Residual value guarantees and GPU exit risk
What a value floor can cover, and the recovery risks that can remain.
A residual value guarantee supports a defined asset value under specified conditions. It does not automatically guarantee loan repayment, maintain the asset's market price or pay every cost needed to recover and sell the equipment.
- 01Gross sale scenario
- 02Recovery costs
- 03Eligible support claim
- 04Net lender recovery
Name the asset and value basis
Identify serialised equipment, configuration, age, condition, location and the valuation date. Determine whether the protected amount is gross resale value, a net amount or another agreed calculation. Keep an insured value, accounting value and lender recovery estimate in separate fields; they need not move together.
Read the trigger as a cash event
A payment may depend on a disposal, approved sale process, eligible loss, maintenance history or timely claim. Determine whether the lender is a beneficiary or loss payee and whether claims survive transfers. The existence of a policy or guarantee is not evidence that a particular asset and loss are covered.
Build a recovery bridge
Begin with a clearly labelled gross-value scenario, then deduct de-installation, testing, sanitisation, transport, storage, selling costs and priority claims as applicable. Add the time required to collect support. Compare the resulting cash with debt and preservation costs. Avoid counting guaranteed proceeds twice alongside the same assumed sale proceeds.
Keep the evidence boundary visible
The register does not establish a broadly comparable set of issued GPU value guarantees with complete policy terms. This guide is therefore a diligence framework, not a claim about prevailing cover or pricing. The original recovery model in the Lending Handbook lets readers vary assumptions without presenting them as market forecasts.
Questions to take to the documents
- Which assets and value calculation are actually protected?
- What sale, condition and claims requirements must be satisfied?
- Does the payment arrive before the loan requires repayment?
For in-house counsel
Take it to the documents
The filed wording behind this piece, for the lender’s or the borrower’s side. Previews are open; the full text is free with InfraCompute Weekly.
- Contract libraryGPU contracts, leases, power, equity and JVs, quoted from filed contracts.
- Financing clause libraryCash traps, coverage ratios, cures and step-in, from the filed deals.
- Issues list builderBuild an issues list from the lender’s or the borrower’s side.
- The legal desk for in-house counselEverything for counsel in one place.
Evidence boundary
This is an explanatory framework. It makes no claim that a named financing contains these terms. Use the research methodology and the related handbook to examine actual source evidence.
