 ABOUT LEASING
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DEFINITION OF THE LEASING
In Romania, leasing operations are mainly defined and discussed in the
provisions of the Government Ordinance no. 57/1997, republished, with its
subsequent changes and completions. Thus, they are defined as being the
operations through which "... a party, called lessor/financer, transfers for a
limited period of time the use right over an asset of his property to the other
party, called the user, upon its request, in exchange of a periodic payment,
called leasing installment, and at the end of the leasing period, the
lessor/financer undertakes to take into account the user’s option right to
purchase the asset, to extend the leasing contract or to cease contractual
relationships."
TYPES OF LEASING CONTRACTS
A. Financial leasing contract
According to Law no. 571/2003 – Fiscal Code, the financial leasing contract is
a leasing contract observing at least one of the following conditions:
the risks and benefits of the ownership right over the asset that makes the
object of the contract are transferred to the user when the leasing contract
becomes effective;
expressly sets forth the transfer of the ownership right over the asset onto
the user when the contract expires;
the leasing period exceeds 75% of the normal use duration of the asset, the
leasing period including any period for which the leasing contract can be
extended.
B. Operational leasing contract
The operational leasing contract is defined as being any leasing contract
entered into by and between the lessor and the lessee, which does not observe
the conditions of the financial leasing contract.
C. Internal leasing contract
The financial or operational leasing contract entered into by and between two
residents.
D. External (cross-border) leasing contract
The financial or operational leasing contract entered into by and between a
non-resident lessor/financer and a resident user.
Specific terms
Lessee/User - Romanian or foreign natural or legal person, part in the
leasing contract, to whom is transferred, during the validity of the leasing
contract, the use right over an asset, in exchange of a periodic payment.
Locator/Financer - Romanian or foreign legal person, part in the leasing
contract, who transfers to the user, during the validity of the leasing
contract and in exchange of a periodic payment, the use right over an asset in
his property.
Supplier/Seller - Romanian or foreign natural or legal person, chosen by
the user with the financer’s consent, who sells to the financer the asset that
is going to make the object of the leasing contract.
Guarantor - Romanian or foreign natural or legal person who undertakes
to take over the user’s payment liabilities deriving from the leasing contract,
in case he did not fulfill them himself towards the financer.
Insurer - insurance company, chosen by the user with the financer’s
consent, ensuring the asset that makes the object of the leasing contract, in
the financer’s favor.
Down payment - the amount paid by the user upon signing the leasing
contract, covering the acquisition value in the negotiated proportion.
Commission/administration fee - the amount payable by the user, covering
the costs with regard to the initialization, analysis and preparation of the
leasing contract.
Length of the leasing contract - the time period that cannot be less
than 12 months, in which the leasing contract is effective and binding upon the
parties.
Leasing installment - the amount periodically paid by the User in
exchange of the use right with regard to the financed asset.
Ingoing value - the value at which the asset was purchased by the
financer, i.e. the purchase price;
Residual value - the value established by the contracting parties, in
exchange of which, after payment of all the leasing installments set forth in
the contract, the ownership right over the asset is transferred from the
financer to the user.
Legislation in force
Law 93/2009, regarding the non-banking financial institutions – Official Gazette no. 259/21st of April 2009
Norms, Rules and Regulations issued by the National Bank of Romania as a control and supervision authority, for non-banking financial institutions
Law 571/2003 regarding the Fiscal Code, with its subsequent amendments and supplements – Official Gazette no. 927/23rd of December 2003
Government Resolution no. 44/2004 for the approval of the Methodological norms of application of Law 571/2003 regarding the Fiscal Code – Official Gazette no. 112/6th of December 2004
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