Glossary of Common Leasing Terms

Add-On:
Advance Payments:
Alteration and Addition:
Amortization:
Amortization Schedule:
APR:
Assignment of Contract:

B

Bargain Purchase Option:
Basis Points:
Book Value:
Broker:

C

Capital Lease:
Capitalized Cost:
Capped Fair Market Value Lease:
Casualty Occurrence:
Casualty Value:
CDLA (Computer Dealers and Lessors Association):
Certificate of Acceptance:
Certificate of Incumbency:
Conditional Sale:
Coterminous:
Cut-off Date:

D

Date of Acceptance:
Date of Installation:
Default:
Default Remedy:
Depreciation:
Discount Rate:
Discounted Cash Flow:
Discounted Lease:
Double-declining Balance Depreciation:

E

Early Termination:
Economic Life:
Effective Lease Rate:
Equipment Lease Schedule:
Equity:
Estimated Residual Value:
Estimated Useful Life:

F

Fair Market Value:
Fair Market Value Lease:
Fair Market Value Renewal Option:
Finance Lease:

L

Lease Schedule:
Lessee:
Lessor:

M

Master Lease:
Minimum Taxpayer:
Money Over Money:

N

Net Lease:
Net Present Value (NPV):
Normal Wear and Tear:

O

Off Balance Sheet Financing:
Operating Lease:

P

Parent Guarantee:
Payment in Advance:
Payment in Arrears:
Present Value:
Prior Notice:
Purchase Option:

Q

Quiet Enjoyment:

R

Renewal Option:
Rentals:
Residual Value:
Return on Equity (ROE):

S

Sale-leaseback:
Sale-type Lease:
Single-investor Lease:
Skip-payment Lease:
Step-up or Step-down:
Stipulated Loss Value:
Straight-line Depreciation:
Sublease:

T

Tax Benefit on Equipment:
Tax Lease:
Termination Charge:
True Lease:

U

Uniform Commercial Code (UCC):
Useful Life:
Upgrade: