The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
A pure operating lease provides the lessee with the use of an asset for the term of the lease in consideration for the payment of rent to the lessor. At the expiry of the lease term, the lessee is obliged to return the asset to the lessor and has no further legal or economic interest in the residual value of the asset.
Under an operating lease, the risk in relation to the asset or equipment falls upon the lessor rather than the lessee throughout the lease term (which is typically for a period of less than ten years).
An operating lease will be treated as being 'off balance sheet' in the accounts of the lessee, which may increase the chances of the lessee being able to obtain additional funding lines.
A synthetic operating lease is a lease which, although intended to finance the eventual acquisition of an asset by the lessee, is treated as an operating lease in accordance with the applicable accounting standards. The lessee will seek to show tha
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Dividends involve a distribution of cash or a distribution of non-cash assets (known as a distribution in kind or a distribution in specie).A scrip dividend (in a tax context, sometimes referred to as a stock dividend) allows a shareholder to receive new shares in a company as an alternative to a
Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been introduced, which affect the following:•proceedings for possession•forfeiture of business leases on the grounds of non-payment of rent•a landlord's right to
A declaratory judgment is a judgment identifying the rights, duties or obligations of one or more parties in a dispute. It is legally binding, but does not order any action by a party. A court may issue it alone or in conjunction with some other relief such as an injunction and can be granted on an
This Precedent letter covers disclosure obligations under CPR 31. It does not apply to proceedings subject to the disclosure pilot scheme under CPR PD 51U. For guidance on the disclosure pilot scheme, see Practice Note: Business and Property Courts—the disclosure pilot scheme. For a client letter on
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