38 CFR § 61.4 - Definition of capital lease.

---
identifier: "/us/cfr/t38/s61.4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "38 CFR § 61.4 - Definition of capital lease."
title_number: 38
title_name: "Pensions, Bonuses, and Veterans' Relief"
section_number: "61.4"
section_name: "Definition of capital lease."
chapter_name: "DEPARTMENT OF VETERANS AFFAIRS"
part_number: "61"
part_name: "VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "38 U.S.C. 501, 2001, 2002, 2011, 2012, 2013, 2061, 2064."
regulatory_source: "78 FR 12604, Feb. 25, 2013, unless otherwise noted."
cfr_part: "61"
---


# 61.4 Definition of capital lease.

A capital lease, for purposes of this part, means a conditional sales contract that either:

(a) Will be in effect for all of the period of recovery listed in § 61.67(b); or

(b) That satisfies one of the following criteria:

(1) The lease transfers ownership to the lessee at the expiration of the lease term.

(2) The lease contains a bargain purchase option.

(3) The present value of lease payments that are applied to the purchase are equal to or greater than 90 percent of the fair market value of the asset.

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 2064)