master lease definition

master lease

Equipment leasing: Continuing lease arrangement under which additional equipment may be leased by executing a new lease schedule instead of negotiating a new lease contract. It is, in effect, a line of credit the lessee can draw upon to finance additional equipment. Terms of the original lease contract apply to all subsequent additions.

Real estate leasing: Controlling lease under which a lessee can sub-lease the property for a period not extending the term of the master lease.

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