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The intricacies of a Commercial Vehicle Lease Agreement form are manifold and critical for both the lessor and lessee to understand and adhere to, especially when such agreements are facilitated under specific state and federal regulations. The agreement in discussion, revised as per the document dated April 11, serves as a binding contract between an entity referred to as the "Lessor" and another entity known as the "Lessee", outlining the terms under which commercial vehicles are leased. This document not only establishes the rights and responsibilities of both parties but also incorporates by reference any additional agreements with the North Carolina Department of Transportation (NCDoT), alongside adhering to guidelines and mandates set forth by the Federal Transit Administration (FTA) and state management plans. The comprehensive nature of this agreement covers various aspects including the duration of the lease, financial considerations, routine maintenance, insurance requirements, and adherence to federal and state laws. Furthermore, it encapsulates provisions related to vehicle operation, liability, training of personnel, and conditions under which a private operator may be involved. Each clause is designed to ensure the leased vehicles' maintenance and operation align with safety, regulatory compliance, and the public's welfare, elucidating the necessity for lessees to meet specific federal requirements, conflict of interest policies, lobbying restrictions, civil rights adherence, and equal employment opportunity commitments.

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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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File Characteristics

Fact Name Description
Lease Parties This agreement is between a lessor and a lessee, defined at the beginning of the document.
Subcontract Nature The agreement acts as a subcontract under the broader agreement(s) with the North Carolina Department of Transportation (NCDoT).
Vehicle Operation and Maintenance The lessee is responsible for operating and maintaining the leased vehicle(s) safely and in accordance with relevant federal and state guidelines.
Lease Term The lease term, including start and end date, is specified, with a maximum allowable duration of five years.
Financial Considerations The lessee agrees to pay a specified amount per vehicle and cover all costs related to the vehicle's operation and maintenance.
Insurance Requirements The lessee must maintain adequate liability and casualty insurance for the vehicle(s) throughout the lease term.
Compliance with Federal and State Laws The lessee is required to comply with all applicable federal and state laws, including those related to civil rights, lobbying, debarment, and suspensions.
Governing Law The agreement is governed by the laws of the State of North Carolina, the Federal Transit Administration Master Agreement, and the State Management Plan for Federal and State Transportation Programs.

Steps to Writing Commercial Vehicle Lease Agreement

Filling out a Commercial Vehicle Lease Agreement form requires careful attention to detail and a clear understanding of the terms outlined within the document. It's crucial that both the Lessor and Lessee accurately provide and review all necessary information to ensure a mutually beneficial agreement. Here are the steps needed to accurately fill out the form, avoiding common pitfalls and ensuring all parties are well-informed of their responsibilities and rights.

  1. Start by writing the date of the agreement in the space provided at the top of the form.
  2. Enter the full legal names of both the Lessor and the Lessee in the designated spaces.
  3. Review the information regarding the agreement between the North Carolina Department of Transportation (NCDoT) and the Lessor, and ensure you understand how it incorporates by reference.
  4. In Article I, describe in detail the vehicle(s) being leased, including make, model, and vehicle identification number (VIN), in Exhibit 1, and attach it to the agreement.
  5. Specify the terms of the lease, including commencement and end date, in Article II.
  6. In Article III, clearly state the agreed payment per vehicle for the term of the lease.
  7. Review and understand the responsibilities for routine maintenance and operation expenses outlined in Article IV.
  8. Ensure the appropriate liability and insurance requirements are met as described in Article V. Include information regarding the insurance policy and provide proof of insurance to the Lessor.
  9. Confirm that vehicle operators are properly trained, as stated in Article VI, and that proof of such training can be provided upon request.
  10. If applicable, acknowledge the specific conditions under which leasing to a private operator is allowed as outlined in Article VII.
  11. Understand and comply with all Federal/State requirements and special conditions listed in Article VIII. This includes compliance with federal changes, conflict of interest policies, lobbying restrictions, debarment and suspensions, and civil rights obligations.
  12. For each section requiring a signature or initial, ensure both the Lessor and the Lessee sign or initial as indicated to confirm agreement and understanding of the terms.
  13. Double-check all entered information for accuracy and completeness before finalizing the document.

Once all steps have been carefully followed and the form has been reviewed for accuracy, the document should be signed and dated by both parties to finalize the agreement. Keeping a copy for your records is advisable for future reference or if any discrepancies arise. This process not only legalizes the lease but also helps in maintaining a transparent and accountable relationship between the Lessor and the Lessee throughout the term of the lease.

Important Details about Commercial Vehicle Lease Agreement

What is the commencement date for a Commercial Vehicle Lease Agreement, and how is the lease term defined?

The commencement date for a Commercial Vehicle Lease Agreement is the date when the vehicle(s) are placed in service by the Lessee. The term of the lease is defined in months or years, starting from the commencement date and continuing until the specified end date, unless the agreement is canceled or terminated earlier by either the Lessor or the Lessee, or by mutual consent, with 30 days advance notice. The maximum term for any lease agreement cannot exceed five years.

Who is responsible for the maintenance and operation costs of the leased vehicle(s)?

The Lessee is fully responsible for all costs associated with the maintenance, operation, and repair of the leased vehicle(s). This includes routine costs such as gasoline, oil, parts, and service charges. The Lessee must also maintain the vehicle(s) in a condition that meets or exceeds manufacturer guidelines and must document all maintenance activities according to a Preventive Maintenance Program/Schedule. The Lessee is solely responsible for ensuring the vehicles remain in a state of high cleanliness, safety, and mechanical soundness, without any assistance from the Lessor in terms of parts, services, or personnel.

What insurance requirements must the Lessee comply with under the agreement?

The Lessee must secure sufficient insurance coverage to protect against liabilities, damages, or losses that may occur during the operation of the leased vehicle(s). This includes continuous liability coverage in compliance with North Carolina law while the vehicle is registered and comprehensive and collision coverage sufficient to repair or replace the vehicle(s) in case of damage or destruction. The Lessee must provide the Lessor with a copy of the insurance policy and proof of adequate insurance annually. Failure to maintain adequate insurance is considered a breach of the agreement and may lead to its termination.

How does the agreement address vehicle operation training?

The agreement requires that the Lessee ensures all vehicle operators are adequately trained on the operation of the vehicles and the correct use of any special equipment, such as wheelchair lifts and tie-downs. The Lessee must provide proof of such training upon the Lessor's request. This requirement ensures the safety and effectiveness of vehicle operation for the benefit of all passengers and complies with federal and state regulations concerning vehicle operator training.

What are the procedures if the Lessee wants to sublease the equipment?

The Lessee is not permitted to sublease the Lessor’s equipment to another entity without the express written consent of both the Lessor and the North Carolina Department of Transportation/Public Transportation Division (NCDOT/PTD). This restriction is in place to ensure that any subleasing arrangements comply with the original terms of the agreement and to maintain the integrity and accountability of the leased vehicle(s)’ operation and usage.

Common mistakes

Filling out a Commercial Vehicle Lease Agreement form requires close attention to detail and a thorough understanding of the agreement's terms and conditions. However, errors can occur, which might lead to misunderstandings or legal issues down the line. Here are five common mistakes to avoid:

Firstly, incomplete or inaccurate information about the parties involved is a frequent mistake. This section requires the full legal names of the lessor (the party who owns the vehicles) and the lessee (the party leasing the vehicles). Failing to provide clear and accurate information here can lead to confusion about who is legally bound by the agreement and may result in disputes or difficulties in enforcement.

Another common error is neglecting to specify the terms of the lease accurately, including the commencement and termination dates. The term of the lease defines the period during which the lessee is authorized to use the vehicles. Mistakes in this section can lead to disagreements about when the vehicles should be returned or how long the lessee has the rights to use them. This is crucial for planning and legal compliance on both sides.

Additionally, overlooking the need for a comprehensive description of the leased vehicles in Exhibit 1 is a significant omission. This exhibit should list each vehicle's make, model, year, and any other identifying details. Leaving this information vague or incomplete can lead to disputes over which vehicles were actually leased and their condition at the time of the lease.

A further mistake involves misunderstanding the maintenance and operational responsibilities. The agreement specifies that the lessee is responsible for routine maintenance, operations, and repairs. Confusion or ignorance about this clause can lead to vehicles being poorly maintained, which might increase liability for the lessee or result in financial penalties.

Last but not least, failing to comply with insurance requirements is a critical error. The agreement requires the lessee to maintain adequate insurance coverage for the duration of the lease. This is meant to protect both parties in the event of an accident or damage to the vehicle. Lack of proper insurance can lead to severe financial consequences and legal liabilities for the lessee if an uncovered event occurs.

Each of these mistakes can be avoided by carefully reviewing the Commercial Vehicle Lease Agreement form before submission, ensuring all information is complete and accurate, and fully understanding the obligations it entails. This can help in preventing future disputes and ensuring a smooth leasing experience.

Documents used along the form

When entering a Commercial Vehicle Lease Agreement, several accompanying forms and documents are necessary to ensure a comprehensive and legally sound transaction. These additional documents support the lease agreement by providing detailed information, establishing compliance with legal requirements, and offering protections to both the lessor and lessee.

  • Vehicle Condition Report: This document records the condition of the vehicle at the time of leasing. It includes details about any existing damages or issues, ensuring that the lessee is not held responsible for pre-existing conditions.
  • Insurance Certificate: Proof of insurance is required to protect both parties in the event of an accident, theft, or damage. The insurance certificate should meet the minimum coverage requirements as outlined in the lease agreement.
  • Maintenance and Repair Log: Used to document all maintenance and repairs performed on the vehicle during the lease term. This helps in monitoring the vehicle's upkeep and ensures compliance with the lease agreement's conditions regarding vehicle maintenance.
  • Driver's License and Commercial Driver's License (CDL) Verification: A valid driver’s license or CDL (if required for the leased vehicle) ensures that the lessee or any designated driver is legally authorized to operate the commercial vehicle. Verification helps mitigate liability risks.
  • Lease Termination Checklist: This form is used at the end of the lease term to document the condition of the vehicle, ensure all terms of the lease have been met, and facilitate a smooth handover of the vehicle back to the lessor.

These documents work in conjunction to lay a foundation for clear expectations, rights, and responsibilities for both parties involved in a Commercial Vehicle Lease Agreement. Not only do they provide a legal framework, but they also offer a practical guide for the maintenance and management of the leased vehicle, ensuring a successful partnership between the lessor and lessee.

Similar forms

A Residential Lease Agreement shares similarities with a Commercial Vehicle Lease Agreement in that both set out the terms, conditions, and duration under which a property (in this case, a vehicle or residential property) is leased to a lessee by a lessor. These agreements typically include clauses for payment, maintenance responsibilities, and liability issues, ensuring both parties understand their obligations and rights.

An Equipment Lease Agreement, much like the Commercial Vehicle Lease, outlines terms for leasing tangible assets other than vehicles. It details the specifics about the equipment, lease duration, payment terms, and maintenance obligations. Both documents ensure the lessee is responsible for the upkeep and proper use of the leased items, highlighting the possibility of termination upon failure to meet terms.

A Sublease Agreement, while focusing on property subletting aspects, resembles the Commercial Vehicle Lease Agreement in structure. It involves an initial lessee (similar to the lessor in the vehicle lease) who sublets to another party under agreed conditions, often incorporating original lease terms by reference, as seen with state and federal regulations in a vehicle lease.

The Service Level Agreement (SLA) parallels the Commercial Vehicle Lease Agreement in its detailed description of services provided, performance standards, and responsibilities of each party. Although SLAs are more common in service provision contracts, both outline the expectations and obligations to prevent conflicts and ensure quality and compliance throughout the lease term.

A Purchase Agreement, while primarily for acquisitions rather than leases, shares the detail orientation with a Commercial Vehicle Lease Agreement. Both agreements necessitate clear descriptions of the object of the contract (a vehicle or other asset), payment terms, and conditions under which the agreement may be adjusted or terminated.

Licensing Agreements can be akin to Commercial Vehicle Lease Agreements in the sense that they grant certain rights under specified conditions. Instead of leasing physical assets, licensing deals often involve intellectual property. However, similar elements like term duration, usage rights, fees, and renewal or termination conditions are meticulously regulated in both documents.

A Franchise Agreement has parallels with the vehicle lease because it outlines the terms under which the franchisee operates a portion of the franchisor's business. Both contain clauses about operational standards, brand usage, financial obligations, and the incorporation of broader agreements (such as federal regulations) by reference.

Commercial Real Estate Lease Agreements, while specifically for real estate, relate closely to Commercial Vehicle Lease Agreements through their attention to detail regarding the lease property, payment conditions, maintenance, insurance requirements, and compliance with laws. Both deal with commercial assets' utilization under conditions beneficial to both the lessor and lessee.

An Employment Contract, though designed for employer-employee relationships, connects with a Commercial Vehicle Lease Agreement's emphasis on terms and conditions governing a relationship. Elements like duration, responsibilities, compensation, and conditions for termination are crucial in structuring expectations and obligations.

Last, a Loan Agreement shares the principle of defining terms for a financial relationship between parties. Similar to a vehicle lease's payment terms and conditions, loan agreements detail the amount borrowed, repayment schedule, interest rates, and what constitutes default. Both contracts provide a legal framework that safeguards the interests of the involved parties through structured commitments.

Dos and Don'ts

When taking the steps to fill out a Commercial Vehicle Lease Agreement form, it's important to approach the task with diligence and attention to detail. Here are a few essential dos and don'ts to keep in mind:

Do:

  • Review all referenced documents: Make sure to thoroughly read and understand the NCDoT agreement(s), the FTA Master Agreement, the State Management Plan, and their amendments or revisions that are incorporated by reference into the lease agreement.
  • Comply with insurance requirements: Always provide up-to-date proof of adequate insurance as required by the agreement and ensure that the coverage meets or exceeds the stipulated requirements.
  • Record and track maintenance: Implement a Preventive Maintenance Program that aligns with the manufacturer's guidelines and recommendations, documenting all maintenance activities as specified in the agreement.
  • Ensure all operators are properly trained: Confirm that anyone operating the leased vehicle(s) has received appropriate training, especially on the use of specialized equipment like wheelchair lifts, tie-down mechanisms, and restraints.

Don't:

  • Sublease without permission: Avoid subleasing the leased vehicle(s) to another entity without the express written consent of the Lessor and the North Carolina Department of Transportation/Public Transportation Division.
  • Ignore the terms of the lease: Do not overlook the specified commencement and termination dates, as well as the conditions under which the lease may be renewed or terminated.
  • Overlook federal and state requirements: Failure to comply with the applicable federal and state laws, regulations, and requirements specified in the lease agreement could result in a breach of contract.
  • Neglect vehicle maintenance: Failing to maintain the vehicle(s) in a manner that ensures safety and mechanical soundness can lead to liability issues and potentially terminate the lease agreement.

Misconceptions

When entering into a Commercial Vehicle Lease Agreement, especially one as detailed as the form revision from April 2011 associated with the North Carolina Department of Transportation (NCDoT), there are several common misconceptions that can arise. Understanding these misconceptions is crucial for both lessors and lessees to ensure smooth operations and adherence to legal requirements. Here are eight common misunderstandings:

  • Misconception 1: The agreement is only between the lessor and lessee.
  • This isn't entirely accurate. While the contract is indeed between the lessor and the lessee, it also involves the NCDoT as a subcontract, incorporating broader agreements and requirements that extend beyond the two primary parties.

  • Misconception 2: Any vehicle can be leased without specific licensing.
  • Contrary to this belief, commercial vehicles with a capacity for 16 or more passengers require the lessee to have a Commercial Driver's License (CDL), ensuring compliance with state and federal regulations.

  • Misconception 3: The lessee is not responsible for vehicle maintenance and repair costs.
  • This misunderstanding could lead to unexpected expenses. The lessee is, in fact, responsible for all costs related to the maintenance, operation, and repair of the leased vehicle(s).

  • Misconception 4: Insurance is optional for leased vehicles.
  • Insurance is mandatory. The lessee must maintain adequate liability and comprehensive and collision coverage throughout the lease period, ensuring coverage for any damages or losses incurred.

  • Misconception 5: The lease agreement does not require adherence to federal and state laws.
  • This is false. The agreement clearly stipulates that lessees must comply with all relevant state and federal regulations, including changes to these laws over the lease term.

  • Misconception 6: Subleasing is permitted under the agreement.
  • Subleasing the lessor's equipment to another entity without express written consent from both the lessor and the NCDOT/Public Transportation Division (PTD) is not allowed, safeguarding the interests of all parties involved.

  • Misconception 7: Compliance with civil rights and nondiscrimination laws is optional.
  • All lessees must comply with civil rights and nondiscrimination laws, including ensuring equal employment opportunity and preventing discrimination based on race, color, creed, national origin, sex, age, or disability.

  • Misconception 8: The lessee is not required to provide documentation or reports on the vehicle's operation and maintenance.
  • In contrast to this belief, the lessee must provide periodic reports and maintain documentation of all maintenance activities to ensure compliance with the lease agreement and governmental regulations.

Clarifying these misconceptions is essential for a successful partnership between the lessor and lessee, ensuring both parties fulfill their responsibilities and remain compliant with legal requirements.

Key takeaways

When dealing with a Commercial Vehicle Lease Agreement, especially in contexts involving the North Carolina Department of Transportation (NCDOT) and related federal guidelines, it's essential to grasp the complexities of such agreements to ensure compliance and understand the obligations of both parties involved. Here are key takeaways from the Commercial Vehicle Lease Agreement form:

  • Both the Lessor (vehicle owner) and the Lessee (vehicle user) are bound by the conditions stipulated in agreements with third parties, including the North Carolina Department of Transportation (NCDOT) and the Federal Transit Administration (FTA), ensuring that the lease operations adhere to broader public transportation standards and guidelines.
  • The lease specifies that vehicles should be used in ways that serve the public's best interest, underpinning the responsibility of the Lessee to maintain the vehicles and operate them safely and efficiently for the welfare of employees and passengers alike.
  • Commercial Driver's License requirements are emphasized for vehicles that can transport 16 or more passengers, highlighting the importance of adhering to state and federal regulations concerning driver qualifications.
  • Lessee's financial responsibilities extend beyond monthly lease payments to include all costs associated with the operation, maintenance, and repair of the leased vehicle(s), portraying the lease as a comprehensive commitment rather than a simple rental agreement.
  • Maintenance and operation expenses stress the Lessee’s obligation for the vehicle's upkeep, ensuring high standards of cleanliness, safety, and mechanical soundness throughout the lease term.
  • Insurance coverage is critical, with the Lessee required to acquire adequate liability, fire, and casualty insurance, protecting all parties associated with the lease from financial loss due to accidents, damages, or other unforeseen events.
  • The agreement includes provisions for training, asserting that the Lessee ensures drivers are proficient in operating the vehicles and any specialized equipment they might contain, such as wheelchair lifts and restraints.
  • Compliance with federal and state laws and regulations is a core aspect of the lease, with the Lessee responsible for adhering to existing and future legal changes, civil rights, equal employment opportunities, and lobbying restrictions, underscoring the legal complexities of operating leased commercial vehicles.

Understanding these takeaways is paramount for both parties entering a Commercial Vehicle Lease Agreement, ensuring they meet all legal, operational, and ethical standards required for a successful partnership within the public transportation sector.

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