In the event of lessee bankruptcy, the lessor's legal position with the leased asset is this:

Question

Quizplus · Accepted Answer

In the event of lessee bankruptcy, the lessor has the right to take back the leased asset, but there are no salvage guarantees. This means that the lessor may have to sell the asset in its current condition and is not guaranteed to recoup the full value. However, the lessor's ability to repossess the asset is a form of recourse in this situation. The lessor may also still have the option to pursue the lessee for any outstanding lease payments due.

In the Event of Lessee Bankruptcy, the Lessor's Legal Position