What are the laws and regulations on equipment leasing?

The legal provisions on equipment leasing are mainly stipulated in the Contract Law of the People's Republic of China:

Equipment leasing, also known as financial leasing, refers to leasing that substantially transfers all or most of the risks and rewards related to the ownership of assets. The ownership of an asset can eventually be transferred or not.

Article 237 of the Contract Law of the People's Republic of China stipulates that a financial lease contract is a contract in which the lessor purchases the leased object from the seller according to the lessee's choice of the seller's leased property, provides it to the lessee for use, and the lessee pays the rent.

The usual practice of financial leasing is that the lessor pays capital to purchase the technical equipment or other materials selected by the lessee, and leases it to the lessee as the leased object, and the lessee obtains the long-term right to use the leased object according to the contract, pays the rent according to the term agreed in the contract during the lease period, and disposes of the leased object in the manner agreed in the contract upon the expiration of the lease term.

1. Leasing method.

When the project department undertakes a new project, it needs to apply to the company's vice president of production 15 days in advance, so that the vice president of production can dispatch its tower crane with corresponding specifications and meet the requirements of use according to the scale of the project.

2. After the project department undertakes the project, as long as the company has an unleased tower crane, the project department is not allowed to lease it.

3. Calculation of lease time.

The time is calculated from the date of the start of the project and the internal acceptance of the tower crane installation and trial operation, and the deadline is the date when the project department submits the application for suspension and is signed by the vice president of production after verification.

4. Calculation of lease costs.

The lease fee is calculated on a daily basis as specified by the company.

5. Expenses included in the lease.

1) Rental fee during the use of the tower crane.

2) The dismantling fee of the tower crane and the transportation cost of transporting it to the new building.

3) The installation fee of the tower crane of the new building.

4) There is no freight for transporting the building number to the warehouse after demolition. Or the freight of the new building number using the tower crane to transport it from the large warehouse to the new building number.

6. Bear the cost of maintenance parts and expenses.

The model of the construction equipment lease contract is as follows: Lessor: Lessee: In accordance with the relevant provisions of the Contract Law of the People's Republic of China, in accordance with the principle of equality and mutual benefit, in order to clarify the rights and obligations of the lessor and the lessee, this contract is signed by both parties through consultation.

Legal basis: Civil Code of the People's Republic of China

Article 707:Where the lease period is more than six months, it shall be in writing. If the parties do not adopt written form and cannot determine the term of the lease, it shall be deemed to be an indefinite lease. If the fixed lease term rolls over this spring, it is regarded as an irregular lease.

Article 710 If the lessee uses the leased property in accordance with the agreed method or according to the nature of the leased thing, resulting in the loss of the leased thing, it shall not be liable for compensation.

Article 715 The lessee may, with the help of the lessor, make improvements to the leased property or add other things. If the lessee improves or adds other things to the leased property without the consent of the lessor, the lessor may request the lessee to restore the original steak banquet or compensate for the loss.

Operating leases are the classification of leases under the Accounting Standards. Article 5 of the Accounting Standards for Business Enterprises - Leasing (effective from January 1, 2007) stipulates that a financial lease refers to a lease that substantially transfers all the risks and rewards related to the ownership of assets.

Article 10 stipulates that an operating lease refers to a lease other than a financial lease.

At the same time, the by-the-side criteria for leasing meetings also list the following five specific criteria, and if one or more of these criteria are met, it shall be deemed to be a financial lease

1) At the expiration of the lease term, the ownership of the leased assets is transferred to the lessee.

2) The lessee has an option to purchase the leased asset, and the purchase price is expected to be substantially less than the fair value of the leased asset at the time the option is exercised, so that it is reasonably certain that the lessee will exercise such option at the lease commencement date.

3) Even if the ownership of the asset is not transferred, the lease term will account for the majority of the useful life of the leased asset.

4) the present value of the lessee's minimum lease payment at the lease commencement date, which is almost equal to the fair value of the leased asset at the lease commencement date; The present value of the lessor's minimum lease receipt at the lease commencement date is almost equal to the fair value of the leased asset at the lease commencement date.

5) The nature of the leased assets is special, and only the lessee can use them if they are not greatly transformed.

According to the "Accounting Standards for Business Enterprises - Leasing" guide, the main criteria for determining financial leases include: the purchase price referred to by the preferential purchase option is only symbolic, and is actually a nominal purchase price. In practice, it can generally be mastered according to less than 5% (including 5%); The lease term accounts for the majority of the remaining useful life of the leased asset.

"Majority" here means that the lease term accounts for more than 75% (including 75%) of the remaining useful life of the leased asset on the lease commencement date; In the case of the lessee, the present value of the minimum lease payment at the lease commencement date is almost equal to the original book value of the leased asset at the lease commencement date; In the case of the lessor, the present value of the minimum lease receipt at the lease commencement date is almost equal to the original book value of the leased asset at the lease commencement date. "Almost equivalent to" here means more than 90% (including 90%).

It can be seen that, according to the current standard in China, if the present value of the minimum lease payment on the lease commencement date is less than 90% of the original book value of the leased assets on the lease commencement date, it is not a financial lease, but an operating lease as called in the lease accounting standards.

There are no special provisions on the rental of facilities in the lease contract part of the Contract Law, so in principle, there is no need to consider the issue of invalidity or revocation of the contract.

However, consideration should be given to the nature of the facility itself and whether national law has made special provision for such a facility.

As for the standard, then it is completely up to the contract, as long as the standard agreement is made for the specific facility that meets the purpose of its use.