Can the title to the demised property be acquired prior to leasing contract termination? Will the original leasing price change?

The title to the demised property can be acquired prior to regular leasing contract conclusion. The client must settle all the obligations to the leasing company up to the moment of early termination. In addition, the seller has to pay the sum equivalent to the future leasing instalments (due after the early leasing contract termination); however, refinance interest will be deducted therefrom.

What to do in the event of the lessee’s death?

In case the lessee dies, the lessee's claims and obligations devolve upon the heir as determined in the probate proceedings (estate settlement).

Can the leasing contract be terminated earlier (demised property purchase)?

Given the fact that financial leasing involves tax allowances, the Income Tax Act precisely defines the basic specifications thereof that must be observed. Inter alia, the specifications include a minimum financial leasing period that is graded depending on the depreciation group the demised property falls under. If the minimum leasing period is not observed, the Act defines a penalty both for the lessee and the lessor, if the leasing period is shortened through the fault of one of the contracting parties (pursuant to the Act, unintentional causes of early leasing contract termination include, e.g.: demised property theft or an insurance event wherewith the repair costs exceed the current vehicle price registered with insurance company).

What is the course of actions with regular leasing contract termination?

• Prior to leasing contract termination, IMPULS-LEASING Slovakia sends the client a call specifying the actions to be taken for regular leasing contract termination, i.e. in particular:
  - payment of the agreed net book value or fee for transfer of title to the demised property within the specified deadline.
• IMPULS-LEASING Slovakia will notify the client if the client has had the demised property insured via IMPULS-LEASING SK, that the insurance will terminate as on the leasing contract termination day. In common practice, the insurance company then addresses the lessee with an offer to conclude the insurance contract for additional period under beneficial terms.

What are the possibilities of technical appreciation of the demised property and the depreciation method?

• Technical appreciation of the demised property:
  - can be realised by the lessee at own costs upon written consent, whereas the leasing price will not change. In such a case, the leasing lessee depreciates the technical appreciation value in compliance with the Income Tax Act.
  - can be paid by the lessor, whereas it will adjust the leasing price accordingly.
• The lessee asserts leasing instalments as tax expenditures in the sense of Income Tax Act (with passenger cars only up to the limit amount, if defined in the Income Tax Act); accounting depreciations are proportionately asserted by the leasing company as the owner of the demised property.

Can I apply for deferral or postponement of leasing instalment due dates?

All amendments to payment schedules are assessed individually by company management upon the client's written request. In case of any financial problems, our company must be contacted without delay and further proceedings agreed.

Can the demised property be assigned to another person?

Yes, upon the lessee’s request and upon verification of the new lessee’s solvency, the demised property can be assigned to a third person in a form of cession (assignment of leasing contract rights and obligations).