Financial leasing entity
 6. (1) The conditions that must be satisfied for a financial leasing entity to be a permitted entity are as follows: 1. The financial leasing entity does not direct its customers or potential customers to particular dealers in the property that is the subject of the financial lease agreement or conditional sales agreement. 2. The financial leasing entity does not enter into financial lease agreements or accept assignments of a conditional sales agreements relating to motor vehicles having a gross vehicle weight of less than 21 tonnes. 3. The financial leasing entity does not enter into or accept assignments of conditional sales agreements with individuals relating to personal household property. 4. The financial leasing entity does not enter into or accept assignments of financial lease agreements or conditional sales agreements, other than financial lease agreements and conditional sales agreements that have as their primary purpose the extension of credit to a lessee or purchaser. 5. The financial leasing entity does not enter into financial lease agreements or conditional sales agreements in respect of personal property, including personal property that is affixed to real estate but not including personal household property, unless the personal property, i. was selected by the lessee or purchaser and acquired by the financial leasing entity at the request of the lessee or purchaser, or ii. was previously acquired by the financial leasing entity in respect of another financial lease agreement or conditional sales agreement. 6. The financial leasing entity does not enter into financial lease agreements or conditional sales agreements that entail responsibility on the part of the financial leasing entity to install, promote, service, clean or repair the property that is the subject of the agreement. 7. Every financial lease agreement and conditional sales agreement entered into by the financial leasing entity includes a provision, i. that assigns to the lessee or purchaser the benefit of all warranties, guarantees and other undertakings made by a manufacturer or supplier in respect of the personal property that is the subject of the agreement, or ii. that sets out the responsibilities of the financial leasing entity in respect of all warranties, guarantees and other undertakings made by a manufacturer or supplier in respect of the personal property that is the subject of the agreement. 8. Every financial lease agreement entered into by the financial leasing entity must yield, i. a return to the financial leasing entity of not less than the amount of the financial leasing entity’s total investment in the property that is the subject of the agreement, and ii. a rate of return that is reasonable in the circumstances, taking into consideration the terms and conditions of the agreement and the rate of return sought by other lessors in respect of the financial leasing of similar property under similar conditions. 9. The total estimated residual value of all leased properties held by the financial leasing entity that are referred to in paragraph 4 of subsection (3) does not at any time exceed 10 per cent of the total cost of acquisition of those leased properties by the financial leasing entity.  O. Reg. 121/08, s. 6 (1). (2) In paragraph 2 of subsection (1), “gross vehicle weight” means, in respect of a motor vehicle, the gross vehicle weight that is specified by the manufacturer of the motor vehicle as the loaded weight of, (a) the motor vehicle, or (b) in the case of a motor vehicle designed to pull a trailer, the motor vehicle and the trailer.  O. Reg. 121/08, s. 6 (2). (3) In determining the rate of return under a financial lease agreement for the purposes of subparagraph 8 ii of subsection (1), the following factors shall be taken into consideration: 1. The amount of the rental charges under the agreement. 2. The estimated tax benefits accruing to the financial leasing entity in respect of the agreement, including any tax credits and capital cost allowance that the financial leasing entity is entitled to claim in respect of the property that is the subject of the agreement. 3. If the lessee or a third party who is dealing at arm’s length with the financial leasing entity has, on or before the start of the agreement, either contracted to purchase the property that is the subject of the agreement or unconditionally guaranteed the resale value of the property when the agreement expires, the amount of the purchase price or guaranteed resale value. 4. If paragraph 3 does not apply, the amount of the estimated residual value of the property that is the subject of the agreement or 25 per cent of the cost of acquisition of the property, whichever is less.  O. Reg. 121/08, s. 6 (3).