interest in leasehold interest or in lessor's residual

interest

(1)__Except as otherwise provided in subsection (2), a term in a lease agreement is ineffective to the extent that it:

(a)__Prohibits, restricts or requires the consent of a party to the lease to the creation, attachment, perfection or enforcement of a security interest in an interest of a party under the lease contract or in the lessor's residual interest in the goods; or

(b)__Provides that the creation, attachment, perfection or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the lease.

(2)__Except as otherwise provided in section 2-1303, subsection (7), a term described in subsection (1), paragraph (b) is effective to the extent that there is:

(a)__A transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or

(b)__A delegation of a material performance of either party to the lease contract in violation of the term.

(3)__The creation, attachment, perfection or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the lessee's prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of section 2-1303, subsection (4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.

Official Comment

1. Source. Section 2-1303.

2. Restrictions on Assignment Generally Ineffective. Under subsection (a) [Maine cite subsection (1)] , as under former Section 2-1303, subsection (3), a term in a lease agreement which prohibits or restricts the creation of a security interest generally is ineffective. This reflects the general policy of Section 9-406(d) [Maine cite section 9-1406 (d)] and former Section 9-318(4). This section has been conformed in several