A novated lease is a three-way agreement between STA Travel, the employee an the financier. There are twoNovated Lease • September 2nd, 2014
separate parts to a novated lease; the primary lease contract and the deed of novation. The primary lease is a contract between the employee and the financier. The novation deed is a separate agreement between all three parties (employee, employer and the financier) that sits behind the primary lease. The deed of novation transfers obligations of the lease (with exception of the residual payout) from the employee to STA Travel for the duration of the employment period or until novation deeds are cancelled or until maturity of the lease period, whichever is first. STA Travel reserves the rights to cancel novation deeds at any time at its own discretion.
