Distinguish between the following: 'Net net net lease' and 'update lease'.
CS Professional · Financial, Treasury and Forex Management · PYQS · December 2015
Distinguish between the following: 'Net net net lease' and 'update lease'.
Answer & Explanation:
Net net net lease: In triple net (net net net) lease, the lessee is obliged to take care of maintenance, taxes and insurance of the equipment. The lessee has to pay the net amount of three types of costs, which how this term got its name. Update lease: Update lease is intended to protect the lessee against the risk of obsolescence. The lessor agrees to replace obsolete asset with new one at specified rent.
Topics: Leasing
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