TSIC 6491—Financial Lease Agreement

Where 6491 sits

1. K Financial and insurance activities.
2. 64 Financial service activities (excluding insurance and pension funds).
3. 649 Other financial service activities (excluding insurance and pension funds).
4. 6491 Financial Lease Agreement

Contains 3 narrower codes

• 64911 Financial leasing for vehicles.
• 64912 Financial lease agreements for machinery and equipment used in business operations.
• 64913 Financial lease contracts for consumer goods (excluding motor vehicles and motorcycles).

What 6491 includes

• A financial lease is a lease agreement for the entire useful life of an asset. The lessee benefits from using the asset and assumes the risks associated with ownership. Upon termination of the lease, ownership of the asset may or may not be transferred. This lease includes all or virtually all costs and interest. A financial lease is similar to a commercial bank loan, but instead of cash, it's a loan in the form of an asset. The lessee chooses the type, format, and seller of the asset, and then informs the lessor to purchase the asset for leasing to the lessee. This type of contract often includes a clause stating that the lessee has the right to purchase the asset upon termination of the lease.

What 6491 excludes

• Operating leasing is classified under division 77 according to the type of goods being leased.

6491 in other systems