VI What requirements must a financial leasing contract ensure? Can the lessee terminate the financial leasing contract early? In what cases does a financial leasing contract terminate early? Through today’s article, let’s learn about this issue with Pham Consult!
What requirements must a financial leasing contract ensure?
Pursuant to Article 18 of Circular 26/2024/TT-NHNN, a financial leasing contract must be made in writing in accordance with the provisions of the law on civil contracts and must contain at least the following contents:
(1) Name and address of the financial lessor and the financial lessee;
(2) Name, technical characteristics, type, price, delivery, installation, warranty period of the leased asset, quality of the leased asset, other terms and conditions related to the leased asset;
(3) Purpose of using the leased asset;
(4) Financial leasing currency, debt repayment currency;
(5) Financial leasing, time of receiving financial leasing debt; financial leasing interest rate; principles and factors for determining interest rates, time of determining financial leasing interest rates in cases where the financial leasing interest rate is adjusted; types of fees and applicable fee levels; costs as prescribed by law;
(6) Term of financial lease and term of financial lease repayment;
(7) Restructuring of debt repayment term, notification of overdue principal, interest rate applied to overdue principal balance, interest rate applied to late rental interest;
(8) Repayment of principal, financial lease interest and order of collection of principal, financial lease interest; early repayment;
(9) Cases of early termination of financial lease contracts, time of early termination and handling of arising issues;
(10) Agreement on measures to ensure the implementation of the lessor’s ownership rights to the financial leased assets;
(11) Responsibilities, handling of breaches of contract, rights and obligations of the parties;
(12) Method of dispute resolution;
(13) Other contents of the financial lease contract agreed upon by the lessor and the lessee in accordance with legal regulations.
Note:
– The financial leasing contract is effective from the date agreed upon by the parties in the financial leasing contract.
– The registration of the financial leasing contract is carried out in accordance with the provisions of law.
Can the lessee terminate the financial leasing contract before the due date?
According to Article 16 of Circular 26/2024/TT-NHNN, the lessee has the following rights:
– Receive and use the financial leasing assets according to the provisions of the financial leasing contract.
– Decide to purchase the assets or continue to lease after the end of the lease term.
– Request the lessor to compensate for damages when the lessor violates the terms and conditions as stipulated in the financial leasing contract.
– Has the right to terminate the financial leasing contract before the due date as stipulated in the financial leasing contract.
– The lessee may repair and increase the value of the leased assets if agreed upon in the financial leasing contract.
– Other rights as prescribed by law and the financial leasing contract.
Thus, the lessee has the right to terminate the financial leasing contract before the due date as prescribed in the financial leasing contract.
In which cases does the financial leasing contract terminate before the due date?
According to the provisions of Article 20 of Circular 26/2024/TT-NHNN, the financial leasing contract may be terminated before the due date when one of the following cases occurs:
– The lessor discovers that the lessee has provided false information, violated the content of the agreement in the contract, financial leasing agreement, or security contract;
– The financial leasing asset is lost, damaged, cannot be repaired or replaced;
– The lessor violates one of the terms and conditions that are grounds for termination of the financial leasing contract, as prescribed in the financial leasing contract;
– Cases of early termination of financial leasing contracts according to the provisions of law and financial leasing contracts.
Some notes are as follows:
(1) The financial lessor and the financial lessee shall specify the cases of early termination of financial leasing contracts according to the above provisions in the financial leasing contract.
In case one party unilaterally terminates the financial leasing contract, the party unilaterally terminating the contract must immediately notify the other party of the termination of the contract.
The content of the notice of unilateral termination of the contract and the time of early termination of the contract shall be agreed upon by the parties in the financial leasing contract in accordance with the provisions of law.
(2) The handling of early termination of financial leasing contracts shall be implemented according to the provisions of Article 21 of Circular 26/2024/TT-NHNN and relevant legal provisions.
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