§ 34.1-9-407 — Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest

Wyoming § 34.1-9-407

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 9: SECURED TRANSACTIONS

Text

(a) Except as otherwise provided in subsection (b), a term
in a lease agreement is ineffective to the extent that it:
(i) Prohibits, 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; or
(ii) Provides 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.
(b) Except as otherwise provided in section
34.1-2A-303(g), a term described in paragraph (a)(ii) is
effective to the extent that there is:
(i) A transfer by the lessee of the lessee's right of
possession or use of the goods in violation of the term; or
(ii) A delegation of a material performance of either
party to the lease contract in violation of the term.
(c) The 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 section 34.1-2A-303(d) unless, and then
only to the extent that, enforcement actually results in a
delegation of material performance of the lessor.