finance lease
finance lease see lease

Merriam-Webster’s Dictionary of Law. . 1996.

finance lease
A lease that transfers substantially all of the risks and rewards of ownership of a fixed asset (fixed assets) to the lessee. The lender (often a finance house) buys the asset and then leases it to the borrower (lessee). Under the terms of the lease the lessee pays instalments equivalent to the full value of the asset over the term of the lease plus a return on capital to the lender, instead of interest on a loan. At the end of the lease, after the final payment has been made, the asset may be transferred to the lessee.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Finance lease — is a type of lease the other being an operating lease. A finance lease (highly similar to a capital lease) effectively allows a firm to finance the purchase of an asset, even if, strictly speaking, the firm never acquires the asset. Typically, a… …   Wikipedia

  • finance lease — A term used in UCC Article 2A. A lease in which the lessor is not the supplier or manufacturer of the leased goods. In a finance lease, the lessor must not have any involvement in the selection of the leased goods and it must be serving only as a …   Financial and business terms

  • finance lease — A lease that transfers substantially all the risks and rewards of ownership of an asset to the lessee. In accounting, it is as if the lessee owned the asset in question. Under Statement of Standard Accounting Practice (SSAP) 21, Accounting for… …   Accounting dictionary

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  • finance lease — A lease in which the lessee acquires all the financial benefits and risks attaching to ownership of whatever is being leased. In accounting, it is as if the business owned the assets. Compare operating lease …   Big dictionary of business and management

  • finance lease — A British alternative term for *capital lease …   Auditor's dictionary

  • finance lease — A lease in which the lessor does not select, manufacture or supply the goods, but enters into a contract with a third party supplier to acquire goods specifically for the purpose of leasing them to the lessee. U.C.C. No. 2A 103 …   Black's law dictionary

  • finance lease — A lease in which the lessor does not select, manufacture or supply the goods, but enters into a contract with a third party supplier to acquire goods specifically for the purpose of leasing them to the lessee. U.C.C. No. 2A 103 …   Black's law dictionary

  • lease — 1 / lēs/ n [Anglo French les, from lesser to grant by lease, from Old French laisser to let go, from Latin laxare to loosen, from laxus slack] 1 a: a contract by which an owner of property conveys exclusive possession, control, use, or enjoyment… …   Law dictionary

  • finance leasing — In a finance lease the rental payments are calculated to reflect the cost of purchase of equipment and a financing/interest charge spread over the period of the lease. The lessor is the legal owner of the equipment and the lessee has possession… …   Law dictionary

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