§490:2A-303  Alienability of party's
interest under lease contract or of lessor's residual interest in goods;
delegation of performance; transfer of rights.  (a)  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 490:9-109(a)(3).



(b)  Except as provided in subsection (c) and
section 490:9-407, a provision in a lease agreement which (i) prohibits the
voluntary or involuntary transfer, including a transfer by sale, sublease,
creation or enforcement of a security interest, or attachment, levy, or other
judicial process, of an interest of a party under the lease contract or of the
lessor's residual interest in the goods, or (ii) makes such a transfer an event
of default, gives rise to the rights and remedies provided in subsection (d),
but a transfer that is prohibited or is an event of default under the lease
agreement is otherwise effective.



(c)  A provision in a lease agreement which (i)
prohibits a transfer of a right to damages for default with respect to the
whole lease contract or 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 (d).



(d)  Subject to subsection (c) and section
490:9-407:



(1)  If a transfer is made which is made an event of
default under a lease agreement, the party to the lease contract not making the
transfer, unless that party waives the default or otherwise agrees, has the
rights and remedies described in section 490:2A-501(b);



(2)  If paragraph (1) is not applicable and if a
transfer is made that (i) is prohibited under a lease agreement or (ii)
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, unless the party not making the transfer
agrees at any time to the transfer in the lease contract or otherwise, then,
except as limited by contract, (i) the transferor is liable to the party not
making the transfer for damages caused by the transfer to the extent that the
damages could not reasonably be prevented by the party not making the transfer
and (ii) a court having jurisdiction may grant other appropriate relief,
including cancellation of the lease contract or an injunction against the
transfer.



(e)  A transfer of "the lease" or of
"all my rights under the lease", or a transfer in similar general
terms, is a transfer of rights and, unless the language or the circumstances,
as in a transfer for security, indicate the contrary, the transfer is a
delegation of duties by the transferor to the transferee.  Acceptance by the
transferee constitutes a promise by the transferee to perform those duties. 
The promise is enforceable by either the transferor or the other party to the
lease contract.



(f)  Unless otherwise agreed by the lessor and
the lessee, a delegation of performance does not relieve the transferor as
against the other party of any duty to perform or of any liability for default.



(g)  In a consumer lease, to prohibit the
transfer of an interest of a party under the lease contract or to make a
transfer an event of default, the language must be specific, by a writing, and
conspicuous. [L 1991, c 40, pt of §1; am L 2000, c 241, §17]