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Can you summarize NHRS 382-A:9-407?
UNIFORM COMMERCIAL CODE > Restrictions on Creation or Enforcement of Security Interest in Leasehold Interest or in Lessor's Residual Interest.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the restrictions on the creation or enforcement of security interests in leasehold interests or in the lessor’s residual interest. It states that a term in a lease agreement is generally ineffective if it prohibits, restricts, or requires consent for the assignment, transfer, creation, attachment, perfection, or enforcement of a security interest in a party’s interest under the lease contract or in the lessor’s residual interest in the goods. Additionally, a term that states the assignment, transfer, or creation of a security interest may give rise to default, breach, recoupment, claim, defense, termination, or remedy under the lease is also ineffective. However, certain terms may be effective if there is a violation of the term through the lessee’s transfer of possession or use of the goods or delegation of material performance. The creation, attachment, perfection, or enforcement of a security interest in the lessor’s interest or residual interest is not considered a material impairment unless it results in a delegation of material performance by the lessor.
Whom does it apply to?
Parties involved in lease agreements
What does it govern?
Restrictions on Creation or Enforcement of Security Interest in Leasehold Interest or in Lessor's Residual Interest
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire