Industry terms and definitions

Leasing — a special type of financial lease in which one party (the lessor), on behalf of the second party (the lessee), acquires into ownership from a third party (the seller) the property specified in the leasing agreement (the leased object) and provides it to the lessee for temporary possession and use for a fee for a period of more than twelve months under the terms established by this agreement.

Leasing objects – any non-consumable goods used for entrepreneurial activity, including enterprises, property complexes, buildings, structures, equipment, vehicles, as well as other movable and immovable property.

Leasing subjects – lessor, lessee, and seller.

Subleasing – the lessee, while remaining liable to the lessor under the lease agreement, has the right, with the written consent of the lessor, to transfer the leased asset to a third party for temporary possession and use under a sublease. The term of the sublease agreement cannot exceed the term of the primary lease agreement.

Ownership of the leased asset – ownership of the leased asset belongs to the lessor until it is purchased by the lessee in full.

Insurance of the leased asset – insurance of the leased asset against any potential risks of loss, theft, damage, and premature wear is carried out by agreement of the parties. In the absence of such an agreement, the lessee is responsible for insuring the leased asset.