Financing lease related legal issues encountered in the actual work of Bo Lord, summarized here, may be beneficial for some practitioners:

Q: in the leasing of heavy machinery program, lease to lease the machine only ownership registration to operate the road, in fact the lease rental didn't enjoy the ownership of the lease, but if not ownership registration will not lease the machinery, ask the law has no solution?

Answer: if the Finance Leasing Company want to push the implementation of the contract, to do the following work:

1, in the financing lease contract clearly ownership in the lease period belongs to Finance Leasing Company;

2, at the same time the lease for the record in the vehicle for the equipment to the mortgage mortgage Finance Leasing Company. Objective: to prevent the equipment leasing privately resold or private mortgage.

3, to Finance Leasing Company and leasing party shall sign a mortgage contract, clearly stated in the mortgage contract: the device belongs to Finance Leasing Company on the lease before the expiration of lease ownership registration, only in order to meet the requirements of relevant lease; in order to prevent the risk of the mortgage to the Finance Leasing Company; lease shall not be mortgaged to any third device people, otherwise it will assume that the value of the equipment ___% default payment. Explanation: not because of the notary office notary procedures, is very difficult for the matter legalization, or in accordance with the loan contract notarized does not conform to the interests of Finance Companies.

Q: a foreign Finance Leasing Company intends to help the Associate Company building office building, whether can be in after the completion of the project's real property after sale leaseback means? If not, how can legally realize the purpose of financing?

Answer: after the completion of the project of the real property after sale leaseback means exists the following legal risk:

1, property financing lease is beyond the scope of business behavior, it may be recognized as invalid contract.

"Foreign investment in the leasing industry management approach" Regulations on foreign investment Finance Leasing Company, the financing lease business does not include real estate financing lease. Therefore, the solution to real property leasing, when disputes arise, possibly by the court as beyond the scope of. According to the CBRC promulgated the "measures for the administration of Finance Leasing Company", only the Finance Leasing Company has the right to engage in property leasing business, the financing lease contract may be beyond the scope of business in violation of the provisions of national franchise by the court recognized as invalid.

2, beyond the business scope may be subject to administrative punishment.

According to the provisions of the regulations on company registration administration "" seventy-third: "the company changes its registered items, not in accordance with the regulations for the change of registration, the company registration authority shall order the deadline for registration; if it fails to register, ranging from 10000 yuan to 100000 yuan shall be imposed. Among them, the change of business scope relates to the provisions of the laws, administrative regulations or decisions of the State Council shall be subject to the approval of the project without approval, to engage in the relevant business activities, if the circumstances are serious, the business license shall be revoked." Therefore, even if the dispute has not occurred during the performance of a financial leasing contract, the Finance Leasing Company may also be subject to administrative punishment from the competent authority.

3, after the completion of the project, the Finance Leasing Company as the lessor is not the legal risk of the property right registration.

According to the "property law", the establishment of real property, alteration, transfer and elimination, without registration, no effect. Therefore, if the project is completed, the Finance Leasing Company, not for property registration, as it has not obtained the lease of real property ownership, not financing lease ownership could be identified as business lending behavior in the judicial practice, the Finance Leasing Company for the acquisition as lessors rent will not be protected by law. Of course, if the parties do not dispute in the performance of the contract process, according to the principle of no trial without complaint, the court will not take the initiative to intervene.

Take the recommendations of the way:

Entrusted loan + with the project construction equipment required for leasing and existing equipment after sale leaseback way

1, entrust loan

The Finance Leasing Company commissioned by bank loans to the Associate Company loans required part of funds, interest charges. The Finance Leasing Company needs to pay bank charges.

2, the project construction required after sale leaseback equipment

Another part of the funds needed in the following two ways: the financing Associate Company projects need to buy equipment purchased by the Finance Leasing Company, then rented to sell to the Associate Company; the Associate Company will all of its own equipment sold to the Finance Leasing Company, the Finance Leasing Company and then leased back to the Associate Company, the Associate Company retained when the lease expires purchase the equipment.