Maintenance Clauses Are Provisions Normally Included in an Operating Lease

question 113

True/False

Maintenance clauses are provisions normally included in an operating lease that require the lessor to maintain the assets and to make insurance and tax payments.

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Definitions:

Payable on Demand

Refers to a financial obligation that must be paid by the debtor when the creditor requests it.

Drawer

In the context of banking, the person who writes or issues a check or draft instructing the drawee to pay someone else.

Drawee

The party upon whom a cheque or draft is drawn, and who is expected to pay the amount specified to the payee.

Payee

The individual or entity to whom a cheque or electronic payment is made payable.