Interpretation of the Supreme People's Court on Issues concerning the Application of Law in the Trial of Disputes over the Lease Financing Contracts has come into force since March 1, 2014 (‘Interpretation’)
Compared to the rapid development of financial lease business, Rules of the Supreme People’s Court on Issues concerning the Application of Law in the Trial of Disputes over the Lease Financing Contracts (No. 19[1996]Fa Fa) is relatively lagged. However, Interpretation has regulated many aspects on those issues related to the lease finance, such as the standard on identifying a lease financing relationship, how to link the lease financing contract with purchase contract, the protection for the leaser’s ownership to the leased item, etc. Hereinafter are 3 important aspects: ‘Sale-leaseback’ shall be deemed as the legal relation of finance lease It’s…