Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
029 - BUREAU OF FINANCIAL INSTITUTIONS
Chapter 133 - LEASING OF PERSONAL PROPERTY BY STATE CHARTERED CREDIT UNION
Section 029-133-III - DEFINITIONS
Current through 2024-38, September 18, 2024
For purposes of this regulation, the following terms have the following meanings:
A. "Closed-end lease" means a lease in which the lessor is responsible for any decrease between the residual value and the actual value of the leased property at the end of the lease.
B. "Credit Union" means a credit union as defined in 9-B M.R.S.A. section131.12.
C. "Direct leasing" means a transaction where the credit union purchases the personal property to be leased from a third-party vendor at the request of the lessee.
D. "Full payout lease" means a lease wherein the lessor must recoup, over the term of the lease, its entire investment in the leased property plus the cost of the financing. This return comes from the monthly payments made by the lessee and the estimated residual value of the property.
E. "Indirect leasing" means a transaction where the credit union purchases a lease after the lease has been executed between a vendor and the credit union member; the credit union may or may not purchase the leased property.
F. "Net lease" means a lease where all the burdens of ownership (e.g., maintenance and repairs, purchase of parts and accessories, renewal of licenses and registrations, insurance on the leased property) are placed on the lessee.
G. "Open-end lease" means a lease in which the lessee is responsible for any difference between the residual value and the actual value of the leased property at the end of the lease.
H. "Residual value" is the value, determined at the outset of the lease, of the leased property at the end of the lease that will be relied upon the by the credit union to meet the full payout requirement.
