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LAW OF THE AZERBAIJAN REPUBLIC

of May 26, 2026 No. 412-VIIQ

About financial leasing

This Law, according to Items 12, 13 and 15 parts I of article 94 of the Constitution of the Azerbaijan Republic, establishes the legal basis of activities in the field of financial leasing, and also legal, organizational and economic basis of regulation and control in this area for the purpose of development, promotion and strengthening of its role in economic growth.

Chapter 1. General provisions

Article 1. Main determinations

1.1. The main determinations used for the purposes of this Law have the following values:

1.1.1. purchase price - the remained amount paid by the lessee for acquisition of property right to leased property after lease expiration of the contract;

1.1.2. reversionary lease - lease in which the lessee is seller of leased property according to the lease agreement and which provides obligation of the lessee to acquire the property right to leased property after lease expiration of the contract;

1.1.3. lease - lease which provides transfer of leased property by the lessor to property and use of the lessee and corresponds to one or several of the following criteria:

1.1.3.1. The agreement of finance lease provides transfer of object of finance lease to property of the lessee after the term of finance lease or the right of the lessee to acquisition of object of finance lease at the specified or in advance determined price after the term of finance lease;

1.1.3.2. the term of finance lease exceeds 75 percent of useful life of object of finance lease;

1.1.3.3. residual cost of object of finance lease after the term of finance lease makes less than 20 percent from its market price of the beginning of finance lease;

1.1.3.4. the payment amount on finance lease, subject to payment during the term of finance lease, is equal or exceeds at least 90 percent of market price of object of finance lease of the beginning of finance lease;

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