# 12 CFR § 714.3: Must you own the leased property in an indirect leasing arrangement?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-714.3

## Section

- **Citation:** 12 CFR § 714.3
- **Heading:** Must you own the leased property in an indirect leasing arrangement?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION > SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS > PART 714—LEASING

## 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 CFR § 700.1 § 700.1 Scope.](https://www.frixlaw.com/law-library/statutes/ecfr-12-700.1.md)
- [12 CFR § 700.2 § 700.2 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-700.2.md)
- [12 CFR § 701.1 § 701.1 Federal credit union chartering, field of membership modifications, and conversions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.1.md)
- [12 CFR § 701.2 § 701.2 Federal credit union bylaws.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.2.md)
- [12 CFR § 701.3 § 701.3 Member inspection of credit union books, records, and minutes.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.3.md)
- [12 CFR § 701.19 § 701.19 Benefits for employees of Federal credit unions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.19.md)
- [12 CFR § 701.20 § 701.20 Suretyship and guaranty.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.20.md)
- [12 CFR § 701.21 § 701.21 Loans to members and lines of credit to members.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.21.md)
- [12 CFR § 701.22 § 701.22 Loan participations.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.22.md)
- [12 CFR § 701.23 § 701.23 Purchase, sale, and pledge of eligible obligations.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.23.md)
- [12 CFR § 701.25 § 701.25 Loans to credit unions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.25.md)
- [12 CFR § 701.26 § 701.26 Credit union service contracts.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.26.md)
- [12 CFR § 701.30 § 701.30 Services for nonmembers within the field of membership.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.30.md)
- [12 CFR § 701.32 § 701.32 Payment on shares by public units and nonmembers.](https://www.frixlaw.com/law-library/statutes/ecfr-12-701.32.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-714.3. Check the current official text before relying on it. Not legal advice.