Equipment Lease Agreement with Personal Guaranty
Lease machinery, vehicles, tools or office equipment in Puerto Rico: fixed rent, deposit, maintenance and insurance duties, Stipulated Loss Value table, purchase or renewal options, early termination, default remedies, precautionary filing with the Department of State, IVU and CRIM treatment. Delivery and Acceptance Certificate and Personal Guaranty included.
Who it is for
A business that rents out, or rents in, equipment for a fixed term — construction and farm machinery, vehicles, kitchen and medical equipment, computers, tools — with fixed rent, a deposit, clear maintenance and insurance duties, a buyout or renewal option at the end, and an owner's personal guaranty when the lessee is a small company.
What is inside
- Equipment Lease Agreement: Key Terms table + 10 articles — true lease and precautionary filing, delivery and acceptance, AS-IS disclaimer, rent, taxes and deposit, maintenance and alterations, insurance and indemnity, risk of loss with Stipulated Loss Value, default and remedies, end-of-term return, purchase or renewal options and early termination, general terms with optional jury waiver and chattel-paper clause
- Schedule A equipment list and Delivery and Acceptance Certificate · Schedule B Stipulated Loss Value table · Schedule C Personal Guaranty
- Instruction Sheet: true lease vs disguised sale, setting rent and the loss-value table, deposit and late charges, maintenance options, insurance certificates, vehicle registration, filing the precautionary financing statement, sales and property tax, after-signing checklist, when the form is not enough
The first pages
Rendered from the actual form. Yellow fields are the ones you fill in; the rest is already written.
EQUIPMENT LEASE AGREEMENT
[LESSOR NAME] · [LESSEE NAME]
The information in this table is incorporated into the Lease that follows. Where the Lease refers to an item "in the Key Terms," it means the entry below.
| Item | Entry |
|---|---|
| Lessor (owner) | [LESSOR NAME], a [LESSOR ENTITY TYPE — e.g., "Puerto Rico limited liability company" OR "individual"], with its address at [LESSOR ADDRESS] |
| Lessee (user) | [LESSEE NAME], a [LESSEE ENTITY TYPE — e.g., "Puerto Rico corporation"], with its address at [LESSEE ADDRESS] |
| Equipment | The equipment described in Schedule A (the "Equipment"), with every accessory, attachment, manual and replacement part |
| Location of use | [EQUIPMENT LOCATION — address or "the Lessee's job sites within Puerto Rico"]; the Equipment may not be moved elsewhere without the Lessor's written consent |
| Term | [TERM IN MONTHS] months, beginning on the Commencement Date (the "Term") |
| Commencement Date | [COMMENCEMENT DATE] — the date the Equipment is delivered to the Lessee and accepted under Section 2.2 |
| Rent | $[MONTHLY RENT] per month, payable in advance on the [RENT DUE DAY — e.g., "first"] day of each month [, plus the sales and use tax (IVU) if applicable] |
| First and last payments | $[AMOUNT PAID ON SIGNING] paid on signing, applied to [the first month's Rent OR the first and last months' Rent] |
| Security deposit | $[SECURITY DEPOSIT AMOUNT], held by the Lessor without interest and returned under Section 4.4 |
| Late charge | [LATE CHARGE PERCENTAGE]% of any payment more than [GRACE DAYS] days late, plus interest at [DEFAULT INTEREST RATE]% per year on overdue amounts |
| Use | [PERMITTED USE — e.g., "construction and excavation work in the ordinary course of the Lessee's business"]; [TYPE "Maximum use: NUMBER hours or miles per month; excess use charged at $RATE per hour or mile" OR "No usage limit"] |
| Maintenance | [TYPE "Net lease — the Lessee performs and pays for all maintenance, repairs and consumables (Section 5.1)" OR "The Lessor performs scheduled maintenance at its cost; the Lessee pays for repairs caused by misuse (Section 5.2)"] |
| Insurance | Property insurance for not less than $[INSURED VALUE] (replacement value) and liability insurance of not less than $[LIABILITY LIMIT] per occurrence, with the Lessor as loss payee and additional insured (Section 6) |
| Stipulated Loss Value | As stated in Schedule B for each month of the Term (Section 7) |
| End of Term | [TYPE "Return the Equipment (Section 9.1)" OR "Option to purchase for $PURCHASE OPTION PRICE (Section 9.2)" OR "Option to purchase for its fair market value (Section 9.2)" OR "Option to renew for RENEWAL MONTHS months at $RENEWAL RENT per month (Section 9.3)"] |
| Early termination | [TYPE "Not permitted" OR "Permitted after MINIMUM MONTHS months on NOTICE DAYS days' written notice and payment of an early termination fee equal to EARLY TERMINATION MONTHS months' Rent"] |
| Personal guaranty | [TYPE "None" OR "The obligations of the Lessee are guaranteed by GUARANTOR NAME under the Guaranty in Schedule C"] |
| Governing law | Commonwealth of Puerto Rico |
… the document continues for about 9 pages.
The instruction sheet
Every download includes a plain-language instruction sheet. This is how it opens.
INSTRUCTION SHEET
Equipment Lease Agreement
This is the agreement by which a business that owns equipment — a machine, a vehicle, a piece of kitchen or medical or office equipment, a set of tools — lets another business use it for a period in exchange for monthly rent, and gets it back at the end (or sells it to the user under an option). The owner is the Lessor; the user is the Lessee. The form is written as a "net lease": the user pays the rent, keeps the equipment up, insures it, pays the taxes on it and bears the risk of loss, so that the owner's rent is net to it. It includes an owner-maintains alternative for equipment the owner prefers to service itself.
Why a written lease matters. Without one, an equipment owner who lets someone use its machine has no clear right to get it back, no agreed rent, no insurance protecting it, and no say in who operates it; and if the user goes bankrupt, the owner may have to prove the machine is still its own. The lease settles all of that, and the precautionary filing in Section 1.2 protects the owner's title against the user's creditors.
Use this form if: both parties are businesses (or an individual owner leasing to a business); the equipment is movable personal property; the lease runs from a few months to several years; and the parties have agreed the rent, the term and what happens at the end.
Use a different form, or an attorney, if: the lessee is a consumer leasing for personal, family or household use (consumer leasing laws impose disclosures this form does not contain); the lease is really a financed purchase dressed as a lease (the "lease" ends with automatic transfer of title or a nominal purchase price — then it is a secured sale, with different tax and legal treatment); the equipment is aircraft, vessels or rolling stock (federal registration rules apply); the lessor is a bank or leasing company with its own documents; or real property is involved (use the commercial lease, Form PR-RE-01).
• Work in Microsoft Word (or any program that opens .docx files). Every field appears in yellow highlight inside square brackets, for example [LESSOR NAME]. Replace the whole bracket — including the brackets — with your information, and remove the highlight if you wish. Use Find and Replace for names that appear many times.
• Some fields offer choices, written as "OPTION A" OR "OPTION B", or begin with the word TYPE followed by the alternatives. Pick one, type that text in place of the entire bracket, and delete the alternatives. Never leave both options in the signed document.
• Fill in the Key Terms table first. The Articles then refer to it for every business term. Schedule A describes the equipment and is signed again at delivery; Schedule B sets the Stipulated Loss Value; Schedule C is used only if a personal guaranty is required.
• Delete the cover page before signing. Use the search function (Ctrl+F) to search for an opening square bracket when you are done. If the search finds nothing, every field has been completed.
Questions
What file do I get?
A zip with the Puerto Rico edition as Word (.docx) files in English and Spanish, plus the Instruction Sheet. Open in Microsoft Word, Google Docs or LibreOffice.
How do I complete it?
Open the Instruction Sheet first. Replace each yellow [BRACKETED FIELD] with your information, delete the options you do not use, delete the cover page, then print or e-sign.
Can I reuse it?
Yes. The license covers your own business and every company you own; it does not allow resale of the template itself.
Do I need a notary or a lawyer?
The Instruction Sheet says when a signature needs a notary and lists the situations where the form is not enough and an attorney should review it.
Refunds?
Digital downloads are final once delivered. The preview on this page is taken from the actual document so you can see what you are buying.