Source: http://www.law.cornell.edu/ucc/2A/2A-303
Timestamp: 2014-09-19 12:00:35
Document Index: 256437451

Matched Legal Cases: ['§ 2', 'ART 3', '§ 2', '§ 2', '§ 2', '§ 2']

§ 2A-303. ALIENABILITY OF PARTY's INTEREST UNDER LEASE CONTRACT OR OF LESSOR's RESIDUAL INTEREST IN GOODS; DELEGATION OF PERFORMANCE; TRANSFER OF RIGHTS. | UCC - Uniform Commercial Code | LII / Legal Information Institute
Uniform Commercial Code › U.C.C. - ARTICLE 2A - LEASES (2002) › PART 3. EFFECT OF LEASE CONTRACT › § 2A-303. ALIENABILITY OF PARTY's INTEREST UNDER LEASE CONTRACT OR OF LESSOR's RESIDUAL INTEREST IN GOODS; DELEGATION OF PERFORMANCE; TRANSFER OF RIGHTS. § 2A-303. ALIENABILITY OF PARTY's INTEREST UNDER LEASE CONTRACT OR OF LESSOR's RESIDUAL INTEREST IN GOODS; DELEGATION OF PERFORMANCE; TRANSFER OF RIGHTS.
(1) As used in this section, "creation of a security interest" includes the sale of a lease contract that is subject to Article 9, Secured Transactions, by reason of Section 9-102(1)(b).
(3) A provision in a lease agreement which (i) prohibits the creation or enforcement of a security interest in an interest of a party under the lease contract or in the lessor's residual interest in the goods, or (ii) makes such a transfer an event of default, is not enforceable unless, and then only to the extent that, there is an actual transfer by the lessee of the lessee's right of possession or use of the goods in violation of the provision or an actual delegation of a material performance of either party to the lease contract in violation of the provision. Neither the granting nor the enforcement of a security interest in (i) the lessor'sinterest under the lease contract or (ii) the lessor's residual interest in the goods is a transfer that materially impairs the prospect of obtaining return performance by, materially changes the duty of, or materially increases the burden or risk imposed on, the lessee within the purview of subsection (5) unless, and then only to the extent that, there is an actual delegation of a material performance of the lessor.
(4) A provision in a lease agreement which (i) prohibits a transfer of a right to damages for default with respect to the whole lease contractor of a right to payment arising out of the transferor's due performance of the transferor's entire obligation , or (ii) makes such a transfer an event of default, is not enforceable, and such a transfer is not a transfer that materially impairs the prospect of obtaining return performance by, materially changes the duty of, or materially increases the burden or risk imposed on, the other party to the lease contract within the purview of subsection (5).
‹ § 2A-302. TITLE TO AND POSSESSION OF GOODS.
§ 2A-304. SUBSEQUENT LEASE OF GOODS BY LESSOR. ›