Final answer:
CAR PART VII, subpart 5 governs the operation of leased aircraft by a non-registered owner, detailing requirements and conditions including operational control and maintenance responsibilities.
Step-by-step explanation:
The regulation that governs the operation of a leased aircraft by a non-registered owner is found in the Canadian Aviation Regulations (CARs). Specifically, the correct option for this regulation would be CAR PART VII, subpart 5. This part outlines the requirements and conditions under which a person may operate an aircraft that is registered in the name of another person, typically the lessor. It includes provisions related to operational control, maintenance, and the requirement for a lease or interchange agreement to be in place that details the responsibilities of each party.