Glossary of Terms

Print Friendly, PDF & Email

Put Option

The requirement of a lessee to purchase equipment at a particular time and at a predetermined price. In a lease transaction, this is a lessor's right to force the lessee (or some third party) to purchase the equipment at the end of the lease term. IRS guidelines prohibit put options in tax-oriented leases. (Courtesy www.elfaonline.org)

« Back