Direct Finance Lease Sample Clauses
A Direct Finance Lease is a contractual arrangement in which the lessor provides financing for the lessee to use a specific asset, with the lease structured so that the lessor recovers most or all of the investment through lease payments. Typically, the lessee selects the asset and supplier, and the lessor purchases the asset to lease it to the lessee for a fixed term, often with an option to purchase at the end. This clause ensures that the lessor's financial interests are protected while enabling the lessee to use the asset without upfront capital expenditure, effectively allocating the risks and benefits of ownership between the parties.
Direct Finance Lease. A lease classified as a direct finance or direct financing lease in accordance with GAAP.
Direct Finance Lease. A Lease pursuant to which the Borrower or the Guarantor leases Containers to a lessee and (a) the terms of such lease provide that title to such Containers will pass to such lessee at the end of the lease term automatically or at the option of the lessee for no additional consideration or for consideration so nominal that the lessee would be economically compelled to exercise such option or (b) the proceeds of such lease are booked on the applicable Borrower’s or the Guarantor’s financial statements (in accordance with GAAP) as “Income from Direct Finance Leases.”
Direct Finance Lease. A Lease pursuant to which any Person leases Containers (other than tank, open top and flat rack containers and generator sets) to a lessee and (a) the terms of such lease provide that title to such Containers will pass to such lessee at the end of the lease term automatically or at the option of the lessee for no additional consideration or for consideration so nominal that the lessee would be economically compelled to exercise such option and (b) the interest component of the proceeds of such lease are booked on such Person’s financial statements as “Income from Direct Finance Leases” in accordance with GAAP.