Condition and Completeness of Returning Equipment

Condition and Completeness of Returning Equipment

There are two reasons why it is important to understand the end of lease terms in your lease contract. First, the process needs to be clearly defined so that you can efficiently return the assets. Second, you must understand exactly what circumstances will result in additional charges or lease extensions. In order to realize the benefits of a lease program you must make sure you completely understand your end of lease responsibilities. Recent reports from industry consultants have pointed out lease end as an area where lessors can charge you unexpected fees. At IBM we have defined end of lease policies that are fair and realistic.

What to return

All items received with the equipment at installation, including any software licenses and CDs that were issued with the machine, including recovery CDs, must be returned at lease end and packed with the assigned machine.
The “Certification of Authenticity” – COA – adhesive label must remain affixed to the unit. However, if attached to an owners manual, then the manual is required to be returned with the COA attached.

These items should be packed and grouped together with the assigned machine. You will be charged the cost of replacing the missing, damaged or nonfunctional items that are listed in the box below.

Publications (Installation and User’s Guides and Technical Reference Manuals) should not be returned.

In addition to all leased features, the following parts must be returned with the leased asset, or you will be charged for any damaged/missing items:

Returned Parts

This list is not all-inclusive; any other parts originally shipped with the PC should be returned.

**When shipping toner cartridges, remove from printer and package separately in a plastic bag.

Refer to the section on packaging for more details.

Remove passwords, and customer stickers

All security passwords, including power-on, administrative and hard drive passwords, must be removed prior to returning the equipment. Password-protection on a computer significantly reduces the value of the machine, as major components may be rendered useless by the password. A charge up to the end-of-lease purchase price for the unit will be issued for the unit.

Confidential data

You are responsible to remove all data and information, including, but not limited to, programs not licensed to a specific item of equipment. We have no obligation to remove your or any other party’s data or information from any item of equipment, unless, upon your request, we have agreed to provide this service for a fee.

Damaged equipment

A bill for the cost of replacing missing or nonfunctional items will be sent within one or two months after the return of the equipment. (in most cases within one month). Missing or damaged parts on one equipment will not impact the lease for the balance of the assets on the lease schedule.

The charge for missing or damaged items will be the replacement cost of the component up to the EOL Fair Market Value of the total asset. For example, if a laptop/notebook with a value of $250 is returned with a cracked display that will cost $300 to repair, the charge is $250. However, if it had a fair market value of $600 the charge would be $300, the cost to repair the display. This protects you from expensive repairs that would cost more than the asset itself.

We recognize that the assets you leased were in use while on lease and may have a few nicks and chips or what is considered “normal wear and tear”. However, the equipment must be in good working order or you will be charged for any necessary repairs, some of which may be outside the scope of your warranty or maintenance agreement.

Any defects that are covered under the manufacturer’s warranty or maintenance, as applicable, should be corrected prior to return.

Your responsibilities when returning equipment

The responsibility for this return lies with you, the lessee, not the carrier. If the carrier fails to perform their responsibilities as you have requested, you must address these concerns directly with the carrier, not IBM Global Financing. You continue to have risk of loss for the deductible amount on the casualty insurance per your lease agreement until the arrival of the equipment at our designated location.

Please be advised that since your carrier will be unable to verify the serial number of the equipment being loaded if it has already been packed for return, additional reconciliation may be required. For those exceptions, the risk of casualty loss will still be in effect. Final verification of the serial number will only occur after unpacking and receipt of the asset by IBM Global Financing at our facility is completed. For that reason, a “Subject to Confirmation” will be stamped to the Bill of Lading to confirm it has arrived at our facility but still depends on physical confirmation. The copy of the Bill of Lading (BOL) is returned to the requestor, which is the carrier. It is delivered to the Customers only and when it is requested by them to the carrier.

Condition and completeness of equipment

All Equipment must be eligible for IBM maintenance when returned and be complete with all components, including cables. You will be charged for missing items. The original lease configuration must be returned along with any mid-lease feature changes that were added to the lease.

Charges due under the contract will be billed to you. These may include:

• Personal property tax reimbursement
• Repair of damage beyond normal wear and tear to the equipment
• Payment for any missing equipment or associated items
• Other taxes due, if any.

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