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Equipment Leases: Drafting & UCC Article 2A Issues

August 15, 2022 @ 12:00 pm - 1:00 pm

Many companies lease rather than buy computers and servers, company cars and other capital equipment.  These leases are government by UCC Article 2A, an intricate set of provisions governing their validity, treatment, and enforcement.  If the lease is not properly drafted to comply with the UCC, it risks being re-characterized as a sale or a security interest, which give rise to substantially adverse financial and tax consequences. This program will also provide you with a practical guide to reviewing equipment leases, including spotting red flags and avoiding re-characterization.

Handout Materials will be emailed to you prior to the seminar
$60.00
1.0 MCLE Credit Hour

Schedule:

  • Types of equipment leases – “true” leases, synthetic leases, “lease to own” arrangements, and more
  • Spotting red flags of financeable leases – and how to ensure UCC 2A compliance
  • Rights and obligations of the parties – manufacturer, lessor and lessee – and remedies for breach
  • Circumstances leading to re-characterization of a “true lease” as a sale or financing
  • Adverse financial, tax and practical ramifications of lease re-characterization

 Speaker:

Steven O. Weise, Proskauer Rose, LLP – Los Angeles