BU231 Chapter Notes - Chapter 17: Pawnbroker, Bailment
Document Summary
Lease an arrangement where the owner of property allows another person to have possession and use of the property for a stipulated period in return for the payment of rent. Lessor the owner of the leased property. Lessee the person who takes possession of the leased property. Hire-purchase an agreement to lease an item of property with an option for the lessee to purchase it at the end of the stipulated term. Operating lease a lease under which there is no intention to transfer ownership. Purchase lease a lease whereby ownership is intended to change hands at the end of the lease term. Security lease a purchase lease in which the lessor provides the credit. Finance lease an arrangement where a third person provides credit financing, becomes the owner of the property, and leases it to the lessee. Sale-and-leaseback a transaction in which the owner of property sells it and immediately leases it back from the new owner.
