Secured Transactions: True and Disguised Leases Podcast

This podcast evaluates when a transaction described as a “lease” will be considered a sale with a retention of a security interest and covered by Article 9. In particular, it will describe the situations that suggest that a lease is a true lease and those in which the lease is actually a disguised sale. The primary UCC provision associated with this inquiry is § 1-203, which contains the general rules of the road with respect to disguised leases. At the conclusion of the podcast, you should be able to (1) describe transactions that are governed by Article 9 because a disguised sale is actually involved; and (2) describe transactions that are not governed by Article 9 when there is a true lease.