September 2010
When Is a Lease of Personal Property a ‘True Lease’?By Alan M. Christenfeld and Barbara M. Goodstein
Just because a document is labeled a lease may not make it so under commercial law. One of the more heavily contested issues under the Uniform Commercial Code is whether an agreement transferring use and possession of personal property from one party to another is actually a lease as opposed to a sale subject to a security agreement.
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