Article 2. Basic concepts of the Financial Leasing Act

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The following basic concepts are used in this Law:

financial leasing (hereinafter referred to as leasing) is a type of investment activity in which the lessor undertakes to transfer the leased object acquired from the seller and stipulated by the lease agreement to the lessee for a certain fee and under certain conditions for temporary possession and use for a period of more than one year. In this case, the transfer of the leased item under the lease agreement must meet one or more of the following conditions::

1) the transfer of the leased object to the ownership of the lessee and (or) the granting of the right to the lessee to purchase the leased object at a fixed price are determined by the lease agreement;

2) the lease term exceeds 75 percent of the useful life of the leased item;

3) the current (discounted) value of lease payments for the entire lease term exceeds 90 percent of the value of the leased item being transferred;

A lessor is a participant in a leasing transaction who, at the expense of borrowed and (or) his own money, acquires ownership of the leased object and transfers it to the lessee under the terms of the lease agreement. Within the framework of one leasing transaction, the lessor is not entitled to simultaneously act as another participant in it.;

The lessee is a participant in the leasing transaction who accepts the leased item under the terms of the lease agreement.;

A leasing transaction is a set of coordinated actions of leasing participants aimed at establishing, changing or terminating civil rights and obligations.;

leasing activity - the activity of the lessor in fulfilling the terms of the lease agreement;

non-consumable items are movable and immovable property that wears out when used, but does not lose its natural properties in the process of its use.;

A seller is a participant in a leasing transaction from which the lessor purchases the leased item on the basis of a purchase and sale agreement or a leasing agreement. The seller can simultaneously act as the lessee of the leased item (return lease);

participants in a leasing transaction are individuals who are individual entrepreneurs and legal entities acting as lessors and lessees, as well as individuals and legal entities acting as sellers of the leased item.;

lease term - the term for which the leased object is provided to the lessee for temporary possession and use in accordance with the lease agreement. At the same time, early termination of the lease agreement while retaining ownership of the leased object for the lessor does not entail a change in the lease term.

The Law of the Republic of Kazakhstan dated July 5, 2000 No. 78.

This Law regulates relations arising in the process of financial leasing and is aimed at attracting investments based on leasing activities.

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Republic of Kazakhstan

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