CLFP Legal & Regulatory Compliance

Question 1

Which Uniform Commercial Code (UCC) article specifically governs leases of personal property, including most equipment leases?

Accepted Answer

Article 2A

Answer

UCC Article 2A was enacted specifically to govern leases of personal property, providing a comprehensive framework for equipment and other personal property leases.

Question 2

Under UCC Article 9, a lessor wishing to protect its interest in leased equipment against a lessee's bankruptcy would typically file a:

Accepted Answer

UCC-1 financing statement

Answer

Filing a UCC-1 financing statement perfects a security interest in personal property, protecting the lessor's interest against third-party claims and the lessee's bankruptcy estate.

Question 3

The USA PATRIOT Act primarily impacts equipment lessors by requiring them to implement:

Accepted Answer

Customer Identification Programs (CIP) and enhanced due diligence procedures

Answer

The PATRIOT Act requires financial institutions, including some equipment lessors, to implement Customer Identification Programs to verify the identity of customers and prevent money laundering and terrorist financing.

Question 4

OFAC compliance in equipment leasing primarily requires lessors to:

Accepted Answer

Screen customers and transactions against lists of sanctioned individuals, entities, and countries

Answer

OFAC (Office of Foreign Assets Control) administers U.S. economic sanctions programs, and lessors must screen customers and transactions against OFAC's Specially Designated Nationals (SDN) list and other sanctioned parties lists.

Question 5

The Equal Credit Opportunity Act (ECOA) prohibits equipment lessors from discriminating against credit applicants based on:

Accepted Answer

Race, color, religion, national origin, sex, marital status, or age

Answer

ECOA prohibits creditors, including equipment lessors, from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.

CLFP - Certified Lease & Finance Professional Practice Test

CLFP - Certified Lease & Finance Professional Practice Test

CLFP Legal & Regulatory Compliance