Financial Lease

Financial Lease means:
a lease in which the service provided by the lessor to the lessee is limited to financing the property. Lease where the lessor is considered only as a financier. All other responsibilities related to the possession of property, such as maintenance, insurance, and taxes, are borne by the lessee. The lessee is regarded as the owner of the leased assets. A financial lease is likely to be treated by the U.S. Internal Revenue Service as though it were a loan.

Cf. Operating Lease.