Operating lease

Definition: 

Operating lease is a lease other than a financial lease, signed for a period that does not last for the entire or a substantial part of the useful life of the leased asset.

The lessor covers all expenses related to the maintenance of the leased asset and assumes all risks and rewards associated with the ownership right and upon expiry of the contract will return the property to the leasing company. Upon request, lessee can also buy the property out at the end of the lease period at a previously agreed price.

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