(a) To what extent is this type of business 'finance' technique practised in this economy?

This technique is used primarily for large piece of equipment such as building cranes and earthmovers. The equipment is leased for an agreed upon period of time. The documents usually provide for a fairly large payment for depreciation.

(b) If default is made what are the rights of the owner of the property to recover the leased property?

The owner has a right to recover the leased property. But in practice, given the on site problems noted in Section DD(d) below (EG, right of access to the place where the equipment is situated), a trespass might well occur in attempting to reclaims the property.

(c) Does the exercise of these rights require court process?

Although the lease documentation does not require court involvement, to avoid the problems noted in Section DD(b) immediately above, the owner of the property will normally go to court.

(d) How effective in actual practice is the process of recovery (list any relevant impediments, such as the right of access to the place where the equipment is situated; the right to physically take the equipment away from the place; and so forth)?

Once court approval is obtained the process is relatively straightforward.

(e) What effect does the commencement of insolvency proceedings in respect of the corporate debtor have on the recovery of leased property?

Theoretically, the commencement of insolvency proceedings should not adversely affect the recovery. See Section C5 above.

(f) Is it usual for an equipment lease to be supported by guarantees (sureties) for payment of lease charges; default penalties; and so forth?

Yes, it would be usual for an equipment lease to be supported by guarantees (typically from third party non-developer) to cover lease charges, default penalties, etc.