TERMIUM Plus^®

Record 1,  Textual support,  English

Record number: 1, Textual support number: 1 OBS

Source: Income Tax Act, s. 56(10); 209.  2, record 1, English, - head%20lease

Record 1,  Textual support,  French

Record number: 1, Textual support number: 1 OBS

Source : Loi de l’impôt sur le revenu, art. 56(10); 209.  2, record 1, French, - bail%20initial

Record 1,  Textual support,  Spanish

Record 2,  Textual support,  English

Record number: 2, Textual support number: 1 CONT

A lessor leases an asset (for example, equipment) to a lessee and obtains nonrecourse financing from a financial institution using the lease receivable and the asset as collateral. Concurrently, or at a later date, the lessor sells the asset subject to the lease and the nonrecourse financing to a third party and leases the asset back. The lessor remains the principal lessor with the equipment user. In exchange for the asset, the lessor receives cash and a note receivable and may also retain an interest in the residual value of the leased asset and remarketing rights. These transactions are commonly referred to as "wrap lease transactions."  2, record 2, English, - wrap%20lease%20transaction

Record 2,  Textual support,  French

Record number: 2, Textual support number: 1 DEF

Opération par laquelle une entité acquiert un bien, le loue à un locataire, obtient un prêt sans autre garantie que le bien loué et les loyers futurs [...], cède à un tiers le bien loué ainsi que l'emprunt, et reprend le bien à bail tout en respectant le bail initial et demeurant en substance le premier bailleur en vertu du bail initial.  1, record 2, French, - bail%2Dcession%2Dbail

Record 2,  Textual support,  Spanish