Equipment is subject to equipment plans executed in accordance with leases structured in real or tax-motivated leases (equipment plans containing the lease are referred to as “lease agreements”) with third-party takers (the “taker”). The equipment is purchased directly by the Trust. In addition to the SUBI supplement and the SUBI maintenance supplement, the funder will also be associated with acts of execution of various securitization documents that may include a combination of securitization contract, transfer contract, pooling and management agreement, leasing agreement and trust. An equipment finance company (the company) creates a trust (trust) under a trust agreement (the “trust agreement”) for the purchase of equipment (the “equipment”), including the certification of motor vehicles (the “motor vehicles”). The use of the Titling Trust is intended to avoid the heavy administrative burdens and significant costs that are typically associated with the syndication of motor vehicle leasing. The structure is deliberately limited to motor vehicles, but also includes general equipment to maximize the flexibility available to the company. Using a Titling Trust. Titling Trust, an trust fund limited to the possession of and related leases of leases, was launched in 1994 by World Omni Financial Corp. in the financial markets. From time to time, the funder promises or transfers its rights to receive in a securitization cash flow from certain vehicles and leases (i.e. monthly rental payments and the proceeds of the sale or other provision of the leased vehicles).
Although a favourable interest is transferred to rental vehicles and associated leases, there is no need to retitling and re-enroll the leased vehicles, as each vehicle remains in the possession of the Titling Trust until it is sold or otherwise sold according to its structure and the operation of a Titling Trust. A Titling Trust is usually owned directly by the sponsor(in the case of highly rated sponsor donors) or indirectly through one or more bankrupt companies. The funder retains ownership of all Titling Trust assets for both accounting and tax purposes until securitization arrives. On that date, rental vehicles and associated leases may be retained or sold for accounting and tax purposes, depending on the securitization structure. Each party recognizes and accepts (and each DEEE certificate holder accepts and accepts that the SUBI transaction is a separate series from the Origination Trust pursuant to Section 3806 (b) (2) of Chapter 38 of the Dulaware Code. 12 Del.