Finance Leases
Finance leases are a type of lease agreement in which the lessee (the user of the asset) has the option to purchase the asset at the end of the lease term, or return it to the lessor (the owner of the asset). In finance leases, the lessee is responsible for the maintenance and insurance of the asset, and the lessor retains ownership of the asset throughout the lease term. Finance leases are commonly used in the aviation industry to finance the acquisition of aircraft, engines, and other aviation assets.
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