conditional sales contract

Conditional Sales Contracts

A sale of an asset in which the buyer assumes possession and may have use of the asset, but the seller retains title until the buyer pays its full price and may repossess the asset if the buyer does not. In exchange for the right to use the asset, the buyer makes payments over an agreed-upon period of time, whether months or years. This arrangement is most common with heavy equipment, machinery, and real estate. See also: Beneficial ownership, Lease.

conditional sales contract

(1) A sales contract in which the buyer is given possession and use of the item sold,but the seller retains legal title until all payments have been made in full.Equipment leases for a term of years,at the end of which the buyer pays $1 to buy the property, have been characterized by the IRS as conditional sales contracts rather than true leases.As a result,the taxpayer is not allowed to deduct the full lease payments each year,but only an amount equal to the depreciation available if the property had been purchased for cash, plus an allocation for interest. This amount is usually less than the annual lease payment. (2) If pertaining to real estate, commonly called a bond for title,land sale contract, or contract for deed.

References in periodicals archive ?
The statute also says the definition "includes a security agreement, chattel mortgage, conditional sales contract, or other similar instrument.
For example, pursuant to a conditional sales contract the recipient may receive actual or constructive delivery of the TPP outside of Canada, even though the transfer of title only occurs at a much later date in Canada, after another condition under the contract is fulfilled.
Offered in partnership with GE Capital Vendor Financial Services, a global provider of financing solutions to manufacturers, dealers and end-users, Toro Financing provides flexible financial solutions, leases and conditional sales contracts.
CoreISSUE is designed to handle the complex needs of modern credit card issuers and handles all types of finance programs from simple "net 10" terms, conditional sales contracts, nominal option leases and all revolving credit programs.
Through its international network of 34 offices, Newcourt Credit Group specializes in financing a broad range of equipment and capital assets through secured loans, conditional sales contracts and leases.
The Company has executed conditional sales contracts for sale of the properties it received in connection with two of these credit relationships.
Green Tree is a specialty finance company, originating and purchasing conditional sales contracts primarily to finance the purchase of manufactured homes.
Newcourt originates the financing of a broad range of equipment and capital assets by way of secured loans, conditional sales contracts and financial leases.
Through its North American offices, Newcourt specializes in financing a broad range of equipment and capital assets through secured loans, conditional sales contracts and leases.
Through its North American and European network of 27 offices, the Company specializes in financing a broad range of equipment and capital assets through secured loans, conditional sales contracts and leases.
Green Tree is a specialty finance company, originating conditional sales contracts primarily to finance the purchase of manufactured homes.
is an originator and servicer of conditional sales contracts for manufactured homes, home improvements, and consumer and commercial products.

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