# 12 C.F.R. § 714.3 (2026): Must you own the leased property in an indirect leasing arrangement?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_3

## Section

- **Citation:** 12 C.F.R. § 714.3 (2026)
- **Heading:** Must you own the leased property in an indirect leasing arrangement?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter VII: NATIONAL CREDIT UNION ADMINISTRATION / Part 714: LEASING / § 714.3: § 714.3   Must you own the leased property in an indirect leasing arrangement?

## Text

You do not have to own the leased property in an indirect leasing arrangement if:
(a) You obtain a full assignment of the lease. A full assignment is the assignment of all the rights, interests, obligations, and title in a lease to you, that is, you become the owner of the lease;
(b) You are named as the sole lienholder of the leased property;
(c) You receive a security agreement, signed by the leasing company, granting you a sole lien in the leased property and the right to take possession and dispose of the leased property in the event of a default by the lessee, a default in the leasing company's obligations to you, or a material adverse change in the leasing company's financial condition; and
(d) You take all necessary steps to record and perfect your security interest in the leased property. Your state's Commercial Code may treat the automobiles as inventory, and require a filing with the Secretary of State.

## Nearby sections

- [12 C.F.R. § 714.1 (2026) § 714.1   What does this part cover?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_1.md)
- [12 C.F.R. § 714.2 (2026) § 714.2   What are the permissible leasing arrangements?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_2.md)
- [12 C.F.R. § 714.3 (2026) § 714.3   Must you own the leased property in an indirect leasing arrangement?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_3.md)
- [12 C.F.R. § 714.4 (2026) § 714.4   What are the lease requirements?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_4.md)
- [12 C.F.R. § 714.5 (2026) § 714.5   What is required if you rely on an estimated residual value greater than 25% of the original cost of the leased property?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_5.md)
- [12 C.F.R. § 714.6 (2026) § 714.6   Are you required to retain salvage powers over the leased property?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_6.md)
- [12 C.F.R. § 714.7 (2026) § 714.7   What are the insurance requirements applicable to leasing?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_7.md)
- [12 C.F.R. § 714.8 (2026) § 714.8   Are the early payment provisions, or interest rate provisions, applicable in leasing arrangements?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_8.md)
- [12 C.F.R. § 714.10 (2026) § 714.10   What other laws must you comply with when engaged in leasing?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_10.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P714_S714_3. Check the current official text before relying on it. Not legal advice.