Section 7701 Of Article 10. Finance Leasing From California Financial Code >> Division 2. >> Chapter 6. >> Article 10.
7701
. An association may become the legal or beneficial owner of
tangible personal property or real property for the purpose of
leasing such property, may obtain an assignment of a lessor's
interest in a lease of such property, and may incur obligations
incidental to its position as the legal or beneficial owner and
lessor of the leased property, if:
(1) The lease is a net, full-payout lease representing a
noncancelable obligation of the lessee, notwithstanding the possible
early termination of the lease.
(2) At the expiration of the lease, the association's interest in
the property shall be liquidated or released on a net basis as soon
as practicable.