Gross Capitalized Cost Law and Legal Definition

According to 15 USCS Appx 12 CFR § 213.2 (f), [Title 15. Commerce and Trade; Chapter 41. Consumer Credit Protection; Consumer Leasing. (Regulation M)] the term gross capitalized cost means “the amount agreed upon by the lessor and the lessee as the value of the leased property and any items that are capitalized or amortized during the lease term, including but not limited to taxes, insurance, service agreements, and any outstanding prior credit or lease balance. Capitalized cost reduction means the total amount of any rebate, cash payment, net trade-in allowance, and noncash credit that reduces the gross capitalized cost. The adjusted capitalized cost equals the gross capitalized cost less the capitalized cost reduction, and is the amount used by the lessor in calculating the base periodic payment.”