Leveraged Lease Agreement Law and Legal Definition

The leveraged lease agreement is “an agreement whereby the lessee selects the type and cost of equipment to be leased. The equipment is then purchased by the lessor from the manufacturer and leased by the lessor to the lessee. The lessor pays part of the cost of the equipment with its own funds and finances the balance by the issuance of a note in favor of an institutional lender. The note is typically secured by a security interest in the equipment and by an assignment of the lease.” In re After Six, 177 B.R. 219, 225-226 (Bankr. E.D. Pa. 1995)