Operational leasing

The institute of business or operational leasing is not prescribed in the positive regulations of the Republic of Serbia. In the business practice of economic entities, the term operational leasing is used, which means the lease of movable and immovable property, i.e. sale with instalment payments of the price for the purchased item, which is precisely regulated by the provisions of Art. 567 to 599 (lease of property) or Art. 542 to 551 (sale with instalment payments of the price) of the Law on Obligations “Official Gazette of the SFRY”, No. 29/78, 39/85, 45/89 – decision of the USJ and 57/89, “Official Gazette of the FRY” “, No. 31/93,” Official Gazette of Serbia and Montenegro “, No. 1/2003 – Constitutional Charter and” Official Gazette of RS “, No. 18/2020).

Operating leasing activities may be performed by companies in the field of production (equipment), i.e. companies in the trade area as an ancillary activity within their core production business, i.e. trade.

Operating leasing activities are not within the competence of the National Bank of Serbia and are not subject to the obligation to provide share capital from Article 10a of the Law on Financial Leasing (“Official Gazette of RS”, No. 55/2003, 61/2005, 31/2011 and 99/2011 – dr. laws) (from now on: the Law on Financial Leasing). Continue reading Operational leasing

Parties to a financial leasing transaction

Law on financial leasing governs:

  • financial leasing transactions
  • financial lease agreements
  • rights and obligations of parties to a financial leasing transaction
  • terms of performing financial leasing transactions
  • supervision of Lessors’ operations and
  • the Register of Financial Leases.

Financial Leasing Transaction

A financial leasing transaction means a financial intermediation transaction which is performed by the Lessor and implies that the Lessor, while retaining the right of ownership of the Lease Asset, transfers to the Lessee, for an agreed period of time, the right to possession and use of the Lease Asset, including all risks and rewards incidental to ownership, in return for the Lease Payment which the Lessee pays to the Lessor, provided that at least one of the following conditions has been met: Continue reading Parties to a financial leasing transaction