Article 2. The concept of leasing

Leasing — a special form of financial lease, at which one party (the lessor) on behalf of another party (the lessee) acquires from a third party (seller) the property (an object of leasing) indicated by the leasing contract and provides it to the lessee for a fee on certain such contract terms in possession and use for a period exceeding twelve months. In this case, the leasing contract must meet one of the following requirements:

at the end of the term of the contract of leasing the object of leasing passes into the property of the lessee;

the term of the leasing contract exceeds 80 percent of the service life of the leasing object or the residual value of the leasing object at the end of the leasing contract is less than 20 percent of its initial value;

at the end of the term of the leasing contract, the lessee has the right of redemption of the object of leasing at the price lower than the market value of the object of leasing on the date of implementation of this law;

The current discounted value of the leasing payments over the period of the leasing contract exceeds ninety per cent of the current value of the object of leasing at the time of transmission in the lease. The present discounted value is determined in accordance with the legislation on accounting.

Leasing is carried out under a tripartite (seller — lessor — lessee) or bilateral (lessor — lessee) leasing contract.

When concluding a bilateral leasing contract between the lessor and the seller an additional contract is concluded on the sale of the leasing object.