Research On The Type Of Finance Leases Judged As Loans

In recent years,with the rapid development of China’s financial leasing market,the number of financial leasing dispute cases in courts across the country has increased significantly.The disputes between lessors and lessees over the legal relationship and the validity of contract transactions have become increasingly prominent in such cases,and there are also cases in judicial practice that the parties’financial leasing transactions judged to be a loan.Through the study of the cases in which a financial lease transaction has been judged to be a lending relationship in the past five years,the focus of the dispute,the reasons for the adjudication and the results of the adjudication are analyzed and sorted out,and it is found that the focus of the dispute in such cases is mainly how to determine the legal relationship of the contract,whether the contract is valid,and how the contract should be handled after the loan is determined.Meanwhile,the financing facts in such cases are manifested in the flow of funds from the lessor to the lessee,the type of transaction is manifested in the lessor entrusting the lessee to purchase the leased property by itself,and the lessor purchasing the lessee’s own property as leased property.First of all,the identification of the legal relationship of the transaction should be based on the leased property itself.The fictitious leased property,the unqualified leased property or the ownership of the leased property has not been transferred to the lessor do not meet the characteristics of financial leasing.Secondly,with the development of judicial practice,the courts generally held that the transaction judged to be loan did not produce the consequences of contract invalidity.The contract was not invalid due to false expression of intention or due to the lack of constituent elements of financial leasing,and the loan was different from the lending business which prohibited by the mandatory provisions.Thirdly,the terms of the financial lease contract,such as rent,handling fee(or consulting fee),and ownership of leasehold property,should be adjusted in accordance with the legal rules of lending.In order to decrease legal risk of financial leasing transactions judging to be lending,it is necessary for the lessor to strengthen the selection and risk control of the leased property in business,strictly strengthen the review of leased property,optimize the registration management of leased property,and at the same time strengthen the punishment of lessors for fictitious leased property.