Over the past several years, courts faced with the issue of whether a lease is a “true lease” or a “disguised security interest” have been making it more and more difficult for lessors to have their leases confirmed as true leases.
True Lease v. Disguised Security Interest: A New Dilemma
Over the past several years, courts faced with the issue of whether a lease is a "true lease" or a "disguised security interest" have been making it more and more difficult for lessors to have their leases confirmed as true leases. Through a process of focusing on economic reality instead of the intent of the parties and increasing the amount of residual value required at the end of a lease term, courts are creating a dilemma for the leasing industry. Certain segments of the equipment leasing industry are more severely effected by these changes than others.
By
Beth Stern FlemingThis premium content is locked for LawJournalNewsletters subscribers only
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