S.L. 123.88 Art. 7Terminationbefore due date

(1) For the purposes of these rules, where a finance lease is terminated prior to the expiration of the lease term, the following provisions shall apply:

(a) where a lessor obtains repossession of a leased asset and enters into a second or subsequent lease agreement or agreements in respect of the same asset, the total of the deduction for wear and tear to which the lessor is entitled in respect of the asset shall be equal to the total of the deduction for wear and tear not availed of under the previous agreement or agreements;

(b) article 24 of the Act shall apply where -

(i) a lessor disposes of an asset after having obtained repossession of the said asset as mentioned in paragraph (a) of this sub-rule; or

(ii) the lessee takes over the asset against a consideration.

(2) Where a finance lease has been terminated before the due date, the finance leasing company and the lessee shall both be under obligation to give notice in writing to the Commissioner of the said termination and notice shall be given within thirty days of the happening thereof.