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Florida Statutes (Last Updated: April 21, 2021) |
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TITLE XXXIX. COMMERCIAL RELATIONS |
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CHAPTER 679. UNIFORM COMMERCIAL CODE: SECURED TRANSACTIONS |
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PART IV. RIGHTS OF THIRD PARTIES |
SECTION 679.4071. Restrictions on creation or enforcement of security interest in leasehold interest or in lessor’s residual interest.
Latest version.
- 1(1) 2Except as otherwise provided in subsection (2), a term in a lease agreement is ineffective to the extent that it:22(a) 23Prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or 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; or72(b) 73Provides that the assignment or transfer or 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.111(2) 112Except as otherwise provided in s. 118680.303(7), 119a term described in paragraph (1)(b) is effective to the extent that there is:133(a) 134A transfer by the lessee of the lessee’s right of possession or use of the goods in violation of the term; or156(b) 157A delegation of a material performance of either party to the lease contract in violation of the term.175(3) 176The 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 s. 238680.303(4) 239unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.
