Regulations
New Products Introduced to the Financial Leasing Sector by the New Law:
1. Operating Lease
The main feature of an operating lease is that the leased equipment is typically not transferred to the lessee at the end of the contract term, and the leasing company retains ownership and repossesses the equipment.
2. Sale and Lease Back
This allows a company to sell its depreciable movable or immovable assets recorded in its balance sheet to a leasing company, and then lease them back under a financial lease for a specified term, with the option to repurchase at the end of the lease term.
3. Reproduced Copies of Computer Software
Excluding patents and intellectual property rights, custom software, software programs, and hardware-integrated programs used by companies can now be financed through leasing.
4. Assets Retaining Their Essential Nature Regardless of Being Integral Parts or Accessories
Any equipment that retains its essential nature can now be subject to leasing, regardless of whether it is classified as an integral part or an accessory. This includes items such as ship or aircraft engines, elevators, ventilation systems, etc.
Key Operational Flexibilities Introduced by the New Law:
1. Freedom to Determine Contract Duration
The new law allows the parties to freely determine the duration of the financial leasing agreement.
2. Payment Periods and Delivery Timeline
Even if the goods have not yet been manufactured or delivered to the lessee, lease payments may commence from the date of the contract. Unless otherwise agreed by the parties, the delivery of the goods must take place within 2 years from the contract date.
3. Contract Format and Registration
The requirement for financial leasing contracts to be executed as a notarized deed has been abolished. A written agreement is now sufficient, and the contract will be registered with the Association of Financial
Leasing, Factoring and Financing Companies.
However, under the Land Registry Law, financial leasing contracts related to real estate must still be executed in notarized form.
Contracts related to movable assets with their own specific registries (such as automobiles) must be registered and annotated in the respective registries where the assets are recorded.