Operating Lease


Operating Lease (also referred to as Fair Market Value (“FMV’) Lease):


*  The FF&E and equipment items (the Assets) are leased to the Lessee (also referred to as the counterparty) subject to a monthly (or quarterly)  periodic rental payment.

*  At the end of the Operating Lease the title to the Assets does not pass to the counterparty, but remains with the Financier, however the counterparty has several options in respect to the Assets:

Return the Assets to the Financier

·       Renewal / extension of the lease term

·       Purchase the Assets at FMV wherein title passes to the counterparty

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