Who owns the equipment leased pursuant to a 103 lease?
In some states such as Arizona, California, Florida, and Ohio, the lessor must retain title to the equipment during the full lease term. In these title retention states, the 103 lease should provide that title is transferred to the government only upon payment of all the lease payments and the purchase option price, if any. In other states, title may be transferred at lease inception. Where title to the equipment resides is an important issue because in some states it affects the enforceability of the 103 lease. Thus a careful review of applicable law is necessary.
