Which of the following is correct with respect to "finance leases"?
A) A finance lease generally involves four parties.
B) Finance leases are governed by the Truth in Lending Act rather than the UCC.
C) The finance lessor functions as a source of credit.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Finance leases involve the lessor providing the lessee with the use of a specific asset, where the lessor acts essentially as a financier, allowing the lessee to use the asset over the lease term in exchange for payments. This setup means the finance lessor is indeed functioning as a source of credit, providing financial services rather than acting merely as a supplier of goods.

Which of the Following Is Correct with Respect to "Finance