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Definition of First amendment lease. A lease which contains a first amendment clause. Used for lessees who may opt to purchase equipment early. Typically- includes a penalty for non-purchase or requires the lessee to renew for a fixed number of months. Used to shorten term and get operating lease treatment. Also called a Stretch Lease in Canada.
full payout lease. Definition. Lease arrangement in which a seller or owner (the lessor) of the leased asset or property recovers the full cost (original cost plus profit margin, interest, and other charges) of the item. Lease period (term) for such leases is usually equal to the economic life of the asset. A capital lease is a full payout lease whereas an operating lease is not. http://www.businessdictionary.com/definition/full-payout-lease.html.