In terms of maintenance, what is required for both true leases and secured loans?

In both true leases and secured loans, the obligation to maintain the equipment often falls on both parties involved in the agreement. For a true lease, while the lessor typically owns the equipment and may have more control over it, the lessee is generally responsible for maintaining the equipment in good working condition to ensure its usability throughout the lease term. This maintenance responsibility helps protect the lessor's asset and retains its value.

In the case of secured loans, the borrower (the party securing the loan) is similarly responsible for maintaining the equipment that serves as collateral. Proper maintenance is crucial to safeguarding the asset's value, which is of particular interest to the lender in the event of default.

Overall, this shared responsibility reflects the interests of both parties—protecting the investment of the lessor and maintaining the asset's viability for the borrower. This mutual obligation underscores the importance of upholding the terms of the agreement in both leasing and secured lending situations.