Part I of the CLFP exam covers which topics?

• A. Financial and tax accounting, and pricing.
• B. History and purpose of leasing, and leasing law.
• C. Sales and marketing, funding operations, and asset and portfolio management.
• D. Credit and documentation.

Answer: (B)

Part I focuses on the foundational understanding of leasing—the origin, why leasing exists as a financing option, and the legal framework that governs lease agreements. Knowing where leasing came from and its purpose helps you see how leases compare to other financing methods and why businesses choose them. The leasing law portion covers how lease contracts are structured, the key rights and duties of lessors and lessees, and the legal distinctions that affect enforceability, such as true leases versus finance leases, including the role of the Uniform Commercial Code Article 2A in governing lease transactions. This groundwork is essential before moving into more specialized areas like credit analysis, documentation specifics, or asset and portfolio management, which are addressed in other parts of the exam. That makes the history and purpose of leasing, and leasing law, the best fit for Part I.