1. lease arrangement of property financed by someone other than the lessee or lessor. A long-term creditor finances the lease, and recourse in the event of default is generally not available to the creditor via the lessor.

2. special lease arrangement involving a creditor, lessor, and lessee. A creditor finances most of the cost to acquire an asset, while the lessor puts in a small amount of cash and acquires the asset, using it as security. The asset is then leased to the lessee on a noncancellable basis, and periodic payments to the lessor service the debt. The lessor, having borrowed most of the funds to acquire the asset, has "leveraged" himself, while having both the rewards and the risks of the lease.