N.Y. Uniform Commercial Code 2-A-407 – Irrevocable Promises: Finance Leases
Section 2-A-407. Irrevocable Promises: Finance Leases.
Terms Used In N.Y. Uniform Commercial Code 2-A-407
- Consumer lease: means a lease that a lessor regularly
engaged in the business of leasing or selling makes to a
lessee who is an individual and who takes under the lease
primarily for personal, family, or household purposes. See N.Y. Uniform Commercial Code 2-A-103 - Contract: A legal written agreement that becomes binding when signed.
- Goods: means all things that are movable at the time of
identification to the lease contract, or are fixtures
(Section 2-A-309), but the term does not include money,
documents, instruments, accounts, chattel paper, general
intangibles, or minerals or the like, including oil and gas,
before extraction. See N.Y. Uniform Commercial Code 2-A-103 - Lease: means a transfer of the right to possession and use
of goods for a term in return for consideration, but a sale,
including a sale on approval or a sale or return, or
retention or creation of a security interest is not a lease. See N.Y. Uniform Commercial Code 2-A-103 - 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
- Lease contract: means the total legal obligation that
results from the lease agreement as affected by this Article
and any other applicable rules of law. See N.Y. Uniform Commercial Code 2-A-103
(1) In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods.
(2) A promise that has become irrevocable and independent under subsection (1):
(a) is effective and enforceable between the parties, and by or
against third parties including assignees of the parties; and
(b) is not subject to cancellation, termination, modification,
repudiation, excuse, or substitution without the consent of
the party to whom the promise runs.
(3) This section does not affect the validity under any other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's acceptance of the goods.