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Finance Lease Agreement for Germany

Finance Lease Agreement Template for Germany

A Finance Lease Agreement under German law (governed by the Bürgerliches Gesetzbuch and related regulations) is a specialized financial contract where the lessor provides long-term financing for an asset while transferring substantially all risks and rewards of ownership to the lessee. The agreement details the terms of the lease, including payment obligations, maintenance responsibilities, insurance requirements, and end-of-term options. It incorporates specific German legal requirements regarding financial services, consumer protection (where applicable), and tax treatment, while ensuring compliance with German banking and commercial laws.

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What is a Finance Lease Agreement?

The Finance Lease Agreement serves as a crucial financing instrument in German business practice, combining elements of both financing and leasing. It is primarily used when a business needs to acquire expensive capital assets without making an immediate large capital investment. Under German law, this agreement type is particularly structured to comply with the Bürgerliches Gesetzbuch (German Civil Code) and financial services regulations, while also addressing tax optimization opportunities. The document covers comprehensive terms including asset specification, payment schedules, maintenance obligations, risk allocation, and end-of-term arrangements, making it suitable for complex financial transactions involving significant assets.

What sections should be included in a Finance Lease Agreement?

1. Parties: Identification of lessor and lessee with full legal details

2. Background: Context of the agreement and brief description of the transaction

3. Definitions: Defined terms used throughout the agreement

4. Lease Object: Detailed description of the leased asset and its intended use

5. Term and Delivery: Duration of the lease and delivery arrangements for the asset

6. Lease Payments: Payment structure, amounts, due dates, and payment methods

7. Ownership and Title: Confirmation of lessor's ownership and lessee's rights to use

8. Use and Maintenance: Obligations regarding asset usage, maintenance, and repairs

9. Insurance: Required insurance coverage and responsibilities

10. Risk and Liability: Allocation of risks and liability between parties

11. Warranties and Representations: Statements and guarantees by both parties

12. Default and Remedies: Events of default and corresponding remedies

13. Termination: Conditions and procedures for early termination

14. End of Lease Options: Purchase options, return conditions, or lease extension terms

15. Governing Law and Jurisdiction: Applicable law and dispute resolution procedures

What sections are optional to include in a Finance Lease Agreement?

1. Guarantees: Required when there is a third-party guarantor for the lessee's obligations

2. Import/Export Provisions: Needed for cross-border leasing arrangements

3. Tax Indemnities: Detailed tax provisions when specific tax arrangements are required

4. Sub-letting: Terms for allowing or prohibiting sub-letting of the asset

5. Environmental Compliance: Required for assets with environmental implications

6. Software Licenses: Needed when the leased asset includes software components

7. Service Level Agreements: When maintenance or support services are included

8. Assignment and Security: Detailed provisions for assignment rights and security arrangements

What schedules should be included in a Finance Lease Agreement?

1. Asset Specification: Detailed technical specifications of the leased asset

2. Payment Schedule: Detailed breakdown of all payments including dates and amounts

3. Delivery and Acceptance Protocol: Form for confirming delivery and acceptance of the asset

4. Insurance Requirements: Detailed insurance specifications and requirements

5. Maintenance Schedule: Required maintenance procedures and intervals

6. Return Conditions: Detailed specifications for asset condition upon return

7. Purchase Option Details: Terms and conditions of any purchase options

8. Warranty Documentation: Manufacturer's warranties and guarantees

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions





















































Clauses








































Relevant Industries

Manufacturing

Transportation and Logistics

Healthcare

Construction

Agriculture

Technology and IT

Energy and Utilities

Industrial Equipment

Automotive

Aviation

Real Estate

Telecommunications

Financial Services

Mining and Resources

Relevant Teams

Legal

Finance

Treasury

Risk Management

Operations

Procurement

Tax

Compliance

Commercial

Credit

Business Development

Asset Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Contract Manager

Risk Manager

Asset Manager

Operations Director

Procurement Manager

Financial Controller

Commercial Director

Business Development Manager

Credit Manager

Compliance Officer

Tax Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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