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Graduated Lease

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Graduated Lease

A lease (usually long-term) that is periodically adjusted to reflect the appraised value of the asset being leased.

Notes:

For example, if under a graduated lease a company was leasing land for 25 years, every 5 years the lease payments might be adjusted to reflect the current market value of the land.

Graduated lease

A type of long-term lease whose payments are variable rather than fixed, and depend upon a benchmark rate, such as changes in the consumer price index.

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