Sec. 102. (1) IC 26-1-2.1 applies to any transaction, regardless of form, that creates a lease and, in the case of a hybrid lease, it applies to the extent provided in subsection (2).

     (2) In a hybrid lease, the following apply:

Terms Used In Indiana Code 26-1-2.1-102

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(a) If the lease of goods aspects do not predominate:

(i) only the provisions of this chapter that relate primarily to the lease of goods aspects of the transaction apply, and the provisions that relate primarily to the transaction as a whole do not apply;

(ii) section 209 of this chapter applies if the lease is a finance lease; and

(iii) section 407 of this chapter applies to the promises of the lessee in a finance lease to the extent the promises are consideration for the right to possession and use of the leased goods.

(b) If the lease of goods aspects predominate, this chapter applies to the transaction, but does not preclude the application in appropriate circumstances of other law to aspects of the lease that do not relate to the lease of goods.

As added by P.L.189-1991, SEC.3. Amended by P.L.199-2023, SEC.10.

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