North Dakota Code 41-02.1-02 – (2A-102) Scope
1. This chapter 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.
Terms Used In North Dakota Code 41-02.1-02
- 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
2. In a hybrid lease:
a. If the lease-of-goods aspects do not predominate:
(1) Only the provisions of this chapter which 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; (2) Section 41-02.1-18 applies if the lease is a finance lease; and
(3) Section 41-02.1-48 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; and
b. If the lease-of-goods aspects predominate, this chapter applies to the transaction, but does not preclude application in appropriate circumstances of other law to aspects of the lease which do not relate to the lease of goods.