§ 8.2A-303. Alienability of party's interest under lease contract or oflessor's residual interest in goods; delegation of performance; transfer ofrights.
(1) As used in this section, "creation of a security interest" includes thesale of a lease contract that is subject to Title 8.9A, Secured Transactions,by reason of subdivision (a) (3) of § 8.9A-109.
(2) Except as provided in subsection (3) of this section and § 8.9A-407, aprovision in a lease agreement which (i) prohibits the voluntary orinvoluntary transfer, including a transfer by sale, sublease, creation orenforcement of a security interest, or attachment, levy, or other judicialprocess, of an interest of a party under the lease contract or of thelessor's residual interest in the goods, or (ii) makes such a transfer anevent of default, gives rise to the rights and remedies provided insubsection (4) of this section, but a transfer that is prohibited or is anevent of default under the lease agreement is otherwise effective.
(3) A provision in a lease agreement which (i) prohibits a transfer of aright to damages for default with respect to the whole lease contract or of aright to payment arising out of the transferor's due performance of thetransferor's entire obligation, or (ii) makes such a transfer an event ofdefault, is not enforceable, and such a transfer is not a transfer thatmaterially impairs the prospect of obtaining return performance by,materially changes the duty of, or materially increases the burden or riskimposed on, the other party to the lease contract within the purview ofsubsection (4) of this section.
(4) Subject to subsection (3) of this section and § 8.9A-407:
(a) If a transfer is made which is made an event of default under a leaseagreement, the party to the lease contract not making the transfer, unlessthat party waives the default or otherwise agrees, has the rights andremedies described in subsection (2) of § 8.2A-501;
(b) Subdivision (a) of this subsection is not applicable and if a transfer ismade that (i) is prohibited under a lease agreement or (ii) materiallyimpairs the prospect of obtaining return performance by, materially changesthe duty of, or materially increases the burden or risk imposed on, the otherparty to the lease contract, unless the party not making the transfer agreesat any time to the transfer in the lease contract or otherwise, then, exceptas limited by contract, (i) the transferor is liable to the party not makingthe transfer for damages caused by the transfer to the extent that thedamages could not reasonably be prevented by the party not making thetransfer and (ii) a court having jurisdiction may grant other appropriaterelief, including cancellation of the lease contract or an injunction againstthe transfer.
(5) A transfer of "the lease" or of "all my rights under the lease," or atransfer in similar general terms, is a transfer of rights and, unless thelanguage or the circumstances, as in a transfer for security, indicate thecontrary, the transfer is a delegation of duties by the transfer to thetransferee. Acceptance by the transferee constitutes a promise by thetransferee to perform those duties. The promise is enforceable by either thetransfer or the other party to the lease contract.
(6) Unless otherwise agreed by the lessor and the lessee, a delegation ofperformance does not relieve the transferor as against the other party of anyduty to perform or of any liability for default.
(7) In a consumer lease, to prohibit the transfer of an interest of a partyunder the lease contract or to make a transfer an event of default, thelanguage shall be specific, by a writing, and conspicuous.
§ 8.2A-303. Alienability of party's interest under lease contract or oflessor's residual interest in goods; delegation of performance; transfer ofrights.
(1) As used in this section, "creation of a security interest" includes thesale of a lease contract that is subject to Title 8.9A, Secured Transactions,by reason of subdivision (a) (3) of § 8.9A-109.
(2) Except as provided in subsection (3) of this section and § 8.9A-407, aprovision in a lease agreement which (i) prohibits the voluntary orinvoluntary transfer, including a transfer by sale, sublease, creation orenforcement of a security interest, or attachment, levy, or other judicialprocess, of an interest of a party under the lease contract or of thelessor's residual interest in the goods, or (ii) makes such a transfer anevent of default, gives rise to the rights and remedies provided insubsection (4) of this section, but a transfer that is prohibited or is anevent of default under the lease agreement is otherwise effective.
(3) A provision in a lease agreement which (i) prohibits a transfer of aright to damages for default with respect to the whole lease contract or of aright to payment arising out of the transferor's due performance of thetransferor's entire obligation, or (ii) makes such a transfer an event ofdefault, is not enforceable, and such a transfer is not a transfer thatmaterially impairs the prospect of obtaining return performance by,materially changes the duty of, or materially increases the burden or riskimposed on, the other party to the lease contract within the purview ofsubsection (4) of this section.
(4) Subject to subsection (3) of this section and § 8.9A-407:
(a) If a transfer is made which is made an event of default under a leaseagreement, the party to the lease contract not making the transfer, unlessthat party waives the default or otherwise agrees, has the rights andremedies described in subsection (2) of § 8.2A-501;
(b) Subdivision (a) of this subsection is not applicable and if a transfer ismade that (i) is prohibited under a lease agreement or (ii) materiallyimpairs the prospect of obtaining return performance by, materially changesthe duty of, or materially increases the burden or risk imposed on, the otherparty to the lease contract, unless the party not making the transfer agreesat any time to the transfer in the lease contract or otherwise, then, exceptas limited by contract, (i) the transferor is liable to the party not makingthe transfer for damages caused by the transfer to the extent that thedamages could not reasonably be prevented by the party not making thetransfer and (ii) a court having jurisdiction may grant other appropriaterelief, including cancellation of the lease contract or an injunction againstthe transfer.
(5) A transfer of "the lease" or of "all my rights under the lease," or atransfer in similar general terms, is a transfer of rights and, unless thelanguage or the circumstances, as in a transfer for security, indicate thecontrary, the transfer is a delegation of duties by the transfer to thetransferee. Acceptance by the transferee constitutes a promise by thetransferee to perform those duties. The promise is enforceable by either thetransfer or the other party to the lease contract.
(6) Unless otherwise agreed by the lessor and the lessee, a delegation ofperformance does not relieve the transferor as against the other party of anyduty to perform or of any liability for default.
(7) In a consumer lease, to prohibit the transfer of an interest of a partyunder the lease contract or to make a transfer an event of default, thelanguage shall be specific, by a writing, and conspicuous.
§ 8.2A-303. Alienability of party's interest under lease contract or oflessor's residual interest in goods; delegation of performance; transfer ofrights.
(1) As used in this section, "creation of a security interest" includes thesale of a lease contract that is subject to Title 8.9A, Secured Transactions,by reason of subdivision (a) (3) of § 8.9A-109.
(2) Except as provided in subsection (3) of this section and § 8.9A-407, aprovision in a lease agreement which (i) prohibits the voluntary orinvoluntary transfer, including a transfer by sale, sublease, creation orenforcement of a security interest, or attachment, levy, or other judicialprocess, of an interest of a party under the lease contract or of thelessor's residual interest in the goods, or (ii) makes such a transfer anevent of default, gives rise to the rights and remedies provided insubsection (4) of this section, but a transfer that is prohibited or is anevent of default under the lease agreement is otherwise effective.
(3) A provision in a lease agreement which (i) prohibits a transfer of aright to damages for default with respect to the whole lease contract or of aright to payment arising out of the transferor's due performance of thetransferor's entire obligation, or (ii) makes such a transfer an event ofdefault, is not enforceable, and such a transfer is not a transfer thatmaterially impairs the prospect of obtaining return performance by,materially changes the duty of, or materially increases the burden or riskimposed on, the other party to the lease contract within the purview ofsubsection (4) of this section.
(4) Subject to subsection (3) of this section and § 8.9A-407:
(a) If a transfer is made which is made an event of default under a leaseagreement, the party to the lease contract not making the transfer, unlessthat party waives the default or otherwise agrees, has the rights andremedies described in subsection (2) of § 8.2A-501;
(b) Subdivision (a) of this subsection is not applicable and if a transfer ismade that (i) is prohibited under a lease agreement or (ii) materiallyimpairs the prospect of obtaining return performance by, materially changesthe duty of, or materially increases the burden or risk imposed on, the otherparty to the lease contract, unless the party not making the transfer agreesat any time to the transfer in the lease contract or otherwise, then, exceptas limited by contract, (i) the transferor is liable to the party not makingthe transfer for damages caused by the transfer to the extent that thedamages could not reasonably be prevented by the party not making thetransfer and (ii) a court having jurisdiction may grant other appropriaterelief, including cancellation of the lease contract or an injunction againstthe transfer.
(5) A transfer of "the lease" or of "all my rights under the lease," or atransfer in similar general terms, is a transfer of rights and, unless thelanguage or the circumstances, as in a transfer for security, indicate thecontrary, the transfer is a delegation of duties by the transfer to thetransferee. Acceptance by the transferee constitutes a promise by thetransferee to perform those duties. The promise is enforceable by either thetransfer or the other party to the lease contract.
(6) Unless otherwise agreed by the lessor and the lessee, a delegation ofperformance does not relieve the transferor as against the other party of anyduty to perform or of any liability for default.
(7) In a consumer lease, to prohibit the transfer of an interest of a partyunder the lease contract or to make a transfer an event of default, thelanguage shall be specific, by a writing, and conspicuous.
