ALRAQABA . ISSUE 18 53 lessor or to purchase it for a price to be determined, taking into consideration how much the lessee has paid over the life of the lease. A Finance Lease, then, is a contract of a commercial nature that has financial returns on commercial and industrial projects, hence affecting the national economy and pushing the wheel of economic development. Accordingly, Financial Leasing has been defined by economists as a financing process whereby a financing institution provides projects that are commercial, industrial, vocational, etc. with equipment, tools, and machinery that they may need, whether for their establishment, for increasing their productivity, or for replenishment purposes in order to keep pace with technological advancements. First: The Legal Aspect of Financial Leasing: Financial leasing emerged initially in AngloSaxon countries, mainly the US and England. Its first appearance was in the United States in 1952, and in the early 60s of the twentieth century, it reachedEurope through the investment of American capital. The first country to practice leasing in Europe was Britain, and it spread thereafter across the rest of Europe to Belgium, Germany, Netherlands, France, Italy, Spain, Luxemburg, Norway, Denmark, etc. Most lawmakers of the countries that apply Latin Law, such as Belgium, Spain, Portugal, and Italy, have been influenced by the French Legislation of Financial Leasing. Accordingly, these countries have adopted the same principles that were imposed by the French legislator for the regulation of the Finance Lease, who has defined it as “operations of renting production equipment or work tools that are purchased by financing institutions for the purpose of renting, and the institution would remain in possession of such equipment and tools. Yet, these operations- whatever their legal stance may be - may enable the lessee to take possession of all or part of the funds in return for paying the agreed price, which shall be determined taking into consideration the rental charges paid – whether in full or in part - throughout the lease term”. Egyptian lawmakers have taken a similar approach but with few distinctions. In addition, the regulation of Financial Leasing in the Anglo-Saxon system of law differs from that in the Latin system, as the latter provides the lessee with three options at the end of the leasing period. In the Latin system of law, the lessee has the right to either possess the subject matter of the lease, renew the lease, or return the subject matter of the lease to the lessor. The American law, conversely, has not offered such options, whereas the English law has provided the lessee with the right to receive 95% of the equipment’s sales proceeds as a rebate of rentals in case it was sold with the knowledge of the lessor at the end of the leasing period. In Kuwait, on the other hand, Financial Leasing has not been addressed by Kuwait’s laws, nor has it been regulated under a particular law that stipulates its definition and terms. However, Financial Leasing is still commonly used by individuals and companies in Kuwait who practice it by referring to the general code of contracting in Kuwait’s Civil Law as well as the principle of «pacta sunt servanda (agreements must be kept)” whether during the signing of the contract, its fulfillment, or its termination. Thesis
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