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 conduit for the lessee to obtain the goods. Finally, the lessor must acquire the goods or the right to possess the goods in connection with the lease. American Banker Glossary
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An agreement where the leaser receives lease payments to cover its ownership costs. The lessee is responsible for maintenance, insurance, and taxes. Some finance leases are conditional sales or hire purchase agreements. Bloomberg Financial Dictionary
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finance lease UK US noun [C] (also asset finance [U]) FINANCE
► a financial agreement in which a finance company pays for equipment that a customer wants, such as a car or computer, and the customer pays them to use it. Depending on the agreement, the customer may own the goods or buy them for a reduced price at the end of the lease
Financial and business terms. 2012.