Lessor Depending on the type of lease, either the owner of the leased property or the owner of a security interest in the leased property. Credit A specific arrangement between a lessee and one of its banks. The bank agrees in the event of a defined event, the lessor can look to the bank to make payment instead of the lessee. This is similar to a security deposit in that it is one way for a lessor to insure that it will be paid under a lease. The primary document between the lessor and lessee containing all the general terms and conditions for leasing.
Individual leases can then be relatively short and incorporate the master lease by reference.
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.