ORS Chapter 72a

Chapter 72A — Leases

 

2009 EDITION

 

 

LEASES

 

COMMERCIALTRANSACTIONS

 

GENERALPROVISIONS

 

72A.1010  Shorttitle

 

72A.1020  Scope

 

72A.1030  Definitionsand index of definitions

 

72A.1040  Leasessubject to other statutes

 

72A.1050  Territorialapplication of act to goods covered by certificate of title

 

72A.1060  Limitationon power of parties to consumer lease to choose applicable law and judicialforum

 

72A.1070  Waiveror renunciation of claim or right after default

 

72A.1080  Unconscionability

 

72A.1090  Optionto accelerate at will

 

72A.1095  Subordinationby agreement

 

FORMATIONAND CONSTRUCTION OF LEASE CONTRACT

 

72A.2010  Statuteof frauds

 

72A.2020  Finalwritten expression; parol or extrinsic evidence

 

72A.2030  Sealsinoperative

 

72A.2040  Formationin general

 

72A.2050  Firmoffers

 

72A.2060  Offerand acceptance in formation of lease contract

 

72A.2080  Modification,rescission and waiver

 

72A.2090  Lesseeunder finance lease as beneficiary of supply contract

 

72A.2100  Expresswarranties

 

72A.2110  Warrantiesagainst interference and against infringement; lessee’s obligation againstinfringement

 

72A.2120  Impliedwarranty of merchantability

 

72A.2130  Impliedwarranty of fitness for particular purpose

 

72A.2140  Exclusionor modification of warranties

 

72A.2150  Cumulationand conflict of warranties express or implied

 

72A.2160  Third-partybeneficiaries of express and implied warranties

 

72A.2170  Identification

 

72A.2180  Insuranceand proceeds

 

72A.2190  Riskof loss

 

72A.2200  Effectof default on risk of loss

 

72A.2210  Casualtyto identified goods

 

EFFECTOF LEASE CONTRACT

 

72A.3010  Enforceabilityof lease contract

 

72A.3020  Titleto and possession of goods

 

72A.3030  Alienabilityof party’s interest under lease contract or of lessor’s residual interest ingoods; delegation of performance; transfer of rights

 

72A.3040  Subsequentlease of goods by lessor

 

72A.3050  Saleor sublease of goods by lessee

 

72A.3060  Priorityof certain liens arising by operation of law

 

72A.3070  Priorityof liens arising by attachment or levy on goods; priority of certain securityinterests in goods

 

72A.3080  Specialrights of creditors

 

72A.3090  Lessor’sand lessee’s rights when goods become fixtures

 

72A.3095  Fixturefiling recorded and indexed as mortgage

 

72A.3100  Lessor’sand lessee’s rights when goods become accessions

 

PERFORMANCEOF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED

 

72A.4010  Insecurity;adequate assurance of performance

 

72A.4020  Anticipatoryrepudiation

 

72A.4030  Retractionof anticipatory repudiation

 

72A.4040  Substitutedperformance

 

72A.4050  Excusedperformance

 

72A.4060  Procedureon excused performance

 

72A.4070  Irrevocablepromises; finance leases

 

DEFAULT

 

72A.5010  Default;procedure

 

72A.5020  Noticeafter default

 

72A.5030  Modificationor impairment of rights and remedies

 

72A.5040  Liquidationof damages

 

72A.5050  Cancellationand termination and effect of cancellation, termination, rescission or fraud onrights and remedies

 

72A.5060  Statuteof limitations

 

72A.5070  Proofof market rent; time and place

 

72A.5080  Lessee’sremedies

 

72A.5090  Lessee’srights on improper delivery; rightful rejection

 

72A.5100  Installmentlease contracts; rejection and default

 

72A.5110  Merchantlessee’s duties as to rightfully rejected goods

 

72A.5120  Lessee’sduties as to rightfully rejected goods

 

72A.5130  Cureby lessor of improper tender or delivery; replacement

 

72A.5140  Waiverof lessee’s objections

 

72A.5150  Acceptanceof goods

 

72A.5160  Effectof acceptance of goods; notice of default; burden of establishing default afteracceptance; notice of claim or litigation to person answerable

 

72A.5170  Revocationof acceptance of goods

 

72A.5180  Cover;substitute goods

 

72A.5190  Lessee’sdamages for nondelivery, repudiation, default and breach of warranty in regardto accepted goods

 

72A.5200  Lessee’sincidental and consequential damages

 

72A.5210  Lessee’sright to specific performance or replevin

 

72A.5220  Lessee’sright to goods on lessor’s insolvency

 

72A.5230  Lessor’sremedies

 

72A.5240  Lessor’sright to identify goods to lease contract

 

72A.5250  Lessor’sright to possession of goods

 

72A.5260  Lessor’sstoppage of delivery in transit or otherwise

 

72A.5270  Lessor’srights to dispose of goods

 

72A.5280  Lessor’sdamages for default

 

72A.5290  Lessor’saction for the rent

 

72A.5295  Lessor’srecovery for loss of or damage to residual interest in goods

 

72A.5300  Lessor’sincidental damages

 

72A.5310  Standingto sue third parties for injury to goods

 

GENERALPROVISIONS

 

      72A.1010Short title.This chapter may be cited as the Uniform Commercial Code–Leases. [1989 c.676 §1;1995 c.79 §21]

 

      72A.1020Scope.This chapter applies to any transaction, regardless of form, that creates alease. [1989 c.676 §2]

 

      72A.1030Definitions and index of definitions. (1) As used in this chapter, unless thecontext otherwise requires:

      (a)“Buyer in ordinary course of business” means a person who in good faith andwithout knowledge that the sale to the person is in violation of the ownershiprights or security interest or leasehold interest of a third party in the goodsbuys in ordinary course from a person in the business of selling goods of thatkind but does not include a pawnbroker. “Buying” may be for cash or by exchangeof other property or on secured or unsecured credit and includes acquiringgoods or documents of title under a preexisting contract for sale but does notinclude a transfer in bulk or as security for or in total or partialsatisfaction of a money debt.

      (b)“Cancellation” occurs when either party puts an end to the lease contract fordefault by the other party.

      (c)“Commercial unit” means such a unit of goods as by commercial usage is a singlewhole for purposes of lease and division of which materially impairs itscharacter or value on the market or in use. A “commercial unit” may be a singlearticle, as a machine, or a set of articles, as a suite of furniture or a lineof machinery, or a quantity, as a gross or carload, or any other unit treatedin use or in the relevant market as a single whole.

      (d)“Conforming goods” or “performance under a lease contract” means goods orperformance that are in accordance with the obligations under the leasecontract.

      (e)“Consumer lease” means a lease that a lessor regularly engaged in the businessof leasing or selling makes to a lessee who is an individual and who takesunder the lease primarily for a personal, family or household purpose, if thetotal payments to be made under the lease contract, excluding payments foroptions to renew or buy, do not exceed $25,000.

      (f)“Fault” means wrongful act, omission, breach or default.

      (g)“Finance lease” means a lease in which the lessor does not select, manufactureor supply the goods, the lessor acquires the goods or the right to possessionand use of the goods in connection with the lease, and either:

      (A)The lessee receives a copy of the contract evidencing the lessor’s purchase ofthe goods on or before signing the lease contract;

      (B)The lessee’s approval of the contract evidencing the lessor’s purchase of thegoods is a condition to effectiveness of the lease contract;

      (C)The lessor informs the lessee in writing of the identity of the supplier unlessthe lessee has selected the supplier and directed the lessor to purchase thegoods from the supplier;

      (D)The lessor informs the lessee in writing that the lessee may have rights underthe contract evidencing the lessor’s purchase of the goods and the lessoradvises the lessee in writing to contact the supplier for a description of anysuch rights; or

      (E)The lease contract discloses all warranties and other rights provided to thelessee by the lessor and supplier in connection with the lease contract andinforms the lessee that there are no warranties or other rights provided to thelessee by the lessor and supplier other than those disclosed in the lease contract.

      (h)“Goods” means all things that are movable at the time of identification to thelease contract, or are fixtures as provided in ORS 72A.3090, but “goods” doesnot include money, documents, instruments, accounts, chattel paper, generalintangibles or minerals or the like, including oil and gas, before extraction. “Goods”also includes the unborn young of animals.

      (i)“Installment lease contract” means a lease contract that authorizes or requiresthe delivery of goods in separate lots to be separately accepted, even thoughthe lease contract contains a clause “each delivery is a separate lease” or itsequivalent.

      (j)“Lease” means a transfer of the right to possession and use of goods for a termin retur