Categorizing a transaction as a lease rather than a security interest:
A)has significant implications for the parties and for third parties.
B)has significant implications only for the parties to the transaction.
C)would mean the provisions of Article 9 of the UCC apply to the transaction.
D)Two of the above, (b) and (c).

Question

Quizplus · Accepted Answer

Categorizing a transaction as a lease rather than a security interest can have significant implications for the parties and third parties. It can affect issues such as ownership, taxation, and liability. Additionally, if the transaction is categorized as a lease, the provisions of Article 2A of the UCC will apply instead of Article 9, which can also impact the parties involved in the transaction.

Categorizing a Transaction as a Lease Rather Than a Security