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This Finance Lease Agreement template is designed for use in the Indian jurisdiction where leasing transactions are governed by multiple regulatory frameworks, including RBI guidelines and GST regulations. It is particularly suitable for businesses seeking to acquire high-value assets through financial lease arrangements, offering an alternative to outright purchase while maintaining tax and accounting advantages. The document incorporates all essential elements required under Indian law for a valid finance lease, including detailed financial terms, asset specifications, maintenance obligations, and end-of-lease provisions. It addresses key regulatory requirements such as RBI's guidelines for NBFCs, GST compliance, and state-specific stamp duty obligations, while providing flexibility to accommodate various asset types and industry-specific requirements.

1. Parties: Identification of the lessor and lessee with complete legal details

2. Background: Context of the lease arrangement and brief description of the transaction

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Asset Description: Detailed description of the leased asset(s) and their specifications

5. Lease Term and Delivery: Duration of the lease and conditions for delivery and acceptance of the asset

6. Lease Rentals and Payment Terms: Payment structure, amounts, due dates, and payment methods

7. Security Deposit: Details of security deposit amount, terms, and conditions for refund

8. Insurance and Maintenance: Requirements for insurance coverage and maintenance responsibilities

9. Lessee's Covenants and Obligations: Comprehensive list of lessee's duties and responsibilities

10. Lessor's Covenants and Obligations: Comprehensive list of lessor's duties and responsibilities

11. Risk and Liability: Allocation of risks and responsibilities between parties

12. Events of Default: Definition of default events and consequences

13. Termination: Conditions and process for early termination or expiry

14. End of Lease Options: Options available at lease end (purchase, renewal, return)

15. Representations and Warranties: Standard representations and warranties by both parties

16. Indemnification: Mutual indemnification clauses and liability limitations

17. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

18. Notices: Process and addresses for formal communications

19. General Provisions: Standard boilerplate clauses including assignment, amendments, etc.