Through a Put/Call Agreement, AARM makes a commitment to the Lessor to purchase the equipment for a guaranteed amount upon expiry of the underlying lease, subject to pre-agreed use, maintenance and return conditions. A small fee is charged up front to cover administrative costs.

At the expiry of the lease the equipment is delivered to AARM in return for payment by AARM to the Lessor of the guaranteed amount. AARM would then seek to re-market the equipment on the secondary market.

Other structures are also possible in order to provide the greatest degree of flexibility to the Lessee and the Lessor.

AARM is a registered business name of Commonwealth Bank of Australia. AARM can offer you and your clients the added confidence that all residual values issued by AARM have the stability and strength of an AA rated bank guarantee. Confidentiality is assured.