70A-2a-103 - Definitions -- Index of definitions.
70A-2a-103. Definitions -- Index of definitions.
(1) In this chapter, unless the context otherwise requires:
(a) "Buyer in ordinary course of business" means a person, who in good faith and withoutknowledge that the sale to him is in violation of the ownership rights or security interest orleasehold interest of a third party in the goods, buys in ordinary course from a person in thebusiness of selling goods of that kind, but does not include a pawnbroker. "Buying" may be forcash or by exchange of other property or on secured or unsecured credit and includes acquiringgoods or documents of title under a preexisting contract for sale, but does not include a transferin bulk, or as security for, or in total or partial satisfaction of a money debt.
(b) "Cancellation" occurs when either party puts an end to the lease contract for defaultby the other party.
(c) "Commercial unit" means a unit of goods which by commercial usage is a singlewhole for purposes of lease, and the division of which materially impairs its character or value onthe market or in use. A commercial unit may be a single article, such as a machine, or a set ofarticles, such as a suite of furniture or a line of machinery, or a quantity, such as a gross orcarload, or any other unit treated in 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 lease contract.
(e) "Consumer lease" means a lease that a lessor, regularly engaged in the business ofleasing or selling, makes to a lessee, who is an individual and who takes under the lease primarilyfor a personal, family, or household purpose.
(f) "Fault" means wrongful act, omission, breach, or default.
(g) "Finance lease" means a lease in which:
(i) the lessor does not select, manufacture, or supply the goods;
(ii) the lessor acquires the goods or the right to possession and use of the goods inconnection with the lease; and
(iii) one of the following occurs:
(A) the lessee receives a copy of the contract by which the lessor acquired the goods orthe right to possession and use of the goods before signing the lease contract;
(B) the lessee's approval of the contract by which the lessor acquired the goods or theright to possession and use of the goods is a condition to effectiveness of the lease contract;
(C) the lessee, before signing the lease contract, receives an accurate and completestatement designating the promises and warranties, and any disclaimers of warranties,limitations, or modifications of remedies, or liquidated damages, including those of a third party,such as the manufacturer of the goods, provided to the lessor by the person supplying the goodsin connection with or as part of the contract by which the lessor acquired the goods or the right topossession and use of the goods; or
(D) if the lease is not a consumer lease, the lessor, before the lessee signs the leasecontract, informs the lessee in writing:
(I) of the identity of the person supplying the goods to the lessor, unless the lessee hasselected that person and directed the lessor to acquire the goods or the right to possession and useof the goods from that person;
(II) that the lessee is entitled under this chapter to the promises and warranties, includingthose of any third party, provided to the lessor by the person supplying the goods in connectionwith or as part of the contract by which the lessor acquired the goods or the right to possession
and use of the goods; and
(III) that the lessee may communicate with the person supplying the goods to the lessorand receive an accurate and complete statement of those promises and warranties, including anydisclaimers and limitations of them or of remedies.
(h) "Goods" means all things that are movable at the time of identification to the leasecontract, or are fixtures. The term does not include money, documents, instruments, accounts,chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. The term also includes the unborn young of animals.
(i) "Installment lease contract" means a lease contract that authorizes or requires thedelivery of goods in separate lots to be separately accepted, even though the lease contractcontains a clause stating "each delivery is a separate lease" or its equivalent.
(j) "Lease" means a transfer of the right to possession and use of goods for a term, inreturn for consideration. Unless the context clearly indicates otherwise, the term includes asublease. But a sale, including a sale on approval or a sale or return, or retention or creation of asecurity interest is not a lease.
(k) "Lease agreement" with respect to the lease, means the bargain of the lessor and thelessee in fact as found in their language or by implication from other circumstances includingcourse of dealing or usage of trade or course of performance as provided in this chapter. Unlessthe context clearly indicates otherwise, the term includes a sublease agreement.
(l) "Lease contract" means the total legal obligation that results from the lease agreementas affected by this chapter and any other applicable rules of law. Unless the context clearlyindicates otherwise, the term includes a sublease contract.
(m) "Leasehold interest" means the interest of the lessor or the lessee under a leasecontract.
(n) "Lessee" means a person who acquires the right to possession and use of goods undera lease. Unless the context clearly indicates otherwise, the term includes a sublessee.
(o) "Lessee in ordinary course of business" means a person who in good faith andwithout knowledge that the lease to him is in violation of the ownership rights, security interest,or leasehold interest of a third party in the goods, leases in ordinary course from a person in thebusiness of selling or leasing goods of that kind, but does not include a pawnbroker. "Leasing"may be for cash or by exchange of other property, or on secured or unsecured credit, and includesacquiring goods or documents of title under a preexisting lease contract. "Leasing" does notinclude a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
(p) "Lessor" means a person who transfers the right to possession and use of goods undera lease. Unless the context clearly indicates otherwise, the term includes a sublessor.
(q) "Lessor's residual interest" means the lessor's interest in the goods after expiration,termination, or cancellation of the lease contract.
(r) "Lien" means a charge against or interest in goods to secure payment of a debt orperformance of an obligation, but the term does not include a security interest.
(s) "Lot" means a parcel or single article that is the subject matter of a separate lease ordelivery, whether or not it is sufficient to perform the lease contract.
(t) "Merchant lessee" means a lessee that is a merchant with respect to goods of the kindsubject to the lease.
(u) "Present value" means the amount as of a date certain of one or more sums payable inthe future, discounted to the date certain. The discount is determined by the interest rate
specified by the parties if the rate was not manifestly unreasonable at the time the transaction wasentered into; otherwise, the discount is determined by a commercially reasonable rate that takesinto account the facts and circumstances of each case at the time the transaction was entered into.
(v) "Purchase" includes taking by sale, lease, mortgage, security interest, pledge, gift, orany other voluntary transaction creating an interest in goods.
(w) "Sublease" means a lease of goods, the right to possession and use of which wasacquired by the lessor as a lessee under an existing lease.
(x) "Supplier" means a person from whom a lessor buys or leases goods to be leasedunder a finance lease.
(y) "Supply contract" means a contract under which a lessor buys or leases goods to beleased.
(z) "Termination" occurs when either party, pursuant to a power created by agreement orlaw, puts an end to the lease contract otherwise than for default.
(2) Other definitions applying to this chapter and the sections in which they appear are:
(a) "Accessions," Section 70A-2a-310.
(b) "Construction mortgage," Section 70A-2a-309.
(c) "Encumbrance," Section 70A-2a-309.
(d) "Fixtures," Section 70A-2a-309.
(e) "Fixture filing," Section 70A-2a-309.
(f) "Purchase money lease," Section 70A-2a-309.
(3) The following definitions in other chapters apply to this chapter:
(a) "Account," Subsection 70A-9a-102(2).
(b) "Between merchants," Section 70A-2-104.
(c) "Buyer," Section 70A-2-103.
(d) "Chattel paper," Subsection 70A-9a-102(11).
(e) "Consumer goods," Subsection 70A-9a-102(23).
(f) "Document," Subsection 70A-9a-102(30).
(g) "Entrusting," Section 70A-2-403.
(h) "General intangible," Subsection 70A-9a-102(42).
(i) "Good faith," Section 70A-2-103;
(j) "Instrument," Subsection 70A-9a-102(46).
(k) "Merchant," Section 70A-2-104.
(l) "Mortgage," Subsection 70A-9a-102(54).
(m) "Pursuant to commitment," Subsection 70A-9a-102(67).
(n) "Receipt," Section 70A-2-103.
(o) "Sale," Section 70A-2-106.
(p) "Sale on approval," Section 70A-2-326.
(q) "Sale or return," Section 70A-2-326.
(r) "Seller," Section 70A-2-103.
(4) In addition, Title 70A, Chapter 1a, Uniform Commercial Code - General Provisions,contains general definitions and principles of construction and interpretation applicablethroughout this chapter.
Amended by Chapter 272, 2007 General Session