Can you summarize MNST 336.2A-303?

Short Summary

This section of the Minnesota Statutes, specifically under the Uniform Commercial Code, governs the alienability of a party’s interest under a lease contract or the lessor’s residual interest in goods, as well as the delegation of performance and transfer of rights. It outlines the provisions related to the transfer of interests and the consequences of such transfers in lease agreements. The section specifies that a provision in a lease agreement prohibiting the transfer of interests or making it an event of default gives rise to certain rights and remedies. However, it also states that certain provisions prohibiting the transfer of rights to damages or making it an event of default are not enforceable. The section further explains the rights and remedies available in case of default or prohibited transfers. It also clarifies that a transfer of the lease or rights under the lease constitutes a delegation of duties by the transferor to the transferee, and acceptance by the transferee implies a promise to perform those duties. The section emphasizes that a delegation of performance does not relieve the transferor of any duty to perform or liability for default unless otherwise agreed. Additionally, it specifies the requirements for prohibiting transfers in consumer leases. Overall, this section provides guidance on the alienability of interests, delegation of performance, and transfer of rights in lease agreements.

Whom does it apply to?

Parties involved in lease agreements and transfers of rights

What does it govern?

Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights

What are exemptions?

No exemptions are mentioned.

What are the Penalties?

No penalties are mentioned.

Jurisdiction

Minnesota

Source

MNST 336.2A-303 [https://reggi.cloud.regology.com/regulations/US-MNST/US-MNST_T_324_C_336_S_2A-303]

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