Under Renegotiations, extensions, and assumptions-12 CFR 213.5; any lease that is renegotiated or extended by longer than six months is considered to be a new lease, subject to new disclosure requirements, except when:
Under Renegotiations, extensions, and assumptions-12 CFR 213.5; any lease that is renegotiated or extended by longer than six months is considered to be a new lease, subject to new disclosure requirements, except when:
Under 12 CFR 213.5, a lease renegotiated or extended by longer than six months is treated as a new lease subject to new disclosure requirements, with certain exceptions. One exception involves the deferral of one or more payments, regardless of whether a charge for the deferral applies. Another exception occurs in multiple-item leases where property is added, deleted, or substituted, provided that the average periodic payment does not change by more than 35 percent. These circumstances do not trigger new disclosure requirements, unlike extensions or substantive changes to leases.
This option correctly identifies an exception to the rule that a lease renegotiated or extended for longer than six months is considered a new lease requiring new disclosures. If the lease property is substituted with property of substantially equivalent or greater value and no other lease terms are changed, the transaction does not trigger new disclosure requirements under the regulation.