REQUIREMENTS FOR LEASE AGREEMENT

FINANCE LEASE

i. Statement to the effect that the lease is Finance  Lease

ii. Description of the asset to be leased

iii. Total rental or instalmental lease rental payable by the lessee

iv. The date which rental is payable

v. The estimated price of the equipment

vi. Statement as to the knowledge of the supplier of the asset that it is for a lease transaction.

vii. A clause affirming the title of the lessors

viii. On termination by expiry of time, unless a renewal is granted or the lessor agrees to sell, the lessee shall return the asset.

ix. Acknowledgement from the lessee that the lease is a full pay out, non cancellable agreement.

x. A statement as to whether or not the lessee selected the equipment or supplier/manufacturer with or without relying on the skill and judgment of the lessor

 

OPERATING LEASE

i. Statement to the effect that the lease is Operating Lease

ii.Description of the asset to be leased

iii. Total rental or instalmental lease rental payable by the lessee

iv. The date which rental is payable

v. A clause affirming the title of the lessors

vi. On termination by expiry of time, unless a renewal is granted or the lessor agrees to sell, the lessee shall return the asset.