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Leveraged lease

• A lease under which the lessor acts as an equity participant, supplying only about 20 percent of the cost of the asset, while a lender supplies the balance.

• The lessor provides only a minor portion of the cost of the leased equipment, borrowing the rest from another lender.

• A lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset and grants the lender a lien on the assets and a pledge of the lease payments to secure the borrowing.

 
 Embedded terms in definition
 Assets
Asset
Equity
Grants
Lease
Lessor
Lien
Purchase
 
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