Agreement on Financial Leasing Contracts
关于融资租赁合同的协议
ຂໍ້ຕົກລົງ ວ່າດ້ວຍສັນຍາເຊົ່າສິນເຊື່ອ
Summary
This Agreement, issued by the Bank of the Lao PDR, stipulates principles, regulations, and measures for the conclusion of financial lease contracts to ensure that lessors, lessees, and related parties perform rights and obligations in accordance with the contract and fairly protect the legitimate rights and interests of all parties, consisting of four chapters and twenty articles, covering contract conclusion, interest and fee calculation, late payment penalties, collection, early purchase of leased assets, contract termination, assignment of rights and obligations, prohibited acts, and penalties.
Articles
Article 1
Purpose. This agreement stipulates the principles, regulations, and measures concerning financial leasing contracts, applicable between the lessor (financial lessor), lessee (financial lessee), and related parties, to ensure that the contract content is complete, concise, clear, and definite, thereby safeguarding the exercise of rights and performance of obligations in accordance with the contract, aiming to fairly protect the legitimate rights and interests of all parties in accordance with relevant laws and regulations.
Article 2
Financial Lease Contract. A financial lease contract refers to an agreement reached in writing between the lessor and the lessee, whereby rights and obligations related to the creation, modification, and termination of the lease property are established.
Article 3
Interpretation of Terms. The terms used in this Agreement have the following meanings: 1. Declining balance method of interest calculation means that on the date the lessor calculates interest, the interest is computed based on the actual outstanding balance (principal) of the finance lease; 2. Average (equal installment) method of interest calculation means that the interest is computed based on the total approved amount of the finance lease at the initial stage, and the calculated interest is added to the approved amount, then repaid in installments over the term, with each installment amount being equal, or as agreed between the lessor and lessee in the finance lease contract; 3. Installment payment means the principal and interest that the lessee must pay to the lessor in accordance with the repayment schedule attached to the finance lease contract; 4. Overdue unpaid installment amount means the installment payment that the lessee fails to pay to the lessor within the time stipulated in the contract, excluding late payment fees and other charges.
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