Article 5. Ownership of the leased property of the Financial Leasing Act

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 1. Ownership of the leased item transferred to the temporary possession and use of the lessee remains with the lessor for the entire term of the lease agreement, except in cases where the leased item becomes the lessee's property before the expiration of the lease agreement (if such a transfer is provided for by the lease agreement), provided that the lessee fulfills all its monetary obligations under the agreement. leasing.

2. In case of liquidation or bankruptcy of the lessee, the leased item is subject to return to the lessor if the lease price is not paid, except in cases provided for by the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy.

The seizure of the leased item and its confiscation are not allowed.

IZPI's note! Paragraph 3 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

3. Products and other income (including subsidies recognized as income in accordance with the tax legislation of the Republic of Kazakhstan) received as a result of the use of the leased item, as well as separable improvements to the leased item made by the lessee, are the property of the lessee, unless otherwise provided by the lease agreement.

4. In the event that the lessee has made improvements at his own expense and with the written consent of the lessor that are not separable without harm to the leased object, he has the right to reimburse the cost of these improvements after termination of the contract, unless otherwise provided by the lease agreement.

5. The cost of inseparable improvements made by the lessee without the lessor's consent is not reimbursable, unless otherwise provided by legislative acts or the lease agreement.

6. The transfer of ownership, economic management and operational management of leased property to another person is not a reason for changing or terminating the lease agreement. At the same time, the rights and obligations of the lessor defined by the lease agreement are transferred to the new owner.

The Law of the Republic of Kazakhstan dated July 5, 2000 No. 78.

This Law regulates the relations arising in the process of financial leasing and is aimed at attracting investments based on leasing activities.

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Republic of Kazakhstan

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