Which of the following is correct with respect to "finance leases"?
A) A finance lease generally involves four parties.
B) Finance leases are governed by the Truth in Lending Act rather than the UCC.
C) The finance lessor functions as a source of credit.
D) The lessor's primary function in a finance lease is to provide the goods.

Question

Quizplus · Accepted Answer

The finance lessor acts as a source of credit in a finance lease, providing financing to the lessee for the acquisition of the asset. The lessor buys the asset from the supplier and leases it to the lessee, essentially financing the lessee's use of the asset.

Which of the Following Is Correct with Respect to "Finance