Part III of the CLFP exam covers which topics?

• A. Leasing Law
• B. Credit and Documentation
• C. Pricing and Taxation
• D. Funding Operations

Answer: (B)

Underwriting and documentation are the focus here. This part tests your ability to evaluate credit risk, analyze lessee financial statements, determine appropriate terms, and prepare the lease documentation that protects the lender’s rights. The emphasis on credit analysis and the associated legal documents—such as the lease agreement, security interests, perfection filings, and covenants—explains why this option best fits Part III.

Leasing law covers the broader regulatory framework governing leases, pricing and taxation deal with the financial terms and tax implications of the deal, and funding operations focus on obtaining and managing the capital needed to fund transactions. In practice, Part III centers on assessing the borrower’s ability to repay and ensuring the transaction is documented in a way that secures and enforces the lender’s interests.