilities, and insurance requirements, to ensure both parties are on the same page.
  • Don't skip reading and including the applicable terms from related agreements, such as the agreement between the North Carolina Department of Transportation (NCDoT) and the Lessor, and any federal or state requirements. These are critical to ensuring the lease is compliant with broader regulations.
  • Don't forget to specify the conditions under which the lease can be terminated or canceled, including any penalties or advance notice requirements. This provides a clear exit strategy for both parties.
  • Don't overlook the requirement for both parties to sign and date the agreement. Unsigned agreements are not enforceable and can lead to significant legal complications.

Adhering to these guidelines will help ensure that the Commercial Vehicle Lease Agreement is comprehensive, clear, and legally binding. This will minimize the potential for disputes and ensure that both the Lessor and the Lessee have a solid understanding of their respective rights and obligations.

Misconceptions

Understanding the Commercial Vehicle Lease Agreement can often be complex due to the presence of various legal terms and conditions. However, there are common misconceptions that need clarification to ensure both parties involved - the Lessor and the Lessee - have a clear understanding of their rights and obligations. Here are eight misconceptions about the Commercial Vehicle Lease Agreement form:

  • Misconception 1: The lease only involves the lessee and the lessor. In reality, the agreement also involves the North Carolina Department of Transportation (NCDOT) as a critical third party due to its subcontract nature.
  • Misconception 2: The agreement is fixed and cannot be modified. Contrary to this belief, the agreement includes provisions from other agreements and federal requirements, which means it can be updated or amended as needed.
  • Misconception 3: Any vehicle can be leased without specific requirements. This is incorrect because commercial drivers' licenses are required for vehicles that can carry 16 or more passengers, including the driver.
  • Misconception 4: The Lessor is responsible for the vehicle's registration fees. It is, in fact, the responsibility of the Lessee to handle all registration fees associated with the vehicle.
  • Misconception 5: Maintenance and operations of the vehicle are optional. The agreement clearly states that the Lessee is responsible for maintaining and operating the vehicle in a safe and efficient manner according to certain guidelines.
  • Misconception 6: Subleasing is permitted under the agreement. Subleasing requires the express written consent of the Lessor and the NCDOT/Public Transportation Division, making it not as straightforward as assumed.
  • Misconception 7: There are no limits on the lease term. The agreement specifies that the maximum term shall not exceed five years, which sets clear limits on the duration of the lease.
  • Misconception 8: Insurance is provided by the Lessor. In fact, the Lessee must secure adequate insurance for the vehicle and is responsible for any damages or losses incurred during the lease term.

Clearing up these misconceptions is essential for both Lessors and Lessees to understand their rights, responsibilities, and the scope of the Commercial Vehicle Lease Agreement. This understanding helps in avoiding potential conflicts and ensures a smooth and agreeable leasing arrangement.

Key takeaways

When dealing with a Commercial Vehicle Lease Agreement, especially one that involves entities like the North Carolina Department of Transportation (NCDoT) and Federal Transit Administration (FTA), understanding the key elements and responsibilities is crucial for both the Lessor and the Lessee. Below are five key takeaways to guide you through filling out and using such an agreement.

  • Specific Vehicle Details and Use: The agreement should clearly outline the specifics of the leased vehicle(s), including descriptions and expectations for use. It's essential that the vehicle(s) serve both the Lessor's and public interest, with a commitment to safety and appropriate operation as specified in the agreement.
  • Compliance and Licensing: Both parties must ensure compliance with all relevant federal and state regulations, including driver's licensing requirements (e.g., Commercial Driver's License for certain passenger capacities), vehicle registration, and adherence to maintenance and operation guidelines set by authoritative bodies like the FTA.
  • Financial Responsibilities: The Lessee is responsible for all costs associated with the lease, including but not limited to, the lease payment to the Lessor, vehicle maintenance, operation, repair costs, and insurance coverage sufficient to protect against loss or damage. This ensures the Lessor is held harmless for any damages arising from the leased vehicle's use.
  • Maintenance and Operational Obligations: The Lessee assumes full responsibility for maintaining the vehicle in a clean, safe, and mechanically sound condition. This includes adhering to a Preventive Maintenance Program that meets or exceeds manufacturer guidelines and documenting all maintenance activities.
  • Insurance and Liability: The Lessee must secure adequate insurance coverage for the vehicle(s), covering various potential losses, including liability, fire, and casualty. It is also their responsibility to indemnify the Lessor against any losses incurred due to the vehicle's operation. The agreement specifies the levels of insurance required and the Lessee's obligation to provide proof of such insurance annually.

Understanding and faithfully executing the responsibilities and requirements laid out in a Commercial Vehicle Lease Agreement are crucial for both the Lessee and the Lessor. This ensures the protection of all parties involved, the public interest, and compliance with all relevant laws and guidelines. Proper management of these agreements supports smooth operations and minimizes the risk of disputes or legal issues arising from the lease's terms.

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