Kelvin Limited, a manufacturing company in Regina, is considering acquiring a piece of land on which to build its new robotics-based production facility, all with a combined market value of $6500 000. If Kelvin ends up financing the acquisition with a lease, SaskLease Limited has limited its involvement to$1 300 000 while a bank is willing to lend Kelvin the remaining $5 200 000. What type of lease would this arrangement imply?

Question

Quizplus · Accepted Answer

A leveraged lease involves three parties: the lessee, the lessor, and a lender. In this case, SaskLease Limited acts as the lessor, the bank as the lender, and Kelvin Limited as the lessee, with the bank providing the majority of the financing.

Kelvin Limited, a Manufacturing Company in Regina, Is Considering Acquiring