CIVIL CODE OF THE REPUBLIC OF BELARUS
§ 6. Financial Lease
Article 636. Financial Lease Contract
The Lessor under a financial lease contract undertakes to purchase the property specified by the Lessee from the seller (supplier) specified by them and to transfer this property to the temporary ownership and usage of the Lessee at a charge for commercial purposes. In this case the Lessor incurs no liability for the selection of the object of leasing and seller (supplier).
(as specified in the Law of the Republic of Belarusdated 20.07.2006 N 160-З)
A financial lease contract can contain a provision about the selection of the seller (supplier) and procured property being carried out by the Lessor.
(as specified in the Law of the Republic of Belarusdated 20.07.2006 N 160-З)
Article637. Subject of Financial Lease Contract
A subject of financial lease contract can include all non-consumable products used in business activities except for land lots and other natural objects.
Article638. Seller’s Notification about Property Lease
(as specified in the Law of the Republic of Belarusdated20.07.2006 N 160-З)
When purchasing the property for the Lessee the Lessor should notify the seller (purchaser) in written form of the property being purchased for leasing to a particular person.
Article639. TransferofSubjectofFinancial Lease Contract to Lessor
1. Unless otherwise specified in the financial lease contract, the property that constitutes the subject of the contract is transferred by the seller (supplier) directly to the Lesssor at the place of location of the latter.
(as specified in the Law of the Republic of Belarusdated20.07.2006 N 160-З)
2. In case the property that constitutes the subject of the contract is not transferred to the Lessee within the term specified in the contract (or in case no term is specified — within a reasonable period of time), the Lessee is entitled to claim for termination of the contract and compensation of losses if the arrears occurred due to circumstances under Lessor’s control.
Article640. Transfer of Risk of Accidental Loss or Damage of Property to Lessee
The risk of accidental loss or damage of the leased property is transferred to the Lessee upon receipt the leased property by them unless otherwise specified in the financial lease contract.
Article641. Seller’s Liability
1. The Lesser is entitled to impose requirements arising from sales and purchase contract (supply contract) concluded between the seller (supplier) of the property that constitutes the subject of the financial lease contract and the Lesser, in particular regarding the quality and quantity of the property, the delivery term and in other cases of improper fulfillment of the contract by the seller (supplier). In this case the Lessee has the rights and incurs obligations as specified in this Code except for the obligation to pay for the purchased property, as if hey were a party to the sales and purchase contract (supply contract) for the said property. However, the Lessee is not entitled to terminate the sales and purchase contract (supply contract) with the seller (supplier) without the Lesser’s consent.
(as specified in the Law of the Republic of Belarusdated20.07.2006 N 160-З)
The Lessee and the Lessor are considered joint creditors in their relations with the seller (supplier) (clause 307).
(as specified in the Law of the Republic of Belarusdated20.07.2006 N 160-З)
2. Unless otherwise specified in the financial lease contract, the Lessor is not liable to the Lessee for fulfillment of requirements arising from the sales and purchase contract (supply contract) except for the cases when the Lessor is in charge of selecting a seller (supplier). In this case the Lessee at their own discretion is entitled to impose requirements arising from the sales and purchase contract (supply contract) either directly to the seller (supplier) or to the Lessor who both incur joint liability.
(as specified in the Law of the Republic of Belarusdated20.07.2006 N 160-З)