Court Opinion

ID: 9593444
Source: CourtListenerOpinion
Date Created: 2023-08-22 00:22:32.523795+00
Date Added: 2024-06-11T18:01:21.601105
License: Public Domain

Benham, Judge,
concurring specially.
While I agree wholeheartedly with the majority’s reversal of the judgment below, I specially concur to point out that the termination clause is only one factor to consider in determining whether an instrument is a true lease or a conditional sales contract with the lease serving as the security interest.
“ ‘(W)hether a lease is intended as security is to be determined by the facts of each case. . . . Facts that the courts have found relevant include the total amount of rent the lessee is required to pay under the lease [cit.]; whether the lessee acquires any equity in the leased property [cit.]; the useful life of the leased goods [cit.]; the nature of the lessor’s business [cit.]; and the payment of taxes, insurance and other charges normally imposed on ownership. [Cits.] Consideration of the facts of this case in light of these factors leads [me] to conclude that the lease in question was not intended as security.’ ” Matter of Marhoefer Packing Co., 674 F2d 1139, 1145 (1982).