{"data":{"id":"us/12-cfr-714.3","jurisdiction":"us","citation":"12 CFR 714.3","heading":"Must you own the leased property in an indirect leasing arrangement?","body":"You do not have to own the leased property in an indirect leasing arrangement if:\n(a) You obtain a full assignment of the lease. A full assignment is the assignment of all the rights, interests, obligations, and title in a lease to you, that is, you become the owner of the lease;\n(b) You are named as the sole lienholder of the leased property;\n(c) You receive a security agreement, signed by the leasing company, granting you a sole lien in the leased property and the right to take possession and dispose of the leased property in the event of a default by the lessee, a default in the leasing company's obligations to you, or a material adverse change in the leasing company's financial condition; and\n(d) You take all necessary steps to record and perfect your security interest in the leased property. Your state's Commercial Code may treat the automobiles as inventory, and require a filing with the Secretary of State.","path":["Title 12—Banks and Banking","CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION","SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS","PART 714—LEASING"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"ab56cd75d3e018b62c2b41d9f4567f4d810ba1a2c3773c3f04a5203f54045865","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-714.2","next":"us/12-cfr-714.4"},"notice":"GroundRules: Original legal text. Not legal advice."}