Where the lessor obtains the funds to purchase the leased asset from a third party on a non-recourse basis.
A lease in which the lessor/owner purchases the equipment by making a specified equity investment and finances the remaining balance through a long term lender (or lenders). To be considered a leveraged lease, the financing provided by the lender must be substantial to the transaction, and be provided without recourse to the lessor.
A specific form of lease involving at least three parties: a lessor, lessee and funding source. The lessor borrows a significant portion of the equipment cost on a nonrecourse basis by assigning the future lease payment stream to the lender in return for up-front funds (the borrowing). The lessor puts up a minimal amount of its own equity funds (the difference between the equipment cost and the present value of the assigned lease payments) and is generally entitled to the full tax benefits of equipment ownership.
A form of tax efficient funding where most of the funds for project are in effect borrowed by the lessor. Leveraged leases tend to be used for large projects and are generally for longer period than ordinary leases.
A lease agreement wherein the lessor, by borrowing funds from a lending institution, finances the purchase of the asset being leased.
A specific lease involving at least three parties: a lessor, a lessee and a funding source, which allows the lessor/ owner to purchase the equipment by making a specific equity investment and to finance the remaining balance by issuing non-recourse note(s) to the lende(s).
In this type of tax lease, the lessor provides and equity portion (usually 20 to 40%) of the equipment cost and lenders provide the balance on a non-recourse debt basis. The lessor receives the tax benefits of ownership.
In this type of lease, the lessor provides an equity position (usually 20 to 40 percent) of the equipment cost and the lenders provide the balance on a nonrecourse basis. The lessor receives the tax benefits of ownership.
lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset and grants the lender lien on the assets and a pledge of the lease payments to secure the borrowing.
Transaction under which the LESSOR borrows funds to acquire property which is leased to a third party. The property and lease rentals are security for the LESSOR'S indebtedness.
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 makes payments to the lessor, who makes payments to the lender.