Gratzia Cross Country Skiing Inc Told Power Leasing Inc That

Gratzia Cross Country Skiing Inc told Power Leasing Inc that it wanted to acquire a machine which cuts cross country ski tracks. Gratzia enters into a lease under which the Power Leasing will buy a track- cutting machine and then lease it to Gratzia for three years. The lease payments will pay Power the full amount of the purchase price plus a return of 14 percent per year. At the end of the three years, Gratzia has an option to buy the machine for $1. This transaction is similar in effect to a secured financing. Power should file a financing statement to register its title to the track- cutting machine under the applicable provincial personal property security legislation to protect his interest.