NY UCC § 1-203 (2021)
2021 New York Laws UCC - Uniform Commercial Code Article 1 Part 2 - General Definitions and Principles of Interpretation 1-203 - Lease Distinguished From Security Interest.

Section 1--203. Lease Distinguished From Security Interest.  (a)  Whether  a  transaction in the form of a lease creates a lease or security interest is determined by the facts of each case.  (b) A transaction in the form of a lease creates a  security  interest if  the consideration that the lessee is to pay the lessor for the right to possession and use of the goods is an obligation for the term of  the lease and is not subject to termination by the lessee, and:  (1)  the  original  term  of the lease is equal to or greater than the remaining economic life of the goods;  (2) the lessee is bound to renew the lease for the remaining  economic life of the goods or is bound to become the owner of the goods;  (3)  the  lessee  has  an  option to renew the lease for the remaining economic life of the  goods  for  no  additional  consideration  or  for nominal   additional   consideration  upon  compliance  with  the  lease agreement; or  (4) the lessee has an option to become the owner of the goods  for  no additional  consideration  or  for nominal additional consideration upon compliance with the lease agreement.  (c) A transaction in the form of a lease does not  create  a  security interest merely because:  (1)  the present value of the consideration the lessee is obligated to pay the lessor for the right to possession  and  use  of  the  goods  is substantially  equal  to or is greater than the fair market value of the goods at the time the lease is entered into;  (2) the lessee assumes risk of loss of the goods;  (3) the lessee agrees to  pay,  with  respect  to  the  goods,  taxes, insurance,  filing,  recording,  or  registration  fees,  or  service or maintenance costs;  (4) the lessee has an option to renew the lease or to become the owner of the goods;  (5) the lessee has an option to renew the lease for a fixed rent  that is  equal to or greater than the reasonably predictable fair market rent for the use of the goods for the term of the renewal  at  the  time  the option is to be performed; or  (6)  the  lessee  has an option to become the owner of the goods for a fixed price that is equal to or greater than the reasonably  predictable fair  market  value  of  the  goods  at  the  time  the  option is to be performed.  (d) Additional consideration  is  nominal  if  it  is  less  than  the lessee's  reasonably  predictable  cost  of  performing  under the lease agreement if the option is not exercised.  Additional  consideration  is not nominal if:  (1)  when  the option to renew the lease is granted to the lessee, the rent is stated to be the fair market rent for the use of the  goods  for the  term  of  the  renewal  determined  at the time the option is to be performed; or  (2) when the option to become the owner of the goods is granted to the lessee, the price is stated to be the fair market  value  of  the  goods determined at the time the option is to be performed.  (e)  The  "remaining  economic  life  of  the  goods"  and "reasonably predictable" fair market rent, fair market value, or cost of  performing under the lease agreement must be determined with reference to the facts and circumstances at the time the transaction is entered into.