I. Introduction/Purpose

The mission of the Association is to promote and support the general interests of the equipment leasing and finance industry. This mission will be achieved through dissemination and communication of information, representation and promotion, provision of training and educational activities and resources, and development of industry unity and strength.

Aligned with the mission statement and objectives of the Association, the purpose of the Association Code of Fair Business Practices (the “Code”) is to demonstrate to the public and business community the intent of its Members to establish and reinforce industry unifying principles for conduct and business practices that are of the highest level of ethics and professional service to customers and ensure compliance with applicable governmental rules and regulations. The Code identifies basic policy and standards of professional and ethical conduct. Members shall encourage any participant in our industry to comply with the terms of this Code.

Therefore, the Association hereby adopts the following Code of Fair Business Practices for commercial equipment lease and finance transactions and/or services, subject in all instances to applicable Federal and State laws.

II. General Industry Standards of Professional Conduct

• Standard 1: Members shall conduct their business in a manner that reflects positively on themselves, their companies, and the industry. Practices and actions shall be conducted with honesty, integrity, and transparency.
• Standard 2: Members shall act with competence and professionalism using proper care, due diligence, and sound independent judgment in their activities. They shall strive to maintain and improve the professionalism of their organizations through continuing education and development.
• Standard 3: Members that have a known actual or potential conflict of interest with respect to an activity shall disclose the nature of the conflict in writing to the concerned parties.
• Standard 4: Members shall not knowingly misrepresent facts, engage in misleading conduct, or withhold relevant non-proprietary information concerning any aspect of a transaction.
• Standard 5: Members shall comply with applicable confidentiality and non-disclosure agreements and data privacy and protection laws.
• Standard 6: Members shall apply funds received in accordance with the terms of the written agreements between the parties, and in appropriate circumstances (such as refundable security deposits and commitment fees) shall hold such funds in a fiduciary capacity. Members shall not participate in commercial bribery, kickbacks, or similar unlawful compensation arrangements.
• Standard 7: Members shall not make representations to any other party on behalf of another party or act as an agent without the other party’s express approval.
• Standard 8: Members shall not improperly induce any party to breach that party’s contractual obligations to another person.
• Standard 9: Members shall encourage compliance with this Code and shall provide training to ensure that its employees and representatives will comply with this Code and all other applicable Federal, State and local regulations.

III. Compliance

This Code is intended to encourage fair and ethical business practices by Members. This Code is most effective when Members ensure that their own practices and actions conform to the standards set forth in the Code. Nevertheless, per Article VII(2) of the Bylaws, the Association reserves the right, but is not obligated, to censure, suspend or expel from the Association a Member for violating the Code of Fair Business Practices of the Association. In such circumstances, the Member shall cooperate in the Association’s investigation and resolution of the matter. In addition, the Association shall provide the Member with adequate due process, including notice of the alleged violation(s) and an opportunity to respond.

Action by the Association under the Bylaws is the sole means of enforcement of this Code. This Code is not an avenue for customers, competitors, or others to seek a remedy against a Member, nor does the Association adjudicate business disputes involving Members and others.

Finally, this Code is not intended to, and does not, establish a legal standard of care, and it should not be interpreted as such.