4 ms·
The bonds are great for investors because most of the the terms in there are designed to screw over the customer. These bonds are securitizations of SolarCity l
by nissimk 10y ago
The bonds are great for investors because most of the the terms in there are designed to screw over the customer. These bonds are securitizations of SolarCity leased solar panel rooftop systems. The salesmane I met with in NY told me that was the only way I could get SolarCity panels installed at my home is if I signed the solar lease agreement (which would then be securitized into these bonds).
The lease says that if you default on the lease, by missing a single payment, SolarCity has the right to take back the panels, but you are still liable for the remainder of the lease payments even though you no longer have the panels.
- jacquesm 10y agoI'd be surprised if that held up in court.
- toomuchtodo 10y agoHolds up just fine if you default on a vehicle lease (repossession, you're on the hook for the remaining balance). Why would solar panels be different? Because its on your roof instead of in your garage?
- maxerickson 10y agoPage 9 if anyone is interested: https://www.solarcity.com/sites/default/files/sc-contract-resi-lease-2.9.pdf https://www.solarcity.com/sites/default/files/sc-contract-re...
- droithomme 10y agoHm, in section 16 you also have to pay them for all costs, and you still owe for the rest of the lease, plus compensation for loss of their investment tax credits. Default is also triggered if you sell the house, the person buying it assumes the lease, but later has his credit rating drop.
- stardek 10y agoDoes anyone know if there are cases of that being enforced? It sounds to me like the sort of thing that is thrown in by some overzealous lawyers just because they can. Still, definitely not a good thing to sign though.