CVL Business Entities & Proper Signature - JOB AID

CVL Business Entities and Proper Signatures

TABLE OF CONTENTS

Introduction.............................................................................................................................................................................. 6 Sole Proprietorship.................................................................................................................................................................. 8 BUSINESS CREDIT APPLICATION .............................................................................................................................. 8 LEASE CONTRACT: ...................................................................................................................................................... 9 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 10 Trust ...................................................................................................................................................................................... 11 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 11 LEASE CONTRACT: .................................................................................................................................................... 12 TRUST GUARANTY – FORM 514:.............................................................................................................................. 13 CERTIFICATION OF TRUST: ..................................................................................................................................... 14 General Partnership & Limited Partnership .......................................................................................................................... 15 General and Limited Partnership ...................................................................................................................................... 15 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 15 LEASE CONTRACT: .................................................................................................................................................... 16 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 17 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 18 General and Limited Partnership with Personal Guarantor .............................................................................................. 19 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 19 LEASE CONTRACT: .................................................................................................................................................... 20 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 21 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 22 General and Limited Partnership with Co-Lessee ............................................................................................................ 23 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 23 LEASE CONTRACT: .................................................................................................................................................... 24 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 25 CERTIFICATE OF AUTHORITY .................................................................................................................................. 26 Corporation............................................................................................................................................................................ 27 Corporation ....................................................................................................................................................................... 27 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 27 LEASE CONTRACT: .................................................................................................................................................... 28 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 29 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 30 Corporation with Personal Guarantor ................................................................................................................................ 31 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 31 LEASE CONCTRACT: ................................................................................................................................................. 32 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 33 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 34

Corporation with Co-Lessee .............................................................................................................................................. 35 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 35 LEASE CONTRACT: .................................................................................................................................................... 36 COMMERCIAL ADDEDNDUM TO LEASE AGREEMENT: ......................................................................................... 37 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 38 Limited Liability Company ..................................................................................................................................................... 39 Limited Liability Company................................................................................................................................................. 39 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 39 LEASE CONTRACT: .................................................................................................................................................... 40 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 41 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 42 Limited Liability Company with Personal Guarantor .......................................................................................................... 43 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 43 LEASE CONTRACT: .................................................................................................................................................... 44 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 45 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 46 Limited Liability Company with Co-Lessee ........................................................................................................................ 47 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 47 LEASE CONTRACT: .................................................................................................................................................... 48 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 49 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 50 Business with a DBA............................................................................................................................................................. 51 Business with a DBA ........................................................................................................................................................ 51 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 51 LEASE CONTRACT: .................................................................................................................................................... 52 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 53 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 54 Business with a DBA and a Personal Guarantor ................................................................................................................ 55 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 55 LEASE CONTRACT: .................................................................................................................................................... 56 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 57 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 58 Business with a DBA and a Co-Lessee .............................................................................................................................. 59 BUSINESS CREDIT APPLICATION: ........................................................................................................................... 59 LEASE CONTRACT: .................................................................................................................................................... 60 COMMERCIAL ADDENDUM TO LEASE AGREEMENT:............................................................................................ 61 CERTIFICATE OF AUTHORITY: ................................................................................................................................. 62

Introduction These are the examples for CVL Business Entities and Proper Signatures

Why must the business entities and signatures be exact?  Correct legal name of business ensures proper credit bureau reports are pulled on application  Correct legal name of business required for enforceability of contract and any UCC filings  Treasury Department’s OFAC (Office of Foreign Assets Control) division requires lenders to verify that business entities and all corresponding owners do not have a positive “match” on the OFAC list

Why?

NOTE: Signature sections must be completed properly as follows for legality of contract: 1. Correct legal name of business 2. Printed name and title of individual signing contract on behalf of the business 3. Signature of individual signing contract on behalf of the business

The Commercial Credit Analyst will be using http://www.secstates.com/ or http://www.nrai.com/OnlineDatabaseLinks.aspx to verify applicants’ correct legal name and good standing with applicable Secretary of State The legal name lets us know the business entity type and how the contract needs to be signed The Analyst is also verifying if the company is active and in good standing. If a company is not in good standing, GM Financial may not have recourse on the application. If it is a partnership, the analyst will request a copy of the partnership agreement and/or verify the partnership with the Secretary of State Business name on the contract must match legal name, not the DBA, of the business for GM Financial to have recourse on the deal If it is a Trust, the analyst will request a copy of the full trust agreement or trust certificate and GM Financial legal will review and determine the trust’s ability to enter into a contract Dealertrack, RouteOne and LOS have varying character limitations on the customer name field The dealer callback might not have the complete name in the customer name field If the name corrected by an analyst is cutoff, the analyst will add the stipulation, “Approved Business Name Modified From Name Submitted”; the analyst will put the legal name of the business in the comments field for dealer clarification Legal has approved allowing the name to truncate in the system and having the dealer handwrite any missing characters on the contract and all supporting documents . All parties must initial each document after the handwritten legal name Legal entity name must be completely spelled out, abbreviations are not accepted

Legal Names

Legal Names

System Limitations on

CVL Business Entities and Proper Signatures October 2015

Introduction

1. The Primary Use box must be selected on all CVL contracts 2. The “business” box must be marked, if not marked the contract will be returned

Primary Use

Personal Guarantor – The party which promises to pay the lease payments to the lessor in the event the lessee does not. Personal Guaranty - A document held by the finance company in a finance transaction allowing it to pursue an individual for payment should the customer default. Not shown on the contract or addendums. Co-Lessee – a person, business or other entity to whom shares equal ownership in a lease that is granted. A Co-Lessee is on the face of the contract and on the registration Lessee – a person, business or other entity to which a lease is granted.

Definitions

CVL Business Entities and Proper Signatures October 2015

Sole Proprietorship A sole proprietorship is an unincorporated business owned and run by one individual. The sole proprietor is entitled to all profits and is responsible for all business debts, losses and liabilities. The individual who is the proprietor must sign the agreement to purchase or lease property and is personally liable for the account. If the sole proprietor chooses to operate under a name different than his/her own, then the individual will most likely have to file a fictitious name with the Secretary of State (also known as an assumed name, trade name or DBA name). See examples below for:

Earnest P. White, DBA Ernie’s Plumbing BUSINESS CREDIT APPLICATION

CVL Business Entities and Proper Signatures October 2015

Sole Proprietorship LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Sole Proprietorship COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Trust A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to beneficiaries. Trusts are not legal entities, so they cannot be a party to contracts. The trustee is the acting contracting party. See examples below for: Lucy Brown, as Trustee of the Charles Brown Irrevocable Trust Dated February 1, 1995

BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Trust LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Trust TRUST GUARANTY – FORM 514:

CVL Business Entities and Proper Signatures October 2015

Trust CERTIFICATION OF TRUST:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership A General Partnership is a business owned by two or more persons voluntarily associated as partners. Typically, all partners (or one partner with the written consent of the other partners) must sign the agreement to purchase or lease property. A Limited Partnership is a business entity owned by two or more persons voluntarily associated as partners. The General Partners are responsible for the business operations and are authorized by the partnership agreement to purchase or lease property. Typically, all General Partners must sign or one General Partner with the written consent of all General partners. Limited Partners are investors in the partnership and cannot bind the partnership. See examples below for: • Smith & Jones Landscaping • Smith & Jones Landscaping with Tom Smith as Personal Guarantor • Smith & Jones Landscaping with Tom Smith as Co-Lessee

General and Limited Partnership BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership, cont. LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership, cont. COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership, cont. CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Personal Guarantor BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Personal Guarantor , cont. LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Personal Guarantor , cont. COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Personal Guarantor , cont. CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Co-Lessee BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Co-Lessee , cont. LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Co-Lessee , cont. COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

General Partnership & Limited Partnership General and Limited Partnership with Co-Lessee , cont. CERTIFICATE OF AUTHORITY

CVL Business Entities and Proper Signatures October 2015

Corporation A Corporation is a business that is organized as a legal entity separate from its owners. It is chartered by the state with ownership divided into shares of stock. May be formed as C Corp or S Corp. An S Corp is a corporation with the Subchapter S designation from the IRS. The Corporation’s Board of Directors may issue a Corporate Resolution granting authority for an individual (usually an officer) to sign on behalf of the Corporation. See examples below for: • Troy Excavation, Inc. • Troy Excavation, Inc. Jerry Troy as Personal Guarantor • Troy Excavation, Inc. Jerry Troy as Co-Lessee Corporation BUSINESS CREDIT APPLICATION:

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CVL Business Entities and Proper Signatures October 2015

Corporation LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Corporation COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Corporation CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Corporation with Personal Guarantor BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Corporation with Personal Guarantor LEASE CONCTRACT:

CVL Business Entities and Proper Signatures October 2015

Corporation with Personal Guarantor COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Corporation with Personal Guarantor CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Corporation with Co-Lessee BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Corporation with Co-Lessee LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Corporation with Co-Lessee COMMERCIAL ADDEDNDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Corporation with Co-Lessee CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company A Limited Liability Company (LLC) is an entity created under state law, with its members generally treated as partners for tax purposes. An operating agreement governs the LLC’s operations and rights of its members. The operating agreement indicates how the company is to be managed (typically by members, a managing member or officers). See examples below for:

• Rogers Heating & Air, L.L.C. • Rogers Heating & Air, L.L.C. with Tony Rogers as Personal Guarantor • Rogers Heating & Air, L.L.C. with Tony Rogers as Co-Lessee Limited Liability Company BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Personal Guarantor BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Personal Guarantor LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Personal Guarantor COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Personal Guarantor CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Co-Lessee BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Co-Lessee LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Co-Lessee COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Limited Liability Company with Co-Lessee CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA DBA is an abbreviation for “doing business as”. This is a trade name or Assumed name used by an individual business, which is not recognized as a separate legal business entity. In this instance the business would be governed by the rules based on the entity type (INC, LLC, etc.) the DBA is attached to. See examples below for: • Rogers Heating & Air, L.L.C. DBA Heating Supply Services • Rogers Heating & Air, L.L.C. DBA Heating Supply Services with Tony Rogers as Personal Guarantor • Rogers Heating & Air, L.L.C. DBA Heating Supply Services with Tony Rogers as Co-Lessee Business with a DBA BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA and a Personal Guarantor BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA and a Personal Guarantor LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA and a Personal Guarantor COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA and a Personal Guarantor CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA and a Co-Lessee BUSINESS CREDIT APPLICATION:

CVL Business Entities and Proper Signatures March 2015 - EXTERNAL

Business with a DBA and a Co-Lessee LEASE CONTRACT:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA and a Co-Lessee COMMERCIAL ADDENDUM TO LEASE AGREEMENT:

CVL Business Entities and Proper Signatures October 2015

Business with a DBA and a Co-Lessee CERTIFICATE OF AUTHORITY:

CVL Business Entities and Proper Signatures October 2015

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