§ 61.4 Definition of capital lease.

FederalRegulations

Ask Donna

How this section applies to your facts.

Title 38—Pensions, Bonuses, and Veterans' Relief > CHAPTER I—DEPARTMENT OF VETERANS AFFAIRS > PART 61—VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM > Subpart A—General Provisions

This text was captured on Sep 22, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

A capital lease, for purposes of this part, means a conditional sales contract that either:

(a) Will be in effect for all of the period of recovery listed in § 61.67(b); or

(b) That satisfies one of the following criteria:

(1) The lease transfers ownership to the lessee at the expiration of the lease term.

(2) The lease contains a bargain purchase option.

(3) The present value of lease payments that are applied to the purchase are equal to or greater than 90 percent of the fair market value of the asset.

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 2064)

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.