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Hitesh Gupta
Lease - definition
Characteristics of lease
The Parties
The Asset
The Term
The Lease Rentals
Types of Lease
Financial Lease :
Operating Lease
Conveyance Type
lease
Leveraged Lease
Sale and Leaseback
Partial Pay-Out
Lease
Consumer Leasing
Ballon Lease
Close end leasing
Swap Leasing
Wrap Leasing
Import Leasing
Cross Border
leasing
International
Leasing
Types of Lease...
Financial Lease
Financial lease...
It is non-cancelable in nature.
The lessee is responsible for the
maintenance of the asset leased.
The lease generally provides for the
renewal of the lease on expiry of the
lease contract.
Variants : full payout lease , True Lease
Operating Lease
Operating Lease...
Types of Lease
Net Lease :
A variant of operating lease, where the lessor is not
concerned with the repairs and maintenance of the
leased asset.
Lessor does not provide:
- repairs, maintenance, servicing of lease property
- purchasing parts and accessories.
- loan of a replacement/substitute
- purchase of insurance for the lessee.
Types of Lease
Types of Lease.
Types of lease..
Types of Lease..
Import Leasing :
- leasing of imported capital goods.
- beneficial to the lessee, because arranging
other sources of funds takes long. Lenders do
not usually finance the import duty which forms
sizable portion of the cost.
- during which the prices of imported goods may
rise + fluctuation in exchange rates may
happen.
Types of Lease..
Regulatory framework of
leasing..
Liabilities of Lessee(Bailee)..
Reasonable Care :
The lessee to take reasonable care of the asset. If he
fails he is liable to for loss or damage to the goods
that he has caused.
If goods damaged despite of reasonable care,
(floods, riots etc), then the lessee is not responsible.
Generally lease agreements make the lessee
responsible , irrespective of lessees negligence.
Regulatory framework of
leasing..
Regulatory framework of
leasing.
Lease Agreements
Lease Agreements...
Promissory Note:
Receipt of Goods:
Collateral Security/Hypothecation
Agreement: