Académie Internationale de Droit Comparé
International Academy of Comparative Law
Questionnaire
regarding the topic
“Financial Leasing and its Unification by UNIDROIT”
Section Commercial Law
18th International Congress of Comparative Law
Washington, D.C., 25-31 July 2010
submitted to National Reporters and international Organisations
by Herbert Kronke, General Reporter
National Report for: Norway Reporter: Professor dr. juris Filip Truyen, University of
Bergen
Table of contents
A. Relationship between State subject of National Report and UNIDROIT
B. Participation of State subject of National Report/industry representatives/experts
from that State in UNIDROIT work on leasing
C. Participation of State subject of National Report/industry representatives/experts
from that State in international activities of other international Organisations
D. Domestic legislation on (financial) leasing in force in State subject of National Report
or territorial units of that State (see also infra section E)
E. In the alternative (to D), developed body of case law governing leasing transactions in
State subject of National Report or territorial units of that State
F. Preparatory legislative work/projects elaborated by stakeholders (leasing industry,
etc.)/national or regional bar associations/academic circles, etc.
G. Legislation in force (or in preparation or projects under discussion) on secured
transactions (see also infra section H)
H. In the alternative (to G), developed body of case law on secured transactions
2
I. Re-financing techniques used by lessors
J. Tax aspects
K. Accounting aspects
L. Supervision aspects
M. Statistics useful for assessing the economic relevance of leasing transactions in State
subject of National Report
A. Relationship between State subject of National Report and UNIDROIT
(1) Member State of UNIDROIT
Yes
(2) If yes, since .............................................................................................................
(3) If no: according to information available to you, was accession to the UNIDROIT
Statute ever actively considered?
Yes
No
(4) If your answer to question (3) is yes, are you aware of the reasons why it did not
materialise?..............................................................................................................
.................................................................................................................................
B. Participation of State subject of National Report/industry representatives/experts
from that State in UNIDROIT work on leasing
(1) Did representatives of your Government participate (or, to your knowledge, follow the
discussions related to):
(a) preparation of the 1988 Ottawa Convention on International Financial Leasing
(http://www.unidroit.org/english/conventions/1988leasing/1988leasing-e.htm)
X
Yes
3
(b) preparation of the 2001 Cape Town Convention on International Interests in
Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment?
(Cape Town Convention on International Interests in Mobile Equipment:
http://www.unidroit.org/english/conventions/mobile-equipment/mobileequipment.pdf)
(Protocol on Matters Specific to Aircraft Equipment:
http://www.unidroit.org/english/conventions/mobile-equipment/aircraftproto
col.pdf)
No
(c) preparation of the 2007 Luxembourg Protocol on Matters Specific to Railway
Rolling Stock to the 2001 Cape Town Convention?
(http://www.unidroit.org/english/conventions/mobile-equipment/railprotocol.pdf)
No
(d) preparation of the Preliminary draft Protocol on Matters Specific to Space Assets
to the 2001 Cape Town Convention
(http://www.unidroit.org/english/workprogramme/study072/spaceprotocol/main.htm)
No
(e) preparation of the 2008 Model Law on Leasing?
(http://www.unidroit.org/english/documents/2008/study59a/s-59a-17-e.pdf)
No
4
(2) Have any of the relevant UNIDROIT instruments been signed and/or ratified by your
Government (in the case of the Model Law: domestically adopted and implemented)
or is the Government considering to do so?
(a) 1988 Ottawa Convention on International Financial Leasing
signed
ratified/acceded to
r/a under consideration
(b) 2001 Cape Town Convention on International Interests in Mobile Equipment and
Protocol on Matters Specific to Aircraft Equipment
signed
ratified/acceded to
r/a under consideration
(c) 2007 Luxembourg Protocol on Matters Specific to Railway Rolling Stock to the
2001 Cape Town Convention on International Interests in Mobile Equipment
signed
ratified/acceded to
r/a under consideration
(d) 2008 Model Law on Leasing
implemented/adopted
i/a under consideration
(3) Did industry representatives (e.g. trade associations of lessors, other financial
institutions, equipment manufactures, etc.) or specialised members of the bar in your
country participate in (or, alternatively, pro-actively follow work at UNIDROIT and
engage in domestic/international discussion regarding):
(a) preparation of the 1988 Ottawa Convention on International Financial Leasing
X
No
Details: ................................................................................................................
..............................................................................................................................
5
(b) preparation of the 2001 Cape Town Convention on International Interests in
Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment?
X
No
Details: ................................................................................................................
..............................................................................................................................
(c) preparation of the 2007 Luxembourg Protocol on Matters Specific to Railway
Rolling Stock to the 2001 Cape Town Convention?
X
No
Details: ................................................................................................................
..............................................................................................................................
(d) preparation of the Preliminary draft Protocol on Matters Specific to Space
Assets to the 2001 Cape Town Convention
X
No
Details: ................................................................................................................
..............................................................................................................................
(e) preparation of the 2008 Model Law on Leasing?
X
Yes
Details: Finfo (The Association of Norwegian Finance Houses) has given some
remarks to Leaseurope, Brussels ..........................................................................
..............................................................................................................................
(4) Did academic experts from your country participate in (or, alternatively, engage
domestically/internationally through publications, organisation of conferences and
seminars, etc., in the discussion regarding):
(a) preparation of the 1988 Ottawa Convention on International Financial Leasing
X
6
No
Details: ................................................................................................................
..............................................................................................................................
(b) preparation of the 2001 Cape Town Convention on International Interests in
Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment?
X
No
Details: ................................................................................................................
..............................................................................................................................
(c) preparation of the 2007 Luxembourg Protocol on Matters Specific to Railway
Rolling Stock to the 2001 Cape Town Convention?
X
No
Details: ................................................................................................................
..............................................................................................................................
(d) preparation of the Preliminary draft Protocol on Matters Specific to Space Assets
to the 2001 Cape Town Convention
X
No
Details: ................................................................................................................
..............................................................................................................................
(e) preparation of the 2008 Model Law on Leasing?
X
No
Details: ................................................................................................................
..............................................................................................................................
C. Participation of State subject of National Report/industry representatives/experts
from that State in international activities of other international Organisations
7
(1) Did your Government (industry representatives, the bar, academic experts, etc.)
participate in (or, to your knowledge, follow with a view to making use of it for
purposes of domestic law reform) the work of UNCITRAL on a Legislative Guide on
Secured Credit Transactions?
X
no
Details: ................................................................................................................
..............................................................................................................................
(2) Did your Government (industry representatives, the bar, academic experts, etc.)
participate in (or, to your knowledge, follow with a view to making use of it for
purposes of domestic law reform) the preparation by the Organisation of American
States (OAS) of the 2002 Model Inter-American Law on Secured Transactions?
X
no
Details: ................................................................................................................
..............................................................................................................................
(3) Has your Government (industry representatives, the bar, academic experts, etc.) taken
an interest in or even adopted the 1994 Model Law on Secured Transactions prepared
by the European Bank for Reconstruction and Development (EBRD)
X
no
Details: ................................................................................................................
..............................................................................................................................
(4) Has your Government (industry representatives, the bar, academic experts, etc.) taken
an interest in or even adopted legislation on secured credit transactions prepared or
sponsored by other development banks (e.g. Asian Development Bank?)
X
no
8
Details: ................................................................................................................
..............................................................................................................................
(5) Has your Government (industry representatives, the bar, academic experts, etc.) taken
an interest in or even adopted legislation specifically on leasing prepared or sponsored
by the International Finance Corporation (IFC)?
X
no
Details: ................................................................................................................
..............................................................................................................................
(6) Has your Government (industry representatives, the bar, academic experts, etc.) taken
an interest in or even adopted any legislative activities on leasing and/or secured credit
transaction prepared or sponsored by any other international Organisation?
•
if yes, work on ...............................................................................................
•
prepared/sponsored by ...................................................................................
•
yes, interest
adopted
Details: ................................................................................................................
..............................................................................................................................
D. Domestic legislation on (financial) leasing in force in State subject of National Report
or territorial units of that State (see also infra section E)
(N.B.: while this section is targeting countries that have enacted legislation, case law
interpreting and applying the law is obviously of equal importance and interest)
(1) Starting point of
(a) contract practice .............................................................................................
........................................................................................................................
(b) the courts’ legal analysis ................................................................................
........................................................................................................................
(c) analysis as proposed by doctrinal writings ....................................................
........................................................................................................................
9
was/is the notion of “lease” (in civil law systems often derived from the Roman law concept
of locatio-conductio) denoting a transaction under which the owner of property, the lessor,
contractually grants possession of the property to another person, a lessee, for a specified or
unspecified period of time – the lease term – in return for periodic payment of money – the
lease payments. At the end of the term, the property is returned to the lessor.
(2) The transaction so defined is based on provisions set forth in:
(a) the Civil Code of The Act of Liens and Mortgages 1980 section 3-22 states that
a lease contract or similar agreement which in reality serves to secure a sales
price will be regarded as a sales agreement, if the intention is that the lessee shall
become the owner of the object after having paid a certain number of instalments
(year of entry into force/amendments containing leasing provisions);
(b) the Commercial Code of ................................................................................
(year of entry into force/amendments containing leasing provisions);
(c) special legislation (indicate name and date, etc. of relevant act) According to the
Lien Act section 3-17 a lease contract must in order to acquire legal protection,
be made at the latest at the same time as the asset is delivered to the lessee .
Details regarding principal issues, controversies, directions and results of case law
construing and applying relevant previsions ..................................................
(3) Apart from the general notion of “lease”, as addressed in questions (1) and (2), the
more specific concept/technical term of “financial lease” or “financing lease” was
first introduced by:
(a) tax law (indicate name and date of the relevant act or regulation): ...............
(b) accounting law (indicate name and date of the relevant act or regulation):
........................................................................................................................
(c) Civil Code of (year of relevant amendment, etc.) ....................................
........................................................................................................................
(d) Commercial Code of (year of relevant amendment, etc.) ..............................
........................................................................................................................
(e) other special legislation (indicate name and date, etc. of relevant act or other
legislative measure N-GAAP .........................................................................
........................................................................................................................
Details regarding principal issues, controversies, directions and results of case law
construing and applying relevant previsions ........................................................
..............................................................................................................................
10
(4) Does legislation distinguish between commercial/professional leasing transactions
and consumer transactions?
X
Yes
Details Consumer Leasing is in some extent regulated by the Credit Sales Act 1985 as a sale
on credit ...............................................................................................................................
(5) For purposes of conceptualising a “lease” generally or, more specifically, a “financial
lease”, does it matter whether the lease term is less than the useful life of the property
X
Yes
If yes, the concept of
•
“lease” generally is based on the assumption that the lease term is less than its
useful life Yes
Yes
•
specifically, a “financing lease” is based on that assumption
Details: If the leased asset has no residual value at the end of the term, it will be
regarded as a sales agreement ..............................................................................
(6) Does legislation (and/or case law) distinguish:
(a) between “true lease” or “operating lease” and “financing lease”?
Yes
Yes
(b) If yes, is this an accurate definition of the two concepts:
•
in case of an operating lease during the lease term, the lessee has no property
interest in the leased asset other than that which is associated with
possession/right of use; Yes
•
in case of a financing lease the law acknowledges that the function of the
transaction is the financing of the purchase of movable property, i.e. the lessee
is imputed rights and obligations parallel to those of a buyer?
11
(c) Please describe distinction if the one proposed at (6) (b) is not correct. .......
Operating and financial leases are regarded as true leases in contradiction to a
conditional sale (which is not a true lease) ....................................................
(7) Is there special legislation on “hire purchase” and, if so, what are its distinctive
features?
Details: No – Hire Purchase is regarded as a conditional sale and not a lease .......
(8) Does the (general or special hire puchase) law characterise transactions by focussing
on the end-of-term options, e.g. providing that
(a) the extent to which the lessor can expect to receive anything of value back at the
end of the term is critical (e.g. the more the lessor can expect, the more likely the
transaction is a lease);
(b) the lessee may opt unilaterally to purchase the equipment or to renew the lease
for another limited period of time or for the useful life of the goods for nominal
consideration;
(c) the lessee is required to renew the lease or purchase the goods.
(9) Does the law – be it the legislator, be it the courts – make a clear cut distinction
between a lease and a secured-credit transaction (see also supra, question 6, and infra,
part G/H)?
Would the law in the State/the territorial unit(s) subject of this National Report
subscribe to either or both of the following statement(s)?
•
If the lessee has essentially the rights, obligations and risks associated with
ownership of the asset, the transaction is a secured-financing device used to
secure the purchase price.
Yes
•
No
If the lessee is required to pay what is the equivalent of the lessor’s capital
investment plus a credit charge at the commercial rate and if the lessee has the
right to possession of the asset for all or a substantial part of its useful
(economic) life, the transaction is a secured-financing device.
Yes
No
12
(10) Does the law – be it the legislator, be it the courts in interpreting and applying
legislation – reflect a tri-partite relationship between the lessee, the lessor and the
supplier based on two separate but related contracts (i.e. the lease and the supply
contract)?
(a) Supply contract contains terms (approved by the lessee so far as it concerns the
lessee’s interest) between lessor and supplier (who is named by lessee and aware
of purpose). Ownership is transferred to lessor.
(b) Lease of the asset contains terms between lessor and lessee.
(c) Lessors may also be at the same time suppliers.
X
Yes
Details: ................................................................................................................
(d) Supply contract and lease are:
•
strictly and under all circumstances kept separate
No
•
No
if no, the law provides for or permits that the contractual arrangements provide
for one of the three parties (usually the lessee) to ‘pierce’ the analytical ‘veil’
and have rights against the party (usually the supplier) with whom it does not
have a contractual relationship
Details: Yes – according to the supply contract the supplier must treat the
lessee as a buyer ..........................................................................................
(11) Does the law recognise that, in a financing lease, the lessee acquires a proprietary
interest (in rem right) in the leased asset to some extent commensurate with the
payments made?
X
No
If yes, that interest is characterised as:
13
(a) a full proprietary interest based on the following analysis: ...........................
........................................................................................................................ ;
(b) rights arising under some kind of fiduciary relationship (not necessarly a trust in
the technical sense of the common law) between lessor and lessee;
(c) some other interest supported by analogy to any other legal construct?
If (b) or (c), details: .......................................................................................
........................................................................................................................
(12) Does the law provide for special rules regarding:
(a) the lessor’s dispositions of its interest being subject to the rights of the lessee
arising under the lease contract? No
(b) the lessee’s interest in a surplus? No
(c) protection of the lessee’s “right of redemption” and the lessor’s “security”? No
(d) third-party protection (e.g. public disclosure of “security interests” through
registration)? On registered cars
(e) protection of the parties’ rights against a purchaser/acquirer of the asset? Yes
(f) protection of the parties’ rights against creditors of the parties? Yes
(g) protection of the parties’ rights and interests in the lessee’s and/or the lessor’s
insolvency? Yes
(13) Which is the position of:
(a) a creditor of the lessee and the holder of any interest in land or movables to
which the asset becomes affixed? A lessor may lose his ownership if the object is
combined with real property or other main object in such a manner that to
separate it would be disproportionately costly or involve an unreasonable loss of
value.
(b) a creditor of the lessor with respect to the asset? He will have the same right as
the lessor.
(14) Is the lessee-lessor relationship based on unrestricted freedom of contract (see also
section D, question [4])?
No
No
If no, are there mandatory rules designed, e.g., to:
(a) impose on lessor and/or supplier a warranty of fitness for purpose and/or
merchantability? No
14
Details: ..........................................................................................................
........................................................................................................................
(b) impose limits on liquidated damages (see also infra, question 23 [c])?
Details: Not normally .....................................................................................
........................................................................................................................
(c) provide for the lessor’s liability for negligent or intentional acts that violate the
lessor’s duty to ensure quiet possession?
Details: Not normally .....................................................................................
........................................................................................................................
(d) Other mandatory rules: ..................................................................................
........................................................................................................................
(15) Does the law provide for ‘irrevocability’ and ‘independence’ of certain of the parties’
duties when the asset subject to the lease has been delivered to and accepted by the
lessee in the sense that those duties must be performed, regardless of the performance
or non-performance of any other party, unless the party to whom the duty is owed
terminates the lease? Not the law, but the lease contract
(16) At what point in time does the risk of loss pass?
•
Position according to mandatory/suppletive (specify) law: ..............................
...........................................................................................................................
•
Contract practice (‘law in action’) When delivered and accepted ....................
...........................................................................................................................
(17) Which is the position when an asset subject to a lease is damaged without fault of the
lessee or the lessor before the asset is delivered to the lessee?
•
Position according to mandatory/suppletive (specify) law: ..............................
...........................................................................................................................
•
Contract practice (‘law in action’) The lessee ...................................................
...........................................................................................................................
(18) Which are the lessee’s rights where an asset is not delivered, is partially delivered, is
delivered late or fails to conform to the lease?
•
Position according to mandatory/suppletive (specify) law: ..............................
...........................................................................................................................
15
•
Contract practice (‘law in action’) The lessee must act against the supplier and
give a notice to the lessor ..................................................................................
(19) May the
(a) rights of the lessor
(b) duties of the lessor
under the lease be transferred without or only with the consent of the lessee?
Details (e.g. regarding the lessee’s defences or rights of set-off against the lessor
raised against the transferee) Yes - to another bank or finance company (financial
leasing is regarded as a financial arrangement) ......................................................
(20) May the rights and duties of the lessee under the lease be transferred (e.g., and
depending on the contractual arrangements, the case of a sub-lease) without or only
with the consent of the lessor? No
(21) Does the lessor warrant that the quiet possession of the lessee will not be disturbed by
other persons (e.g. a person who has a superior title or right)? Yes
(22) Which are the duties of the lessee to maintain and return the asset? He has to maintain
the asset and return it at the end of the lease-period.
(23) What does the law provide with respect to default and termination (and are the
relevant rules mandatory or does contract practice deviate therefrom)? Nothing
(a) May the parties agree to the events that constitute a default? Yes
(b) Is an aggrieved party required to give a defaulting party notice of default, notice of
enforcement, or notice of termination and a reasonable opportunity to cure? Yes
(c) What does the law provide for with respect to damages, including liquidated
damages, an aggrieved party is entitled to? Nothing – regulated by contract
(d) In which circumstances may a lease be terminated
•
by operation of law?
•
by agreement of the parties? Yes
(24) Is there special legislation on real estate (financial) leasing?
X
Yes
If yes, details: On dwellings ....................................................................................
.................................................................................................................................
(25) Is there special legislation on international (financial) leasing?
16
X
No
If yes, details: .........................................................................................................
.................................................................................................................................
(26) Is there special legislation regarding sale-and-lease-back transactions entered into by
governmental entities, local authorities etc. and/or government owned, municipal or
similar “public” enterprises?
X
No
If yes, details: ..........................................................................................................
.................................................................................................................................
E. In the alternative (to D), developed body of case law governing leasing transactions in
State subject of National Report or territorial units of that State
(NB: while this section is targeting typical ‘case-law countries’, reports may identify any
legislative reference to leasing transactions)
(1) Starting point of
(a) contract practice .............................................................................................
........................................................................................................................
(b) the courts’ legal analysis ................................................................................
........................................................................................................................
was/is the notion of “lease” denoting a transaction under which the owner of the
property, the lessor, contractually grants possession of the property to another
person, a lessee, for a specified or unspecified period of time – the leas term – in
return for periodic payment of money – the lease payments. At the end of the
term, the property is returned to the lessor.
(2) The transaction so defined is/was:
(a) based entirely on case law as developed by the courts;
(b) based on an embryonic or rudimentary statement of some kind in legislation but
from there on essentially developed by the courts.
If (b), indicate details ....................................................................................
........................................................................................................................
17
(3) Apart from the general notion of “lease”, as addressed in questions (1) and (2), the
more specific concept of “financial lease” (or “financing lease”) was first introduced
by
(a) tax law (indicate name and date of the relevant act or regulation or refer to case
law): ...............................................................................................................
........................................................................................................................
(b) accounting law (indicate name and date of the relevant act or regulation or refer
to case law): ...................................................................................................
........................................................................................................................
(c) other special legislation (indicate name and date of the relevant act or
regulation): ....................................................................................................
........................................................................................................................
(d) the courts in deciding disputes based on general rules or principles of private
law: ................................................................................................................
........................................................................................................................
(4) Does the law distinguish between commercial/professional leasing transactions and
consumer transactions?
Yes
No
Details: ...................................................................................................................
.................................................................................................................................
(5) For purposes of conceptualising a “lease” generally or, more specifically, a “financial
lease”, does it matter whether the lease term is less than the useful life of the property
Yes
No
If yes, the concept of
a. “lease” generally is based on the assumption that the lease term is less than its
useful life
b. specifically, a “financing lease” is based on that assumption
18
(6) Does the law distinguish:
(a) between “true lease” or “operating lease” and “financing lease”?
Yes
No
(b) If yes, is this an accurate definition of the two concepts:
•
in case of an operating during the lease term, the lessee has no property interest
in the leased asset other than that which is associated with possession;
•
in case of a financing lease the law acknowledges that the function of the
transaction is the financing of the purchase of movable property, i.e. the lessee
is imputed rights and obligations parallel to those of a buyer?
(c) Please describe distinction if the one proposed at (6) (b) is not correct. .......
........................................................................................................................
(7) Do the courts apply special rules to “hire purchase” and, if so, what are its distinctive
features?
Details: ...................................................................................................................
.................................................................................................................................
(8) Does the (general or special hire purchase) law characterise transactions by focussing
on the end-of-term options, e.g. providing that
(a) the extent to which the lessor can expect to receive anything of value back at the
end of the term is critical (e.g. the more the lessor can expect, the more likely the
transaction is a lease);
(b) the lessee may opt unilaterally to purchase the equipment or to renew the lease
for another limited period of time or for the useful life of the goods for nominal
consideration;
(c) the lessee is required to renew the lease or purchase the goods.
(9) Does the law make a clear cut distinction between a lease and a secured-credit
transaction (see also supra, question 6, and infra, sections G/H)?
(a) Would the law in the State/the territorial unit(s) subject of this National Report
subscribe to either or both of the following statement(s)?
19
•
If the lessee has essentially the rights and obligations associated with
ownership of the asset, the transaction is a secured-financing device used to
secure the purchase price.
Yes
•
No
If the lessee is required to pay what is the equivalent of the lessor’s capital
investment plus a credit charge at the commercial rate and if the lessee has the
right to possession of the asset for all or a substantial part of its useful
(economic) life, the transaction is a secured-financing device.
Yes
(10)
No
Does the law reflect a tri-partite relationship between the lessee, the lessor
and the supplier based on two separate but related contracts (i.e. the lease and the
supply contract)?
(a) Supply contract contains terms (approved by the lessee so far as it concerns the
lessee’s interest) between lessor and supplier (who is named by lessee and aware
of purpose). Ownership is transferred to lessor.
(b) Lease of the asset contains terms between lessor and lessee.
(c) Lessors may also be at the same time suppliers.
Yes
No
(d) Supply contract and lease are:
•
strictly and under all circumstances kept separate
Yes
•
No
if no, one of the three parties (e.g. the lessee) may ‘pierce’ the analytical ‘veil’
and have rights against the party with whom it does not have a contractual
relationship
20
Details: .......................................................................................................
.....................................................................................................................
(11)
Does the law recognise that, in a financing lease, the lessee acquires a
proprietary interest (in rem right) in the leased asset to some extent commensurate
with the payments made?
Yes
No
If yes, that interest is characterised as:
(a) a full proprietary interest based on the following analysis: ...........................
........................................................................................................................ ;
(b) rights arising under some kind of fiduciary relationship (not necessarly a trust in
the technical sense of the common law) between lessor and lessee;
(c) some other interest supported by analogy to any other legal construct?
If so, details: ..................................................................................................
........................................................................................................................
(12)
Does the law provide for special rules regarding:
(a) the lessor’s dispositions of its interest being subject to the rights of the lessee
arising under the lease contract?
(b) the lessee’s interest in a surplus?
(c) protection of the lessee’s “right of redemption” and the lessor’s “security”?
(d) third-party protection (e.g. public disclosure of “security interests” through
registration)?
(e) protection of the parties’ rights against a purchaser/acquirer of the asset?
(f) protection of the parties’ rights against creditors of the parties?
(g) protection of the parties’ rights and interests in the lessee’s and/or the lessor’s
insolvency?
(13)
Which is the position of:
(a) a creditor of the lessee and the holder of any interest in land or movables to
which the asset becomes affixed?
21
(b) a creditor of the lessor with respect to the asset?
(14)
Is the lessee-lessor relationship based on unrestricted freedom of contract?
Yes
No
If no, are there mandatory rules designed, e.g., to:
(a) impose on lessor and/or supplier a warranty of fitness for purpose and/or
merchantability?
Details: ..........................................................................................................
........................................................................................................................
(b) impose limits on liquidated damages (see also infra, question 23 [c])?
Details: ..........................................................................................................
........................................................................................................................
(c) provide for the lessor’s liability for negligent or intentional acts that violate the
lessor’s duty to ensure quiet possession?
Details: ..........................................................................................................
........................................................................................................................
(d) Other mandatory rules: ..................................................................................
........................................................................................................................
(15)
Does the law provide for ‘irrevocability’ and ‘independence’ of certain of the
parties’ duties when the asset subject to the lease has been delivered to and accepted
by the lessee in the sense that those duties must be performed, regardless of the
performance or non-performance of any other party, unless the party to whom the duty
is owed terminates the lease?
(16)
At what point in time does the risk of loss pass?
(17)
Which is the position when an asset subject to a lease is damaged without fault
of the lessee or the lessor before the asset is delivered to the lessee?
(18)
Which are the lessee’s rights where an asset is not delivered, is partially
delivered, is delivered late or fails to conform to the lease?
(19)
May the
(a) rights of the lessor
(b) duties of the lessor
22
under the lease be transferred without or only with the consent of the lessee?
Details (e.g. regarding the lessee’s defences or rights of set-off against the lessor
raised against the transferee) ..................................................................................
.................................................................................................................................
(20)
May the rights and duties of the lessee under the lease be transferred (the case
of a sub-lease) without or only with the consent of the lessor?
(21)
Does the lessor warrant that the quiet possession of the lessee will not be
disturbed by other persons (e.g. a person who has a superior title or right)?
(22)
Which are the duties of the lessee to maintain and return the asset?
(23)
What does the law provide with respect to default and termination?
(a) May the parties agree to the events that constitute a default?
(b) Is an aggrieved party required to give a defaulting party notice of default, notice of
enforcement, or notice of termination and a reasonable opportunity to cure?
(c) What does the law provide for with respect to damages, including liquidated
damages, an aggrieved party is entitled to?
(d) In which circumstances may a lease be terminated
(24)
•
by operation of law?
•
by agreement of the parties?
Is there case law addressing specifically real estate (financial) leasing?
Yes
No
If yes, details: .............................................................................................
.....................................................................................................................
(25)
Is there case law specifically addressing trans-border financial-leasing
transactions?
Yes
No
If yes, details: .............................................................................................
.....................................................................................................................
23
(26)
Is there case law specifically addressing sale-and-lease back transactions
entered into by governmental entities, local authorities etc., and/or government owned,
municipal or similar “public” enterprises?
Yes
No
If yes, details: .............................................................................................
.....................................................................................................................
F. Preparatory legislative work/projects elaborated by stakeholders (leasing industry,
etc.)/national or regional bar associations/academic circles, etc.
Describe the main features of any such projects currently under preparation or discussed in
the past without having been adopted (where applicable with reference to the questions raised
supra sections D and E).
.............................................................................................................................................
.............................................................................................................................................
G. Legislation in force (or in preparation or projects under discussion) on secured
transactions (see also infra section H)
(NB: while this section is targeting countries that have enacted or are contemplating to
enact legislation, relevant case law is obviously of equal importance and interest)
(1) Is there comprehensive legislation on secured-credit transactions in force?
Yes
Yes
(2) If yes, indicate name and date of the relevant act or other legislative instrument:
The Act of Liens and Mortgages of 8.2.1980 nr2 ..................................................
.................................................................................................................................
(3) If no, but if there are any projects/draft legislation, etc., give details: ...................
.................................................................................................................................
(4) Regarding the main features of legislation in force:
(a) is the law based on:
24
(i) a unitary approach (i.e. there is only one regimen governing the interest of a
secured creditor – “security taker”/”obligee” – and the rights and duties of the
debtor – “security giver”/”obligor” –, independent of how their position might
be characterized from a businessman’s point of view)?
Details: Yes ....................................................................................................
.....................................................................................................................
(ii) an approach distinguishing according to traditional legal concepts, such
as:
•
the interest of the seller under a retention-of-title agreement;
•
the interest of a financier extending credit in exchange for being granted an
interest under a security agreement;
•
any other agreement supported by any other conceptual analysis?
Details: .......................................................................................................
.....................................................................................................................
(b) Does the relevant law make specific reference to a financial lease (e.g. by
excluding a financial lease from its scope of application, by including it under
certain circumstances, etc.)?
Details: A lease contract or similar agreement which in reality serves to secure a
sales price will be regarded as a sales and sales lien agreement, if it is the
intention that the lessee shall become the owner of the object after having paid a
certain number of instalments. Even where the lessee does not have the right to
acquire ownership, some of the sections will similarly apply........................
........................................................................................................................
(5) Are a secured creditor’s interests (of any kind referred to in question G [4]) disclosed
in public registries?
X
Yes
(a) If yes, is registration
(i) required for the creation of the interest? No
(ii) required (only) for purposes of acquiring priority in the case of the security
giver’s default or insolvency? Yes (ex: sales lien and leases)
(b) If yes, is it
(i) a debtor-based registration system? Yes
(ii) an asset-based registration system?
(c) If yes, is the registry based
25
(i) on the technique of notice filing?
(ii) on the filing of the relevant documentation and a procedure requiring the
registrar to verify the legal position publicized through registration?
(d) If no, which are in your view the reasons for not requiring disclosure of interests
through registration? The lessee is not the owner and you usually do not register
ownership on chattels. Sale lien are limited in time (5 years).......................
........................................................................................................................
H. In the alternative (to G), developed body of case law on secured transactions
The main features of the law, as developed by the courts, are:
Details (regarding, in particular, questions of “unitary” v. “diffentiating approach”, legal
position of a lessor in case of competing interests that have arisen under security agreements,
etc. in case of the lessee’s default or insolvency, existence of registries, etc. – see supra, G, D,
E).
.............................................................................................................................................
.............................................................................................................................................
I. Re-financing techniques used by lessors
(1) Do lessors operating in State subject of National Report finance the acquisition of
assets to a significant extent by employing their own funds?
X
Yes
Details: Finance leasing can only be offered by financial institutions with a concession
from the authorities. ................................................................................................
.................................................................................................................................
(2) Is it correct to assume that re-financing techniques employed depend primarily on the
shareholding structure of the lessor (i.e. lessors that are part of the same group of
companies as the manufacturer of the assets are re-financed within the group; lessor
subsidiaries of banks are financed by their parent banks; smaller lessors have recourse
to bank loans, etc.)?
Yes
No
(3) Do independent lessors to a significant extent refinance their activities by having
recourse to loans from commercial banks?
26
Yes
No
Details (in particular regarding the collateral arrangements imposed by lenders, etc.)
.................................................................................................................................
.................................................................................................................................
(4) Do independent lessors practice receivables financing (fiduciary assignment of rental
claims against lessees; factoring, forfaiting, etc.)?
Yes
No
Details: ...................................................................................................................
.................................................................................................................................
(5) Do lessors refinance their activities to a significant extent through securitization?
Yes
No
If yes,
(a) is securitization a refinancing technique employed only with respect to highvalue equipment (aircraft, railway rolling stock, space assets, ships, etc.) or
generally?
Details: ..........................................................................................................
........................................................................................................................
(b) Do the collateral arrangements between lessor, (‘special purpose vehicles’) SPVs
as issuers of notes or commercial paper (if any) and ultimate investors have an
impact on the contractual relationship between lessor and lessee?
Yes
No
Details: ................................................................................................................
........................................................................................................................
J. Tax aspects
(1) Is financial leasing in the State or the territorial unit of a State that is subject of this
National Report favoured by tax law, in particular:
(a) tax benefits for the lessee? No
27
(b) tax benefits for the lessor? No
(c) tax benefits for any other party? No
Details: ................................................................................................................
........................................................................................................................
(2) Are similar or comparable tax benefits also available in case of secured-credit
transactions of a more traditional nature (see supra, question G [4])?
(3) A much discussed regimen for trans-border leasing transactions is/was one under
which parties are/were able to utilize differences in national laws concerning the
characterization of a transaction in such a way that the lessor is treated as owner of the
asset so as to be entitled to depreciation allowances under the laws of its jurisdiction
while under the law of the lessee’s jurisdiction it is considered the owner and thus be
able to claim depreciation allowances (“double dip”)
(a) Might that be the current position if the State subject of the National Report were
the lessor’s or the lessee’s jurisdiction?
Yes
Yes
(b) Has that been the position in the past prompting intervention by the legislator or
the tax authorities aimed at disallowing it?
Details: Cross border leasing is not common in Norway .....................................
..............................................................................................................................
K. Accounting aspects
(1) In the State or territorial unit of a State subject of this National Report accounting is
governed by the following law(s) or other legislative act(s):
Details: The Act of Accounting 17.7.1988 nr 56 ....................................................
.................................................................................................................................
(2) Which one of the major sets of accounting standards is commonly used (e.g. GAAP,
IAS)?
Details: N-GAAP. IAS for listed companies .........................................................
.................................................................................................................................
(3) Is the following a correct, if simplified, description of the different position under the
relevant accounting rules:
28
(a) future rentals under finance leases are required to be capitalized in the accounts
of the lessor and the lessee in a way comparable to instalments under an
instalment sale, whereas
(b) in the case of a true operating lease rentals are treated in the balance sheet of the
parties as accruing year by year? Yes
Explain details (also in case the above is not correct): In accounting there is no
parallelism. According to IAS the lessor will treat financial lease as a loan, while
the lessee according to N-GAAP treat the lease as an ordinary rent.. ..................
..............................................................................................................................
(4) How does accounting law and practice in particular:
(a) impact the use of financial leasing as a type of transaction for obtaining access to
various categories of equipment? Yes
(b) Impact the use of (other) secured-credit arrangements (see supra, question G
[4])? No
Details: ................................................................................................................
..............................................................................................................................
L. Supervision aspects
(1) Are lessors regulated and supervised:
(a) as any other financial institution (e.g. commercial banks)? Yes
(b) specifically as lessors?
If yes, give details (e.g. name and date of the relevant act(s) or other legislative
instruments(s); name of the competent regulatory agency; means of regulation and
oversight) The Act of June 10, 1988 No 40 regarding Financial Enterprises ......
..............................................................................................................................
(2) Does the characterization of a transaction as a financial lease and the application of
relevant rules and principles of private law by the courts depend on whether the lessor
is a regulated business? No
Details: ...................................................................................................................
.................................................................................................................................
(3) Are there any other aspects of a regulatory nature that may be relevant in this context?
Details: As financial institutions, the lessors are in some way restricted in taking too
much risk on residuals .............................................................................................
.................................................................................................................................
29
M. Statistics useful for assessing the economic relevance of financial leasing transactions
in State subject of National Report
Details: http://www.finfo.no/ .............................................................................................
.............................................................................................................................................