Residual Value Guaranty

Eligible Aircraft for RVG

• Wide-body, narrow-body and regional jets will be considered
• Concentration on the most popular Airbus and Boeing models

Term of Coverage

• No minimum term required
• Length of coverage: 12 years or less

Amount of Guaranty

• Typical guaranty: 20% to 40% of current value or 50% to 100% of the projected Ascend Soft Value at risk expiry
• RVG pricing varies depending on the attachment point, amount of insurance and portfolio diversification

Aircraft Return Conditions

• In compliance with terms contained in the lease, but special conditions can be added
• Typically full-life, but half-life and other conditions are available

• Office
• Retail
• Industrial
• Warehouse

Term of Coverage

• No minimum term required
• Maximum length of coverage: 30 years

Ownership Structures Insured

• Upon claim payment, Tokio Marine HCC must be in a primary lien position
• Insured must be bankruptcy-remote

Amount of Guaranty

• Typically, RVG of 25% to 35% of fee simple market value is underwritten, but higher residuals are considered depending on the quality of the assets and structure of the transaction
• RVG premium varies depending on the attachment point and amount of guaranty offered but generally is 4% to 7% of the amount guaranteed

Required Property Return Conditions

• In compliance with maintenance terms contained in the property lease
• Industry-standard maintenance must be performed during the lease term
• Property must be returned in good and marketable condition
• In compliance with all rules, regulations and laws regarding environmental condition
• Casualty and condemnation insurance is required