Leases

摘要

No state has adopted the Uniform Certificate of Title Act ("UCOTA") or the proposed 2003 revisions to Uniform Commercial Code ("U.C.C.") Article 2A. There was no state legislative activity on either of these model state laws in 2008.rnTrue Lease vs. Disguised Sale with Retained Security InterestrnUnder the U.C.C., a lease may, in certain circumstances, be re-characterized as a secured transaction (either a secured sale or a secured loan, depending upon the circumstances). Among the many ramifications of such a re-characterization is that the transaction is removed from Article 2A and is subject instead to Article 9 and, possibly also, to Article 2. There are also important implications for third parties, such as creditors and trustees in bankruptcy.