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FinancingIBM Global Financing Options Definitions |
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A glossary of lease options available from IBM Global Financing
Term Lease
Option A - A True Lease where the asset is owned by a partnership in which ICC is an equity participant. This structure was used prior to the Tax Reform Act of 1986 to take advantage of investment tax credits (ITC) and other tax benefits and should not be used for new equipment. This structure should be used only for base lease extensions on existing Option A equipment.
Option B - Standard true lease structure for commercial customers. These leases are usually quoted with a term from 24 to 60 months with a fair market value purchase option at the end of the lease.
Option B' - Conditional sale lease structure for commercial customers, usually quoted with a term from 24 to 60 months. This structure contains a pre-stated bargain purchase option. Full Payout (FPO)
Option B+ - Conditional sale lease structure for commercial customers, usually quoted with a term from 24 to 60 months, with a fair market value purchase option at the end of the lease.
Option B$ - Conditional sale lease structure for commercial customers, usually quoted with a term from 24 to 60 months, with a $1.00 end of lease purchase option. Full Payout (FPO)
Option C - True lease structure which is equal to an Option B plus maintenance charges. This option is no longer available for new footprints. Equipment currently on a C lease can be upgraded or extended.
Option C+ - Conditional sale lease structure which is equal to an Option B+ plus maintenance charges. This option is no longer available for new footprints. Equipment currently on a C+ lease can be upgraded or extended.
Option C' - Conditional sale lease structure which is equal to an Option B' plus maintenance charges. This option is no longer available for new footprints. Equipment currently on a C' lease can be upgraded or extended.
Option C$ - Conditional sale lease structure which is equal to an Option B$ plus maintenance charges. This option is no longer available for new footprints. Equipment currently on a C$ lease can be upgraded or extended.
Option G - True lease structure for State and Local customers. The lease rate is equal to an Option B lease rate plus an uplift for personal property tax, non-appropriation risk, casualty loss, and state sales tax. Fair Market Value (FMV)
Option G' - Conditional sale lease structure for State and Local customers plus an uplift for personal property tax, non-appropriation risk, casualty loss, and state sales tax. These rates are typically lower than Option B$ rates since the interest income earned by ICC on these transactions is exempt from federal income taxes. This option has a $1.00 end of lease purchase option. Full Payout (FPO)
Option L - Conditional sale lease structure for commercial customers who wish to finance used equipment. This option is usually quoted with a term from 12 to 60 months, and has a fair market value end of lease purchase option. Full Payout (FPO)
Option LG - Conditional sale lease structure for State & Local customers who wish to finance used equipment. This option is usually quoted with a term from 12 to 60 months, and has a fair market value end of lease purchase option. Full Payout (FPO)
Option S - Financing of IBM software or services for Commercial customers. Full Payout (FPO)
Option S' - Financing of IBM software or services for State & Local customers. These rates are typically lower than Option S rates since the interest income earned by ICC on these transactions is exempt from federal income taxes. Full Payout (FPO)
Option T - Loan to finance non-IBM products and services, or termination charges for Commercial customers. Full Payout (FPO)
Option T' - Loan to finance non-IBM products and services, or termination charges for State & Local customers. These rates are typically lower than Option T rates since the interest income earned by ICC on these transactions is exempt from federal income taxes. Full Payout (FPO)
Installment Payment Master Agreement (IPMA)
Option I - Secured term loan to Commercial customers for IT equipment.
Option IG - Secured term loan to State & Local customers for IT equipment. These rates are typically lower than Option I rates since the interest income earned by ICC on these transactions is exempt from federal income taxes.
Option R - Secured term loan to Commercial customers for used equipment.
Option RG - Secured term loan to State & Local customers for used equipment. These rates are typically lower than Option R rates since the interest income earned by ICC on these transactions is exempt from federal income taxes.
Option S - Financing of IBM software or services for Commercial customers.
Option S' - Financing of IBM software or services for State & Local customers. These rates are typically lower than Option S rates since the interest income earned by ICC on these transactions is exempt from federal taxes.
Option T - Loan to finance non-IBM products and services, or termination charges for Commercial customers.
Option T' - Loan to finance non-IBM products and services, or termination charges for State & Local customers. These rates are typically lower than Option T rates since the interest income earned by ICC on these transactions is exempt from federal income taxes. |
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