It is a very convenient administrative document so that once agreed, legal terms and conditions never need to be negotiated again. Municipal Lease Same as a capital lease except that the lessee is a public entity. Although the product and features are identical, the legal documentation is different because of the unique status of public entities. Any lease where all costs in connection with the use of the leased property are paid by the lessee and are not part of the periodic lease payments. For instance, maintenance, insurance and taxes are paid directly by the lessee.
Capital leases are generally net leases.
Such a clause is used to prevent lease payment obligations in future years from being classified as debt. Exercise of the non-appropriation clause is not an event of default. Sheet A leasing or receivable sales transaction in which neither the asset nor the lease contract or other liability is shown on the lessee's or seller's balance sheet. Operating Lease Another accounting classification for a lease. A lease that does not meet the criteria for a capital lease is an operating lease.