Commercial Vehicle Lease Agreement PDF Template

A Commercial Vehicle Lease Agreement is a formal contract between a lessor and a lessee, outlining the terms under which a vehicle is leased for commercial use. This agreement incorporates various provisions, including maintenance responsibilities, liability coverage, and compliance with federal and state regulations. For those interested in leasing a vehicle, filling out the form is a crucial first step; click the button below to get started.

Article Guide

The Commercial Vehicle Lease Agreement form serves as a crucial document that outlines the responsibilities and obligations between the Lessor and the Lessee regarding the leasing of vehicles. Central to this agreement is the description of the leased vehicles, which are detailed in an attached exhibit, and the stipulation that these vehicles must be operated in a manner that prioritizes safety and public welfare. The agreement specifies the term of the lease, which can last up to five years, and includes provisions for maintenance, operation, and liability. The Lessee is tasked with maintaining the vehicles in accordance with manufacturer guidelines and is responsible for all operational costs, including fuel and repairs. Additionally, the agreement mandates that the Lessee carry adequate insurance coverage to protect against potential liabilities arising from the use of the leased vehicles. Compliance with federal and state regulations is also emphasized, ensuring that the Lessee adheres to legal requirements throughout the lease period. This form not only facilitates the leasing process but also establishes a framework for accountability and safety in the operation of commercial vehicles.

Commercial Vehicle Lease Agreement Preview

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)

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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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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.

(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.

(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.

(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.

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.

(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.

(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

↓ Commercial Vehicle Lease Agreement

File Properties

Fact Name	Description
Parties Involved	The Commercial Vehicle Lease Agreement is made between the Lessor and Lessee, where the Lessor leases vehicles to the Lessee.
Governing Law	This agreement is governed by the laws of North Carolina, particularly those related to transportation and leasing.
Lease Duration	The lease term can last up to five years, with specific start and end dates outlined in the agreement.
Insurance Requirements	The Lessee must maintain adequate liability and casualty insurance for the leased vehicles throughout the lease term.
Maintenance Responsibilities	The Lessee is responsible for all maintenance, operation, and repair costs associated with the leased vehicles.
Compliance with Federal Requirements	The Lessee must adhere to federal and state regulations, including civil rights laws and non-discrimination policies.
Subleasing Restrictions	The Lessee cannot sublease the vehicles without written consent from the Lessor and the North Carolina Department of Transportation.

Instructions on Utilizing Commercial Vehicle Lease Agreement

Completing the Commercial Vehicle Lease Agreement form requires careful attention to detail. This document outlines the terms of the lease between the Lessor and Lessee, including responsibilities, liabilities, and compliance with federal and state requirements. Follow the steps below to ensure accurate completion of the form.

Enter the date on which the lease is being signed in the designated space.
Fill in the name of the Lessor in the first blank space provided.
Fill in the name of the Lessee in the second blank space provided.
Attach Exhibit 1, which should detail the vehicle(s) being leased, and refer to it in the agreement.
Specify the lease term in months or years, starting from the date the vehicle(s) are placed in service.
Indicate the end date of the lease agreement.
State the rental fee per vehicle in the designated space.
Ensure that all sections regarding maintenance, operation, and liability are reviewed and understood.
Provide proof of insurance coverage as required, ensuring it meets North Carolina state laws.
Sign and date the agreement at the bottom, ensuring all parties have the opportunity to review it before signing.

Important Facts about Commercial Vehicle Lease Agreement

What is a Commercial Vehicle Lease Agreement?

A Commercial Vehicle Lease Agreement is a contract between a Lessor (the owner of the vehicle) and a Lessee (the person or entity leasing the vehicle). This document outlines the terms under which the Lessee can use the vehicle, including responsibilities for maintenance, insurance, and compliance with federal and state regulations. The agreement is often tied to larger contracts with government entities, ensuring that all parties adhere to specific guidelines.

What are the responsibilities of the Lessee under this agreement?

The Lessee is responsible for maintaining the vehicle in a clean and safe condition. This includes regular maintenance, fuel costs, and any repairs needed during the lease term. Additionally, the Lessee must ensure that all drivers have the appropriate licenses and that the vehicle is operated according to applicable laws. They must also provide proof of insurance and may be required to submit periodic maintenance reports to the Lessor.

How long does the lease term last?

The lease term can vary but typically lasts for a specified number of months or years, starting when the vehicle is placed in service. The maximum duration of the lease is five years. Either party may terminate the lease with 30 days' written notice, provided that all terms are met. If the Lessee breaches any terms, the Lessor can terminate the agreement after giving written notice.

What types of insurance are required?

The Lessee must maintain liability insurance that covers any incidents that may occur while using the vehicle. This insurance must be continuous and provided by a company licensed in North Carolina. Additionally, the Lessee is required to have comprehensive and collision coverage to protect against loss or damage to the vehicle. Proof of insurance must be submitted annually to the Lessor.

Can the Lessee sublease the vehicle?

No, the Lessee cannot sublease the vehicle to another entity without obtaining written consent from the Lessor and the North Carolina Department of Transportation. This ensures that the terms of the original lease are upheld and that the vehicle is used according to the established guidelines.

What happens if the vehicle is damaged or lost?

If the vehicle is damaged or lost, the Lessee is responsible for notifying the Lessor immediately. The Lessee must maintain adequate insurance to cover repairs or replacement costs. If the insurance does not cover the full market value of the vehicle, the Lessee may be held financially responsible for the difference.

Are there any specific federal or state requirements the Lessee must follow?

Yes, the Lessee must comply with various federal and state regulations, including those related to nondiscrimination, lobbying, and debarment. These requirements ensure that the Lessee operates in accordance with laws that govern federal funding and transportation services. Noncompliance can lead to serious consequences, including termination of the lease.

What is the process for reporting maintenance activities?

The Lessee must document all maintenance activities in a Preventive Maintenance Record format. This includes keeping track of all services performed on the vehicle. The Lessor may request periodic reports to verify compliance with maintenance standards. Adhering to these guidelines helps ensure the vehicle remains in good working condition and meets safety requirements.

What training is required for vehicle operators?

The Lessee must ensure that all vehicle operators receive proper training on how to operate the vehicle and any special equipment, such as wheelchair lifts. This training is crucial for the safety of passengers and must be documented. The Lessor may request proof of this training at any time to ensure compliance with safety standards.

Common mistakes

Filling out a Commercial Vehicle Lease Agreement can be a daunting task, and it's easy to make mistakes that could lead to significant issues down the line. One common error is failing to complete all required fields. Each section of the agreement is crucial, and leaving any blank can delay the processing of the lease. Ensure that every section, including dates, names, and vehicle details, is filled out completely. A missing signature or date can render the entire agreement invalid.

Another frequent mistake involves misunderstanding the terms of the lease. Many individuals overlook the importance of reading the entire document before signing. This can lead to unexpected obligations or liabilities. For example, the Lessee is responsible for maintaining the vehicle and ensuring it meets all safety regulations. Not being aware of these responsibilities can result in additional costs or even legal issues later on. Always take the time to review the terms thoroughly.

Additionally, many people neglect to provide the necessary documentation, such as proof of insurance. This is not just a formality; it is a legal requirement that protects both parties involved. Without adequate insurance, the Lessee could face severe financial repercussions in case of an accident. It’s essential to ensure that all documentation is in order and submitted along with the lease agreement.

Another critical mistake is failing to understand the implications of the lease duration. The agreement specifies the term of the lease and any conditions for termination. Not being clear on these points can lead to misunderstandings about when the lease can be canceled or renewed. Ensure that the start and end dates are clearly stated and understood to avoid any confusion.

Finally, many individuals do not consult with a legal professional before signing the lease. While it may seem like an unnecessary step, having a knowledgeable person review the agreement can help identify potential pitfalls and clarify any confusing language. This precaution can save significant time, money, and stress in the long run. Taking the time to consult with an expert can make all the difference in ensuring a smooth leasing process.

Documents used along the form

The Commercial Vehicle Lease Agreement is a vital document that outlines the terms and responsibilities between the Lessor and Lessee. In addition to this agreement, there are several other forms and documents that may be used in conjunction with it. Each of these documents serves a specific purpose and is essential for ensuring compliance and clarity in the leasing process.

Exhibit 1 - Vehicle Description: This attachment provides detailed information about the vehicle(s) being leased, including make, model, year, and identification numbers. It is crucial for identifying the specific vehicles covered under the lease.
Insurance Certificate: This document serves as proof that the Lessee has obtained the necessary insurance coverage for the leased vehicle(s). It must meet state requirements and protect both parties from liability.
Preventive Maintenance Record: This record tracks all maintenance activities performed on the leased vehicle(s). It ensures that the Lessee adheres to maintenance guidelines and helps in maintaining the vehicle's condition.
Transfer of Registration Form (MVR 330): This form is required for transferring the vehicle registration to the Lessee. It must be completed and submitted to the North Carolina Division of Motor Vehicles.
Service Agreement: If the Lessee is a private operator, this agreement outlines the terms of service provided to the Lessor. It may include details on compensation and operational expectations.
Liability Waiver: This document outlines the responsibilities of the Lessee in case of accidents or damages. It protects the Lessor from claims arising from the use of the leased vehicle(s).
Inspection Report: This report documents the condition of the vehicle(s) at the time of leasing. It serves as a reference for both parties regarding any pre-existing damage or issues.
Compliance Certification: This document certifies that the Lessee complies with all applicable federal and state regulations regarding the operation of the leased vehicle(s).

These documents collectively ensure that both parties are protected and that the leasing process runs smoothly. It is important to review each document carefully to understand its implications fully.

Similar forms

The Commercial Vehicle Lease Agreement form shares similarities with several other documents commonly used in leasing and rental agreements. Here’s a list of six documents that are similar to the Commercial Vehicle Lease Agreement, along with a brief explanation of how they relate:

Residential Lease Agreement: This document outlines the terms under which a landlord rents property to a tenant. Like the vehicle lease, it specifies responsibilities, duration, and payment terms, ensuring both parties understand their obligations.
Equipment Lease Agreement: Used for leasing machinery or equipment, this agreement is similar in that it details the terms of use, maintenance responsibilities, and liability issues, just as the vehicle lease does for commercial vehicles.
Rental Car Agreement: This document governs the rental of vehicles for short periods. It includes terms about usage, insurance, and liability, paralleling the provisions found in the Commercial Vehicle Lease Agreement.
Commercial Property Lease: This agreement is for leasing commercial real estate. It includes terms regarding rent, maintenance, and use of the property, much like how the vehicle lease covers vehicle use and maintenance responsibilities.
Sublease Agreement: This document allows a tenant to lease property they are renting to another party. It mirrors the vehicle lease in that it includes terms for consent, responsibilities, and duration, emphasizing the importance of written agreements.
Service Agreement: Often used in conjunction with leases, this document outlines the terms of services provided by one party to another. It shares similarities with the vehicle lease in detailing responsibilities and compliance with laws and regulations.

Dos and Don'ts

When filling out the Commercial Vehicle Lease Agreement form, it is essential to follow specific guidelines to ensure compliance and accuracy. Here is a list of things you should and shouldn't do:

Do read the entire agreement thoroughly before filling it out.
Do provide accurate and complete information about the Lessor and Lessee.
Do ensure that all required signatures are obtained before submission.
Do keep a copy of the completed form for your records.
Don't leave any sections blank; fill in all necessary fields.
Don't alter any terms of the agreement without written consent from the Lessor.
Don't ignore the legal obligations outlined in the agreement.

Misconceptions

Misconception 1: The Lessor is responsible for all maintenance and repairs of the leased vehicle(s).

This is incorrect. The Lessee is fully responsible for maintaining the vehicle(s) in good condition, which includes all repairs, operation, and maintenance costs. The Lessor does not provide any maintenance services.

Misconception 2: The lease term can exceed five years.

The maximum term for any lease agreement is five years. This limit is in place to ensure that agreements remain current and relevant to the needs of both parties.

Misconception 3: Insurance coverage is optional for the Lessee.

This is not true. The Lessee must maintain sufficient insurance coverage throughout the lease period. This includes liability insurance as well as fire and casualty insurance for the vehicle(s).

Misconception 4: The Lessee can sublease the vehicle(s) without permission.

The Lessee is prohibited from subleasing the vehicle(s) to any third party without the express written consent of the Lessor and the North Carolina Department of Transportation.

Misconception 5: All federal and state requirements are optional.

This is misleading. The Lessee is obligated to comply with all applicable federal and state requirements as outlined in the lease agreement. Noncompliance can lead to serious consequences, including termination of the agreement.

Misconception 6: The Lessee does not need to document maintenance activities.

In fact, the Lessee must document all vehicle maintenance activities. Keeping accurate records is essential for demonstrating compliance with the lease agreement and for ensuring the vehicle's safety and operational readiness.

Key takeaways

When filling out and using the Commercial Vehicle Lease Agreement form, there are several key points to keep in mind:

Understand the Responsibilities: The Lessee is responsible for all aspects of vehicle maintenance, operation, and insurance coverage. This includes adhering to safety standards and ensuring compliance with state and federal regulations.
Insurance Requirements: Continuous liability insurance is mandatory for the duration of the lease. The Lessee must provide proof of this insurance to the Lessor and ensure that it covers all necessary risks, including damage and liability.
Lease Terms: The lease duration cannot exceed five years, and either party may terminate the agreement with 30 days' written notice. Be aware of the specific start and end dates when entering into the agreement.
Compliance with Regulations: The Lessee must comply with all federal and state requirements outlined in the agreement. This includes adhering to nondiscrimination laws and ensuring that all drivers meet licensing requirements.