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Im Barry marks with marks Associates and Id like to share with you some of what Ive learned over the years representing banks equipment lenders and equipment leasing companies what is an equipment finance agreement for many years we had two types of equipment financing one was a true lease fair market value lease in which the lessor is the owner of the equipment and the lessee merely has a leasehold interest the second is what is commonly called a buck out lease intended as security security least dirty lease financing lease a number of other names thats a lease in which the lessee at the end of the term either owns the equipment outright or purchase it for a nominal value such as a dollar the problem is that the dollar out lease was treated by some courts as a true lease we have a case for instance in Florida in which the fact that there was a dollar purchase option did not protect the lessor from a claim of liability for damage caused by the lessee under that states insurance
