Gross capitalized cost
Gross capitalized cost means the amount agreed upon by the lessor and the lessee as the value of the leased property and any items that are capitalized or amortized during the lease term, including but not limited to taxes, insurance, service agreements, and any outstanding prior credit or lease balance.Capitalized cost reductionmeans the total amount of any rebate, cash payment, net trade-in allowance, and noncash credit that reduces the gross capitalized cost. Theadjusted capitalized costequals the gross capitalized cost less the capitalized cost reduction, and is the amount used by the lessor in calculating the base periodic payment.
12 CFR § 213.2
For the purposes of this part the following definitions apply: