Lessor (leasing)

Lessor is a participant of the leasing contract, who takes possession of the property and provides it as a leasing subject to the lessee for temporary possession.

Commercial banks, credit non-bank organizations, leasing companies often act as a lessor.

A lessor can be both legal entity and individual. Nevertheless, the term “leasing company” sometimes is used as a synonym to the term “lessor”.

The Seller of the property and the lessor can be one and the same person.

The process of interaction of the lessor with other participants of the Leasing Contract is as follows:

For the whole time period of the Leasing Contract the property is in the ownership of the lessor.

In case of failure of reimbursements of lease payments under the schedule specified in the contract the lessor has the right to exempt the property from the Lessee. In case of bankruptcy of the Lessee the lessor has the priority right for payments.

If the lessor contrary to the contract has interfered with the choice of the seller or leasing subject, he bears the responsibility for non-delivery of the equipment, personal injury of citizens while using the leasing subject, damage which is caused to the property of the Lessee and the third Parties. There are however exceptions from this norm.

In case of implementation of a high-priced project the lessor may involve into the transaction additional sources of financial assets (through banks, insurance companies, investment funds, etc.).

Official leasing provider (dealer) is a special type of lessor. This is the official supplier of specialized machinery, transport and equipment directly to the final consumer or through a leasing company. Official leasing operator cooperates with manufacturers (subsidiary offices) of prime machinery under the operator (dealer) agreement.

For the leasing company the official leasing operator acts as:

For consumers, the official leasing operator acts as:

Rights and obligations of the lessor in the Russian Federation are regulated by the contract, under the Federal Law “On financial rent (leasing)”, the Tax Code of the Russian Federation, the Civil Code, and others, in Ukraine – by the Law “On Financial Leasing” and many others, in Uzbekistan – by Chapter 34 of the Civil Code of Uzbekistan and others. International leasing contracts are regulated under the UNIDROIT Convention on International Financial Leasing.

...
Wikipedia