(a) (1) Subject to rules adopted under this chapter, a state trust company may become the owner and lessor of tangible personal property for lease financing transactions on a net lease basis on the specific request and for the use of a client.(2) Without the written approval of the Bank Commissioner to continue holding property acquired for leasing purposes under this subsection, the state trust company shall not hold the property more than six (6) months after the date of expiration of the original or any extended or renewed lease period agreed to by the client for whom the property was acquired or by a subsequent lessee.
(1) Subject to rules adopted under this chapter, a state trust company may become the owner and lessor of tangible personal property for lease financing transactions on a net lease basis on the specific request and for the use of a client.
(2) Without the written approval of the Bank Commissioner to continue holding property acquired for leasing purposes under this subsection, the state trust company shall not hold the property more than six (6) months after the date of expiration of the original or any extended or renewed lease period agreed to by the client for whom the property was acquired or by a subsequent lessee.
(b) (1) Rental payments received by the state trust company in a lease financing transaction under this section are considered to be rent and not interest or compensation for the use, forbearance, or detention of money.(2) A lease financing transaction under this section is considered to be a loan or extension of credit for purposes of this subchapter.
(1) Rental payments received by the state trust company in a lease financing transaction under this section are considered to be rent and not interest or compensation for the use, forbearance, or detention of money.
(2) A lease financing transaction under this section is considered to be a loan or extension of credit for purposes of this subchapter.