The base rights and responsibilities of the lessor are provided in clause 10 of the Law of Ukraine "On Financial Leasing".

Therefore the lessor has the following rights:
- to invest own and borrowed assets in order to buy the object of the leasing;
- to check if the lessee holds terms of the leasing as concerning the use and keeping the leasing object;
- to withdraw the leasing contract on grounds provided by the law;
- to claim for termination of the leasing contract and return of the leasing object on grounds provided by the law;
- to cover delayed leasing payments in uncontested proceeding on the grounds of notary's record;
- to claim the lessee in order to recover losses on grounds provided by the law and the leasing contract;
- to claim the lessee in order to return the leasing object and to discharge the financial liabilities in certain situations.

The lessor has the following obligations:
- to transfer the leasing object to the lessee on terms and conditions, provided in the leasing contract;
- to warn the lessee about all known defects of the leasing object;
- to discharge bona fide and timely the obligations related to maintenance of the leasing object;
- to recover the lessee his costs for improvement and/or maintaining and/or repairing of the leasing object;
- to accept the leasing object in the case of premature termination of the leasing contract or expiration of the leasing period.

The base rights and responsibilities of the lessee are provided in clause 11 of the Law of Ukraine "On Financial Leasing".

Therefore the lessee has the following rights:
- to choose the leasing object and the seller of the same or to establish certain requirements as concerning the leasing object;
- to withdraw acceptance of the leasing object, which does not comply with designation of the same, terms and conditions of the leasing contract and/or requirements;
- to claim for termination of the leasing contract or to withdraw the leasing contract on grounds provided by the law and the leasing contract;
- to claim the lessor in order to recover losses caused by poor fulfillment or non-fulfilment of the leasing contract.

The lessee has the following obligations:
- to accept the leasing object and use it according to designation of the same and to the leasing contract;
- to discharge bona fide and timely the obligations related to maintenance of the leasing object and to retain it in the functional condition;
- to pay the leasing payments in time;
- to allow lessor's access to the leasing object and ensure possibilities for the lessor to verify due use of the leasing object;
- to notify the lessor and the seller of the leasing object about all the found defects and faults of the leasing object in writing;
- to notify the lessor and the seller of the leasing object about all the delays in making the current or the season maintenance and/or non-maintaining of the leasing object in writing;
- to return the leasing object at expiry or premature termination of the leasing contract in the same condition considering the essential wear & tear of the same.

The lessee bears the risk of accidental loss or damage of the leasing object starting from the moment of acceptance of the same if otherwise is not provided by the leasing contract.

Clause 14 of the Law of Ukraine "On Financial Leasing" provides that the lessee has to maintain the leasing object through full leasing period in the good working condition and bears the costs related to the leasing object maintenance.

The leasing payments are to be made in strict accordance with the leasing contract. In accordance with clause 16 of the Law of Ukraine "On Financial Leasing" the leasing payments can include:

- amount, which recovers a part of the leasing object value;
- payment to the lessor for the leasing service;
- coverage of credit interest;
- other expenses of the lessor, which are connected with the leasing contract.

The above information is provided herein in educational and informative purposes only. It is provided that you have to get appropriate legal advice as regarding the legal and other issues of your interest in Ukraine in order to have the exact, extensive and up-to-date legal and other related information.

Do not hesitate to contact us if you have any questions or issues of legal nature, our Law Firm is working for you and our experienced legal specialists are always ready to help providing the client with appropriate legal consultations, legal reports and summaries, reasonable legal advices and all the other required legal support, assistance, coverage and protection.