§ 6A-9-407 Restrictions on creation orenforcement of security interest in leasehold interest or in lessor's residualinterest. – (a) Term restricting assignment generally ineffective. Except asotherwise provided in subsection (b), a term in a lease agreement isineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of a partyto the lease to the assignment or transfer of, or the creation, attachment,perfection, or enforcement of a security interest in, an interest of a partyunder the lease contract or in the lessor's residual interest in the goods; or
(2) Provides that the assignment or transfer or the creation,attachment, perfection, or enforcement of the security interest may give riseto a default, breach, right of recoupment, claim, defense, termination, rightof termination, or remedy under the lease.
(b) Effectiveness of certain terms. Except asotherwise provided in § 6A-2.1-303(7), a term described in subsection(a)(2) is effective to the extent that there is:
(1) A transfer by the lessee of the lessee's right ofpossession or use of the goods in violation of the term; or
(2) A delegation of a material performance of either party tothe lease contract in violation of the term.
(c) Security interest not material impairment. Thecreation, attachment, perfection, or enforcement of a security interest in thelessor's interest under the lease contract or the lessor's residual interest inthe goods is not a transfer that materially impairs the lessee's prospect ofobtaining return performance or materially changes the duty of or materiallyincreases the burden or risk imposed on the lessee within the purview of §6A-2.1-303(4) unless, and then only to the extent that, enforcement actuallyresults in a delegation of material performance of the lessor.
§ 6A-9-407 Restrictions on creation orenforcement of security interest in leasehold interest or in lessor's residualinterest. – (a) Term restricting assignment generally ineffective. Except asotherwise provided in subsection (b), a term in a lease agreement isineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of a partyto the lease to the assignment or transfer of, or the creation, attachment,perfection, or enforcement of a security interest in, an interest of a partyunder the lease contract or in the lessor's residual interest in the goods; or
(2) Provides that the assignment or transfer or the creation,attachment, perfection, or enforcement of the security interest may give riseto a default, breach, right of recoupment, claim, defense, termination, rightof termination, or remedy under the lease.
(b) Effectiveness of certain terms. Except asotherwise provided in § 6A-2.1-303(7), a term described in subsection(a)(2) is effective to the extent that there is:
(1) A transfer by the lessee of the lessee's right ofpossession or use of the goods in violation of the term; or
(2) A delegation of a material performance of either party tothe lease contract in violation of the term.
(c) Security interest not material impairment. Thecreation, attachment, perfection, or enforcement of a security interest in thelessor's interest under the lease contract or the lessor's residual interest inthe goods is not a transfer that materially impairs the lessee's prospect ofobtaining return performance or materially changes the duty of or materiallyincreases the burden or risk imposed on the lessee within the purview of §6A-2.1-303(4) unless, and then only to the extent that, enforcement actuallyresults in a delegation of material performance of the lessor.
§ 6A-9-407 Restrictions on creation orenforcement of security interest in leasehold interest or in lessor's residualinterest. – (a) Term restricting assignment generally ineffective. Except asotherwise provided in subsection (b), a term in a lease agreement isineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of a partyto the lease to the assignment or transfer of, or the creation, attachment,perfection, or enforcement of a security interest in, an interest of a partyunder the lease contract or in the lessor's residual interest in the goods; or
(2) Provides that the assignment or transfer or the creation,attachment, perfection, or enforcement of the security interest may give riseto a default, breach, right of recoupment, claim, defense, termination, rightof termination, or remedy under the lease.
(b) Effectiveness of certain terms. Except asotherwise provided in § 6A-2.1-303(7), a term described in subsection(a)(2) is effective to the extent that there is:
(1) A transfer by the lessee of the lessee's right ofpossession or use of the goods in violation of the term; or
(2) A delegation of a material performance of either party tothe lease contract in violation of the term.
(c) Security interest not material impairment. Thecreation, attachment, perfection, or enforcement of a security interest in thelessor's interest under the lease contract or the lessor's residual interest inthe goods is not a transfer that materially impairs the lessee's prospect ofobtaining return performance or materially changes the duty of or materiallyincreases the burden or risk imposed on the lessee within the purview of §6A-2.1-303(4) unless, and then only to the extent that, enforcement actuallyresults in a delegation of material performance of the lessor.
