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Capital Lease
A lease agreement that transfers substantially all the risks and rewards of ownership of an asset to the lessee, effectively treated as an asset purchase for accounting purposes.
Lessee
An individual or entity that leases or rents property or equipment from another entity, known as the lessor.
Lessor
A party that leases an asset to another party, known as the lessee, for periodic payments.
Minimum Lease Payments
The least amount of payments over the lease term that the lessee is obligated to make to the lessor.
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