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Entering into a Commercial Vehicle Lease Agreement is a significant step for businesses needing transportation solutions without the commitment of purchasing vehicles. This type of agreement, as seen in a comprehensive form revised on April 2011, outlines a legal understanding between a lessor and a lessee, detailing the lease of vehicles for commercial use, under specific terms and conditions. It incorporates arrangements agreed with the North Carolina Department of Transportation (NCDoT), including adherence to federal and state transportation programs, ensuring all leased vehicles serve public and lessor interests while maintaining safety and compliance standards. The agreement spans various crucial aspects such as lease terms, payment considerations, maintenance and operation responsibilities, insurance requirements, and adherence to federal and state laws. Additionally, it touches on the conditions under which the leasing to a private operator is permissible, training obligations for vehicle operation, and implementing measures according to federal and state requirements to prevent conflict of interest and ensure nondiscrimination. This detailed document not only emphasizes the joint responsibility of both parties in maintaining the leased vehicles but also the adherence to regulatory standards, making it a key tool in managing commercial vehicle leases effectively.

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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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Document Attributes

Fact Description
Governing Law and Integration This agreement incorporates by reference the conditions of agreements between the North Carolina Department of Transportation (NCDoT) and the Lessor, as well as the Federal Transit Administration (FTA) Master Agreement and State Management Plan, making North Carolina state law and federal law relevant.
Vehicle Use and Maintenance Lessee is responsible for operating the leased vehicle(s) in a way that serves public interest, adheres to driver licensing requirements, and ensures maximum safety. Lessee must also maintain the vehicle according to specified guidelines and assume all costs related to its operation and maintenance.
Liability and Insurance Lessee assumes all liability for damages and must hold the Lessor harmless. Adequate insurance coverage is mandatory to protect against losses, with specific requirements for liability and casualty insurance compliant with North Carolina law.
Lease Term and Termination The lease term is specified in months/years, starting from the date the vehicle(s) are placed in service and can be terminated by either party with advance notice. The maximum term is restricted to five years, with provisions for termination in cases of breach or noncompliance.
Federal and State Compliance The Lessee must comply with all applicable federal and state laws, including but not limited to regulations on federal changes, conflict of interest, lobbying, debarment, and suspensions. Failure to comply can result in a material breach of the agreement.
Civil Rights and Equal Opportunity The agreement enforces non-discrimination in accordance with federal laws like Title VI of the Civil Rights Act and the Americans with Disabilities Act. It includes provisions for equal employment opportunity and nondiscrimination on the basis of age, race, color, creed, national origin, sex, or disability.

How to Fill Out Commercial Vehicle Lease Agreement

Filling out a Commercial Vehicle Lease Agreement form is a process that involves providing specific details about the lease arrangement between the lessor and lessee. It's crucial to ensure the accuracy of the information provided on this form to avoid any potential disputes or legal issues in the future. Below are the steps needed to properly complete the form.

  1. Enter the date of the agreement in the space provided at the beginning of the form where it says "this day of , 20__."
  2. Insert the full legal name of the lessor (the party leasing out the vehicle) where it says “between , hereinafter referred to as ‘Lessor’.”
  3. Input the full legal name of the lessee (the party receiving the vehicle) in the space that follows, where it says “and , hereinafter referred to as ‘Lessee’.”
  4. Understand that the agreement acts as a subcontract of any agreement(s) between the North Carolina Department of Transportation (NCDoT) and the lessor, meaning details from such agreements are incorporated into this lease by reference.
  5. Proceed to Article I, and describe the leased vehicle(s) in detail, attaching Exhibit 1 which should list the vehicle(s) specifics, such as make, model, year, VIN, and any other relevant details.
  6. In Article II, specify the term of the lease in months or years, and clearly state both the commencement and end dates of the lease period.
  7. In the consideration section (Article III), fill in the agreed-upon lease payment per vehicle and acknowledge the lessee’s responsibility for all maintenance, operation, and repair costs.
  8. Article IV necessitates the lessee’s commitment to vehicle maintenance and operation expenses, ensuring a high level of safety and cleanliness and outlining the responsibility for all related costs.
  9. In the liability and insurance section (Article V), detail the insurance requirements, ensuring adequate coverage is maintained for the duration of the lease to protect both lessee and lessor against any losses or damages incurred through the use of the vehicle(s).
  10. Article VI emphasizes the importance of proper training for all vehicle operators, including the use of special equipment such as wheelchair lifts. The lessee must provide proof of such training upon request.
  11. If the lessee is a private operator, refer to Article VII and incorporate all relevant service agreement references into the lease agreement. Note if monetary consideration may be waived.
  12. Article VIII outlines federal and state requirements that the lessee must comply with, including adhering to changing federal laws, avoiding conflicts of interest, and meeting equal employment opportunity standards. Review and ensure compliance with each item listed under Federal/State requirements and special conditions.
  13. Review the entire document for accuracy and completeness. Both the lessor and lessee must sign and date the agreement, confirming their understanding and acceptance of all terms and conditions outlined within.

Upon completion, both parties should retain a copy of the agreement for their records. It's essential to follow all steps meticulously to ensure that the agreement is legally binding and reflects the intent and understanding of both parties involved. Should any disputes or questions arise regarding the lease terms, having a thoroughly completed and accurate agreement will be invaluable.

More About Commercial Vehicle Lease Agreement

  1. What is a Commercial Vehicle Lease Agreement?

    A Commercial Vehicle Lease Agreement is a legal document that outlines the terms and conditions under which a vehicle is leased by the lessor (owner) to the lessee (user). This contract specifies details such as the leased vehicle(s), the duration of the lease, financial arrangements, maintenance responsibilities, insurance requirements, and compliance with applicable federal and state regulations.

  2. Who are the parties involved in a Commercial Vehicle Lease Agreement?

    In this agreement, two primary parties are involved: the lessor, who is the owner of the commercial vehicle(s), and the lessee, who is the entity that will use the vehicle(s) under the terms specified in the lease agreement.

  3. How long is the term of a Commercial Vehicle Lease Agreement?

    The lease term can vary but shall not exceed five (5) years. It commences on the date the vehicle(s) are placed in service by the lessee and continues until the end date specified in the agreement, unless earlier terminated by either party with a 30-day advance notice or mutually agreed upon.

  4. What are the lessee's responsibilities regarding the maintenance and operation of the leased vehicle(s)?

    The lessee assumes full responsibility for maintaining the leased vehicle(s) in a state of cleanliness, safety, and mechanical soundness. This includes bearing all costs for gasoline, oil, maintenance, and repair during the lease term. The lessee must also adhere to a Preventive Maintenance Program/Schedule that meets or exceeds the manufacturer's recommendations.

  5. Is insurance required for leased vehicles?

    Yes, the lessee is required to obtain and maintain liability, fire, and other casualty insurance coverage sufficient to protect against losses. The insurance must comply with North Carolina law, and proof of insurance must be furnished to the lessor. Failure to maintain adequate insurance may be considered a breach of the agreement.

  6. Can the lessee sublease the vehicle to another entity?

    No, the lessee shall not sublease the lessor's vehicle to another entity without the expressed written consent of both the lessor and the appropriate state department (in this case, the North Carolina Department of Transportation/Public Transportation Division).

  7. What happens if there is a breach or noncompliance with the agreement?

    In the event of breach or noncompliance, the lessor may terminate the agreement by giving the lessee advance written notice. Specific federal and state requirements integrated into the agreement must be followed, and failure to comply may also result in termination.

  8. How does the agreement address federal and state requirements?

    The agreement mandates that all activities performed under it must be in accordance with the Master Agreement, applicable Federal and State requirements, and conditions. This includes compliance with laws and regulations that may change over time, with the latest requirements taking precedence.

  9. Are there any special conditions for leasing to a private operator?

    Yes, if the lessee is a private operator, the lease agreement is incorporated by reference into any service agreement with the lessor. Moreover, the monetary consideration may be waived under certain conditions.

  10. What training requirements are outlined in the agreement?

    The lessee assures that all vehicle operators are properly trained in operation and use of special equipment, such as wheelchair lifts and tie-downs. Proof of training must be provided upon request.

Common mistakes

When filling out the Commercial Vehicle Lease Agreement form, individuals often make a variety of mistakes. Avoiding these errors ensures a smoother lease process and prevents potential legal issues. Here are five common missteps:

  1. Omitting Important Dates: Many people forget to include crucial dates, such as the commencement date and the termination date of the lease. These dates are essential for defining the lease period.

  2. Incorrect Vehicle Description: Failing to accurately describe the leased vehicle(s) in Exhibit 1 can lead to confusion and disputes. It's important to include detailed information about the vehicle(s) being leased.

  3. Overlooking Insurance Requirements: Lessees sometimes neglect to comply with the insurance requirements outlined in the agreement. Maintaining adequate insurance for the leased vehicle(s) throughout the lease term is a must to avoid breaching the agreement.

  4. Not Documenting Maintenance: The lease requires the lessee to adhere to a Preventive Maintenance Program/Schedule and to document all vehicle maintenance activities. Failure to do so can result in non-compliance with the lease’s terms.

  5. Misunderstanding Federal and State Requirements: Lessees often overlook the necessity to comply with all applicable federal and state regulations, which can include laws, regulations, policies, and administrative practices that may change over the lease term. Non-compliance can be deemed a material breach of the agreement.

Avoiding these mistakes not only ensures compliance with the lease agreement but also helps in maintaining a good relationship between the lessor and lessee. It's always recommended to review the agreement thoroughly before signing and to consult with a professional if any part of the agreement is unclear.

Documents used along the form

When finalizing a Commercial Vehicle Lease Agreement, several other documents are typically utilized to ensure a comprehensive and enforceable contract. These documents not only provide clarity and additional details to the arrangement but also ensure compliance with legal and regulatory requirements. Here are seven essential forms and documents often used alongside the Commercial Vehicle Lease Agreement:

  • Vehicle Inspection Form: This form records the condition of the vehicle at the start and end of the lease period, documenting any existing damages or issues to prevent disputes about vehicle condition.
  • Insurance Verification Form: An essential document that provides proof of the insurance coverage required under the lease agreement, detailing the policy number, coverage types, and expiration dates.
  • Driver Authorization Form: This form lists the drivers authorized by the lessee to operate the leased vehicle, ensuring they meet the licensing requirements and are approved by the lessor.
  • Maintenance and Repair Log: A tracking document for all maintenance and repairs performed on the vehicle during the lease term, ensuring compliance with the lease agreement's maintenance requirements.
  • Accident Report Form: Used to document details of any accidents involving the leased vehicle, including date, time, location, parties involved, and a brief description of the incident.
  • Lease Extension Form: A formal request document for extending the lease term beyond the initial agreement, including the extended period and any changes to lease terms.
  • Lease Termination Notice: A written notice required to terminate the lease agreement, specifying the termination date and ensuring compliance with the agreement's notice period requirements.

Together, these documents form a critical framework that supports the Commercial Vehicle Lease Agreement. They not only help in managing the lease relationship but also in ensuring the protection of both the lessor and lessee's interests throughout the term of the lease.

Similar forms

  • Residential Lease Agreement: Much like a Commercial Vehicle Lease Agreement, a Residential Lease Agreement outlines the terms and conditions under which a tenant can rent property from a landlord. Both documents specify the duration of the lease, payment arrangements, and responsibilities regarding maintenance and repairs, albeit for different types of property.

  • Equipment Lease Agreement: This agreement shares similarities with a Commercial Vehicle Lease Agreement in that both involve leasing tangible assets for a specified period. They detail the lessee's responsibilities for maintaining the equipment or vehicle and outline the terms for use, payment, and return of the leased item.

  • Service Agreement: A Service Agreement outlines the terms under which a service provider offers services to a client, similar to how a Commercial Vehicle Lease Agreement specifies the conditions for leasing a vehicle. Both include clauses on payment terms, duration, and termination of the agreement.

  • Commercial Real Estate Lease Agreement: This type of lease, meant for commercial property, parallels the Commercial Vehicle Lease Agreement in its structure, covering lease terms, payment conditions, and responsibilities of both parties regarding maintenance and insurance, albeit for real estate rather than vehicles.

  • Franchise Agreement: While covering a different subject matter, a Franchise Agreement is similar to a Commercial Vehicle Lease Agreement in that it outlines the rights and responsibilities of both parties entering into a business arrangement, including payment terms, duration, and termination clauses.

  • Licensing Agreement: Licensing Agreements grant someone the right to use intellectual property or technology, similar to how a Commercial Vehicle Lease Agreement allows the use of a vehicle. Both agreements specify the terms of use, payments, and the period during which the agreement is valid.

  • Sublease Agreement: Like a Commercial Vehicle Lease Agreement, a Sublease Agreement lets a tenant lease out a property or space they're currently leasing. Both documents define the scope of the lease, responsibilities for damages, and the legal agreement between the original lessor, lessee, and sublessee.

  • Loan Agreement: A Loan Agreement is a formal contract between a borrower and lender, outlining the loan terms, repayment schedule, and interest rates. Similar to a Commercial Vehicle Lease Agreement, it formalizes a financial arrangement, indicating responsibilities of all parties involved.

  • Purchase Agreement: This contract details the sale of goods from one party to another, including payment terms, delivery dates, and conditions of sale. It's similar to a Commercial Vehicle Lease Agreement in its explanation of terms under which a transaction or agreement takes place, albeit for purchase rather than leasing.

  • Insurance Policy: An Insurance Policy details the terms and conditions under which insurance coverage is provided, similar to how a Commercial Vehicle Lease Agreement outlines the provisions for leasing a vehicle, including liability, coverage limits, and the responsibilities of the insured party.

Dos and Don'ts

When filling out a Commercial Vehicle Lease Agreement form, there are several dos and don'ts that are crucial to ensure a smooth legal process and protect all parties involved. The following list outlines important considerations to keep in mind:

  • Do review all the terms of the lease agreement carefully before signing. Make sure you understand the responsibilities for both the lessor and the lessee.
  • Don’t rush through reading the agreement. Take your time to go over each provision, especially those pertaining to lease duration, payments, and vehicle maintenance.
  • Do make sure that all the required areas of the form are completed accurately. Incomplete forms can lead to misunderstandings or legal complications down the line.
  • Don’t leave blanks in the agreement. If something does not apply, fill in with “N/A” (not applicable) to avoid any ambiguity.
  • Do check that insurance requirements are clearly stated and understood. Ensure that the vehicle(s) will be covered according to the agreement’s specifications and your state’s laws.
  • Don’t underestimate the importance of the maintenance schedule. Adhere to the stipulated maintenance guidelines to avoid disputes and ensure the vehicle's good working condition.
  • Do ensure that any modifications to the agreement are made in writing and signed by both parties. Oral agreements can be difficult to enforce.
  • Don’t ignore compliance with Federal and State requirements. Verify that the agreement is in accordance with the law, including the Federal Transit Administration (FTA) regulations and any relevant state laws.
  • Do keep a copy of the completed and signed agreement for your records. It’s crucial to have a physical or digital copy in case any questions or disputes arise.

By following these guidelines, you can help safeguard your interests and ensure a fair and legally sound Commercial Vehicle Lease Agreement.

Misconceptions

Understanding the intricacies of a Commercial Vehicle Lease Agreement is crucial for businesses and individuals alike to navigate their responsibilities and rights effectively. Misconceptions can lead to misunderstandings, potentially resulting in financial loss or legal issues. Below are six common misconceptions about the Commercial Vehicle Lease Agreement form:

  • All lease agreements are the same. Each lease agreement, including those for commercial vehicles, is unique. The Commercial Vehicle Lease Agreement form references specific requirements and provisions set forth by entities such as the North Carolina Department of Transportation (NCDoT) and the Federal Transit Administration (FTA), emphasizing the tailored nature of these documents to specific legal and operational frameworks.
  • The lessee can use the vehicle in any manner they wish. The agreement places specific conditions on the use of the vehicle(s), emphasizing that they must be operated in a manner that serves the best interest and welfare of the lessor and the public. Furthermore, the lessee is obligated to adhere to all driver's license requirements and maintain the vehicle in accordance with safety and protection guidelines for employees and passengers.
  • Maintenance and repair are the responsibility of the lessor. Contrary to this belief, the lessee bears all costs relating to the maintenance, operation, and repair of the leased vehicle(s), as clearly stated in the agreement. The lessee must also maintain a high level of cleanliness, safety, and mechanical soundness, emphasizing the lessee’s responsibility towards the vehicle’s upkeep.
  • Insurance is optional during the lease period. The agreement mandates the lessee to maintain continuous liability insurance coverage as per North Carolina law, and also to procure fire and other casualty insurance. This specifies that having adequate insurance is not optional but a legal requirement, ensuring that the vehicle is protected against loss and damage.
  • Subleasing is permitted without restrictions. The agreement expressly forbids the subleasing of the lessor's equipment to another entity without the explicit written consent of the lessor and the NCDOT/Public Transportation Division (PTD). This highlights the controlled use of the leased vehicle, ensuring it adheres to the original terms agreed upon between the lessor and lessee.
  • Compliance with federal and state requirements is the lessor's responsibility. The agreement makes it clear that the lessee is responsible for complying with all applicable federal and state laws, regulations, and guidelines throughout the duration of the lease. This includes changes in laws, conflict of interest policies, and specific requirements regarding civil rights and equal employment opportunities. This misconception overlooks the lessee's obligation to remain compliant with broader legal standards beyond the immediate terms of the lease.

In summary, it is essential to carefully review and fully understand the terms and conditions outlined in the Commercial Vehicle Lease Agreement. This ensures that both the lessor and lessee are fully aware of their responsibilities, rights, and the extent of their legal obligations, thereby preventing potential disputes or breaches of contract.

Key takeaways

Filling out and using a Commercial Vehicle Lease Agreement form is a crucial process that involves understanding responsibilities, terms, and legal requirements. Here are key takeaways from the vehicle lease agreement form:

  • The lessor and lessee should be clearly identified at the beginning of the agreement to establish the parties involved.
  • This agreement includes adherence to the larger context of the North Carolina Department of Transportation (NCDoT) agreements, Federal Transit Administration (FTA) guidelines, and any applicable state management plans, suggesting that these should be reviewed and understood in conjunction with this lease.
  • The vehicles being leased, their operation conditions, and maintenance responsibilities are explicitly outlined, emphasizing the importance of upholding safety standards and following state and federal regulations.
  • It specifies the lease term, including commencement and potential termination scenarios, highlighting the importance of understanding the duration and conditions under which the lease operates or can be concluded.
  • The agreement lays out detailed financial obligations, including lease payments, fees, and maintenance expenses, underlining the importance of budgeting for these responsibilities throughout the lease term.
  • Insurance requirements are comprehensively stated, ensuring lessees are aware of the necessary coverage types to secure, thereby protecting all parties involved against potential liabilities.
  • Compliance with both federal and state laws, including specific statutes and regulations, is a mandated part of the agreement, pointing to the relevance of staying informed on relevant legal requirements and ensuring adherence.
  • Finally, the agreement mentions training provisions for vehicle operators, underscoring the importance of proper education on vehicle operation and safety measures to prevent accidents and ensure passenger security.

Understanding and carefully reviewing every aspect of the Commercial Vehicle Lease Agreement is vital for both lessors and lessees. It ensures that all parties are aware of their responsibilities, legal obligations, and the specifics of the leased vehicle's operation and maintenance, facilitating a smooth and compliant leasing relationship.

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