Structured Finance,' the presence of legal opinions (to be provided) that address the treatment of the operating lease as a true lease
, the non-consolidation of the special-purpose vehicles with Avis Budget Group, Inc.
"Consistent with the views of Windstream's counsel and advisors when the lease was established, we believe that the lease is a true lease
and will be respected and enforced as such, and we will vigorously contest any argument to the contrary," Gunderman said.
(35) This clause refers to a lease that does not secure payment or performance of an obligation, otherwise known as a true lease
. Nevertheless, the Act allows a lessor under a true lease
to establish its priority in the leased goods by complying with the attachment and perfection requirements.
In general, the REIT provisions treat the income received by a REIT from making available parking spaces in a parking garage to tenants or third parties as income from the provision of a "service," unless the parking garage is master-leased to a third party under a lease agreement that is respected as a true lease
for federal tax purposes.
Mazuma Capital has completed a USD36 million true lease
for a global medical diagnostics servicing firm, the company said.
An operating lease, or true lease
, may allow the lessee to purchase the asset at the end of the lease term, but does not require it.
Conversely, if a lease transaction is classified as a tax-oriented true lease
: (i) the lessor claims and retains tax benefits resulting from equipment ownership--depreciation cost deduction; (ii) the lessor transfers to the lessee a portion of those benefits in the form of reduced lease payments--via interest rate (or credit spread) reduction; (iii) the lessee deducts the full lease payment as a cost; (iv) the lessor owns the leased equipment at the end of the lease term--the lease contract has no purchase option or a purchase option based on the market value.
The Federal Circuit held that because there was undisputed evidence that the Dutch utility was reasonably likely to exercise the purchase option, the LILO transaction did not constitute a true lease
, and Con Ed's rent deductions from the transaction should be disallowed.
Capital and "true lease
" arrangements based on clients' tax priorities.
. This Note presents a rudimentary formal model to show that
The origins of some of its traditional characters can be traced back to the Italian commedia del'arte and it was the Victorians who really fell in love with the style and gave it a true lease
For tax purposes, a lease is either considered a capital lease--classified as a "conditional purchase" or "Conditional sale"--or an operating lease--classified as a "true lease
." The nature of the lease is determined by the facts and circumstances surrounding the lease agreement.