A leveraged lease or leased lender is a lease in which the lessor puts up some of the money required to purchase the asset and borrows the rest from a lender. The lender is given a senior secured interest on the asset and an assignment of the lease and lease payments. The lessee typically makes payments directly to the lender as the lease payments are assigned to the lender.
The term may also refer to a lease agreement wherein the lessor, by borrowing funds from a lending institution, finances the purchase of the asset being leased.
The lessor pays the lending institution back by way of the lease payments received from the lessee. Under the loan agreement, the lender has rights to the asset and the lease payments if the lessor defaults.
In this type of lease, the lessor provides an equity portion (often 20% to 50%) of the equipment cost and lenders provide the balance on a nonrecourse debt basis. The lessor receives the tax benefits of ownership.
January 01, 1970
leveraged, lease, this, article, does, cite, sources, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, december, 2009, learn, when, rem. This article does not cite any sources Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Leveraged lease news newspapers books scholar JSTOR December 2009 Learn how and when to remove this message A leveraged lease or leased lender is a lease in which the lessor puts up some of the money required to purchase the asset and borrows the rest from a lender The lender is given a senior secured interest on the asset and an assignment of the lease and lease payments The lessee typically makes payments directly to the lender as the lease payments are assigned to the lender The term may also refer to a lease agreement wherein the lessor by borrowing funds from a lending institution finances the purchase of the asset being leased The lessor pays the lending institution back by way of the lease payments received from the lessee Under the loan agreement the lender has rights to the asset and the lease payments if the lessor defaults In this type of lease the lessor provides an equity portion often 20 to 50 of the equipment cost and lenders provide the balance on a nonrecourse debt basis The lessor receives the tax benefits of ownership Retrieved from https en wikipedia org w index php title Leveraged lease amp oldid 1102698597, wikipedia, wiki, book, books, library,
