If you are the user or the supplier, and you are not sure how to initiate the DRV settlement for a leasing deal, you’ve found the right article.
According to the xChange Standard Container Leasing Agreement, our sub-clause 16 (a) through (f)
16. Actual Loss, Constructive Total Loss and Non-Return of Equipment - Claim for DRV and Ownership Transfer
(a) The User shall be liable to The Supplier for the actual or constructive total loss of any Equipment rented from The Supplier under this agreement during the period in which The Equipment is rented by The User. The User shall immediately notify The Supplier in writing on The Leasing Platform of any actual or constructive total loss of any Equipment.
(b) If pieces of Equipment are not returned to a depot or terminal specified by The Supplier within 365 (three-hundred-sixty-five) days after the pick-up of the piece of Equipment The Supplier may claim payment of the DRV of The Equipment from The User.
(c) In case of a notice of actual or constructive total loss of Equipment by The User according to Sub-Section 16 (a) or a DRV claim by The Supplier according to Sub-Section 16 (b), The User shall be promptly invoiced and pay to The Supplier the DRV of the affected Equipment.
(d) Ownership of The Equipment passes to The User after payment of the amount stated on the invoice issued according to Sub-Section 16(c) has been received by The Supplier. The Supplier shall provide The User with a proof of ownership certificate for the transferred piece of Equipment.
(e) The obligation of The User to pay rent to The Supplier ceases after ownership of the Equipment has been transferred according to Sub-clause 16 (d)
(f) Should The User later determine that Equipment previously declared lost has been recovered, The Supplier will, at the request of the User, reimburse any previously paid replacement value (e.g. DRV) less any rent accrued from the date the Equipment was declared lost if the recovery date is within 60 (sixty) days of the total loss declaration but not later than 365 (three-hundred-sixty-five) days after the specific piece of Equipment has been picked-up.