Direct Lease

In direct lease. the lessee, and the owner of the equipment are two different entities a direct lease can he of two types bipartite lease and tripartite lease.

Bipartite Lease

There are two panics in this lease transaction, namely the equipment supplier cum lessor and (ii) the lessee. Such a lease is typically structured as an operating lease with inbuilt facilities like up gradation of the equipment , addition to the original equipment configuration and so on. The lessor maintains the asset and, if necessary replaces it with a similar equipment that is in working condition (Swap lease).

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