Financial Leasing in the Context of Uniform Commercial Code of the United States - Essay Example

Comments (1) Cite this document
Summary
Financial Leasing also called Capital Leasing is a purchasing strategy normally employed to acquire assets that allow purchasing organizations or parties to spread the cost of acquisition in the form of rental thereby expensing it at the onset. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.1% of users find it useful
Financial Leasing in the Context of Uniform Commercial Code of the United States
Read TextPreview

Extract of sample "Financial Leasing in the Context of Uniform Commercial Code of the United States"

Download file to see previous pages nless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this Article to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.2 For lessors the essential challenges in financial leasing are the length of time the financial institution’s investment is exposed which is the duration of the financial lease. Since the financial institution only holds the title of ownership of the asset in financial leases they do not have possession of the asset therefore the care, maintenance, state and condition of the asset is not within the control of the financial institution. This exposure is considered a risk by financial institution since in the event of a default or failure of the lessee to satisfy his part of the agreement the state and condition of the asset may not make it marketable or commercially viable for the financial institution or the lessor to recover his investment at the onset. Taking the above into consideration the lessor can exercise his right by virtue of Article 9 of the Uniform Commercial Code of the United States to secure his investment supported by Article 1 203 of the same Code which states that: A transaction in the form of a lease creates a security interest if the consideration that the...
For lessors the essential challenges in financial leasing are the length of time the financial institution’s investment is exposed which is the duration of the financial lease. Since the financial institution only holds the title of ownership of the asset in financial leases they do not have possession of the asset therefore the care, maintenance, state and condition of the asset is not within the control of the financial institution. This exposure is considered a risk by financial institution since in the event of a default or failure of the lessee to satisfy his part of the agreement the state and condition of the asset may not make it marketable or commercially viable for the financial institution or the lessor to recover his investment at the onset. Taking the above into consideration the lessor can exercise his right by virtue of Article 9 of the Uniform Commercial Code of the United States to secure his investment supported by Article 1 203 of the same Code which states that:
A transaction in the form of a lease creates a security interest if the consideration that the lessee is to pay the lessor for the right to possession and use of the goods is an obligation for the term of the lease and is not subject to termination by the lessee, and: the original term of the lease is equal to or greater than the remaining economic life of the goods; the lessee is bound to renew the lease for the remaining economic life of the goods or is bound to become the owner of the goods; ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Leasing in the Context of Uniform Commercial Code of the Essay”, n.d.)
Retrieved de https://studentshare.org/law/1390730-financial-leasing-in-the-context-of-uniform-commercial-code-of-the-united-states
(Financial Leasing in the Context of Uniform Commercial Code of the Essay)
https://studentshare.org/law/1390730-financial-leasing-in-the-context-of-uniform-commercial-code-of-the-united-states.
“Financial Leasing in the Context of Uniform Commercial Code of the Essay”, n.d. https://studentshare.org/law/1390730-financial-leasing-in-the-context-of-uniform-commercial-code-of-the-united-states.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
fs
fstracke added comment 9 months ago
Student rated this paper as
I never thought 4250 words essay could be written in such a free manner. I loved the idea of this essay. Will definitely use it for my own work!

CHECK THESE SAMPLES OF Financial Leasing in the Context of Uniform Commercial Code of the United States

Leasing

...?Part 1a The theoretical basis for the accounting standard that requires certain long-term leases to be capitalized by the lessee is based on the notion that a lease that transfers to the lessee the risks and benefits of using an asset should be recorded as an acquisition of a long-term asset (Schroeder, Clark & Cathey, 2005).The lessee is expected to record the lease either as an asset or liability since this is more like a long term purchase that adds value to the property of the company which should be reflected in the balance sheet of the firm. b. At the inception of the lease, Lani should account for the lease as an asset which is determined by the...
5 Pages(1250 words)Essay

The uniform Commercial Code

...?Introduction Sale of goods is a transaction in which a party transfers or agrees to transfer the property in goods to another party for a money consideration1. These kinds of transactions are meant to benefit both parties involved. However, at times they are not as smooth as they ought to be, as problems occur leading to losses. Because of these problems, and to ensure orderly commerce, legislators and courts have created laws governing the sale of goods. UCC (Uniform Commercial Code), and How It Governs Sale of Goods The UCC (Uniform Commercial Code) is the most comprehensive set of laws governing the sale of goods. The UCC is used by...
4 Pages(1000 words)Essay

Uniform Commercial Code: Article 2 Sales Transactions over the Internet

...? Uniform Commercial Article 2 Sales Transactions over the Internet Uniform Commercial Code: Article 2 Sales Transactions over the Internet Introduction Uniform Commercial Code generally refers to the main set of regulations and laws that were primarily established to harmonize and standardize sales and commercial transactions in 50 States of the United States. The primary reason for standardizing the State laws regarding the conduct of sale and transactions is that sometimes transactions and sales tend to extend beyond...
8 Pages(2000 words)Term Paper

Comparison of The Uniform Commercial Code and UCITA

...on the subject of Bankruptcies throughout the United States". Based on the information presented above, what do you see as the major differences between Article 2 of the UniformCommercialCode and UCITA The National Conference of commissioners on uniformstate laws (NCCUSL) on July 29 adopted Uniform Computer Information Transactions Act (UCITA) after revising the proposals again and again. The (UCC) UniformCommercial Code is intended to promote uniformity in the ...
2 Pages(500 words)Essay

Uniform Commercial Code

...Order No: 185537 Uniform Commercial Article 2 Proposal On The Remedies under the Uniform Commercial A Critical Analysis of the Status of Sellers and Buyers Prepared by DR. ZULFIQUAR AHMED ID: 10131 Order No: 185537 09 October 2007 The Remedies under the Uniform Commercial Code: A Critical Analysis of the Status of Sellers and Buyers Introduction In the United States, the remedies of buyers and sellers of goods are governed by the Article 2 of Uniform Commercial Code (UCC) as it has been adopted with variations from...
6 Pages(1500 words)Essay

United States Uniform Personnel Identification System

...of the System……………………………………………………20 XI. An Independent Department within Homeland Security…………………….22 i. A Stand Alone Dedicated Department……………………………….22 ii. Communication and Ownership System..……………………………25 iii. Database Update System…………………………………………......26 iv. Proper Monitoring Programs………..………………………………..27 UNITED STATES UNIFORM PERSONNEL IDENTIFICATION SYSTEM HEADING PAGE XII. Recommendation And Managerial Implication ……...………………………28 XIII. Reflection……………………………………………………………………..30 XIV. Conclusion……………………………………………………………….........32 XV. References…………………………………………………………………......37 I. Abstract: The major study of this thesis paper is to guarantee an...
35 Pages(8750 words)Thesis

Law of sales and the uniform commercial code(SLP)

...Introduction The UCC (Uniform Commercial is one of laws governing the sale of goods in most all the s in the USA apart from Louisiana. Article 2 of the statute only governs a contract for the sale of goods and the goods must be tangible and movable. Other types of transactions are governed by the different Article in the UCC. Laws on the sale of real estate and the sale of services are different from laws on the sale of goods, and they are excluded from Article 2. A service contract may be covered by the provisions in Article 2 insofar as it involves the transfer of goods, and courts may use Article 2 as a reference for interpreting laws on the sale of services. The Blank Contract The blank contract used...
2 Pages(500 words)Essay

The Uniform Commercial Code (UCC)

...a. Under UCC 2-302, who has the best chance of getting out of the contract due to unconscionability? Unconscionability exists in a contract where there is no equality in the bargaining power of the parties in a contract. Under UCC 2-302 unconscionability is only applicable to the sale of goods when the contract is grossly unfair (Class notes, chapter 7). Under UCC 2-302, the person who has a better chance of getting out of a contract due to unconscionability is the person to whom goods were sold to in an unfair contract or way. b. The symbol for justice features a woman wearing a blindfold illustrating that the law should be applied the same way regardless of who the parties are. Does the UCC rule seem to contradict... Under UCC 2-302, who...
1 Pages(250 words)Admission/Application Essay

Uniform Commercial Code, section 1-302

...First Number Uniform Commercial section 302 INTRODUCTION The Uniform Commercial (UCC) is a particular set of law in the United States (US) that has been formed by the government of the nation in order to govern the commercial business domain of the country. It has been learnt that commercial business sector has changes significantly over the years and its contribution has been quite high with regard to strengthening the economy of the US. In this context, it has been noted the commercial business domain in the US has been subjected to stern laws and regulations, which has further hindered the effectiveness of the sector to a major extent (DeYoung 15-28). This is because of the aspect that owing to the prevalence of stern laws... and...
23 Pages(5750 words)Research Paper

Uniform commercial code

...Uniform Commercial Call a lawyer immediately and inform him of the entire situation. It would be advisable to communicate with the involved party so as to get more information from them. They should give you all the details of what happened, as well as confirm what he was doing when the accident actually happened. You need to confirm whether he was picking flowers at the time of the accident, and it would be advisable to visit the scene of the accident as well as view both of the affected vehicles. 2. Call the B&B cleaning and laundry unit and ask them while their supplies are all over the compound. It would be advisable to communicate directly with them. If they refuse to cooperate and...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Financial Leasing in the Context of Uniform Commercial Code of the United States for FREE!

Contact Us