2003 Nebraska State Statutes
All statutes referencing Pawnbrokers
Contact: Your County Clerk
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Chapter 69. Personal Property.
Pawnbroker, defined.
69-201. Any person engaged in the business of lending
money upon chattel property for security and requiring possession
of the property so mortgaged on condition of returning the same
upon payment of a stipulated amount of money, or purchasing
property on condition of selling it back at a stipulated price,
is declared to be a pawnbroker for the purpose of sections 69-201
to 69-210.
Permit required; fees; application, contents; issuance; bond.
69-202. Every person engaged in the business of
pawnbroking shall pay to the city or village treasurer for a
permit to carry on business the sum of one hundred dollars per
year or fifty dollars for every six months, in metropolitan
cities, but in all other cities or villages the sum of fifty
dollars per year or the sum of twenty-five dollars for every six
months. Such permit shall be obtained by filing an application
with, and having such application approved by, the governing body
of the city or village or an officer or agency designated by such
governing body for such purpose.
The application shall contain the following
information:
(1) The name and address of the owner and the manager
of the business and, if the applicant is an individual, the
applicant's social security number;
(2) If the applicant is a corporation, a copy of the
articles of incorporation and the names of its officers and
shareholders;
(3) The exact location where the business is to be
conducted; and
(4) The exact location where any goods, wares, and
merchandise may be stored or kept if other than the business
location.
When reviewing applications for a permit required by
this section, the governing body or delegated officer or agency
shall take into consideration the criminal record, if any, of the
applicant and, if the applicant is a corporation, of its officers
and shareholders. No permit shall be issued to any applicant who
has been convicted of a felony and, if the applicant is a
corporation, no permit shall be issued when any officer or
shareholder has been convicted of a felony.
Such person shall also give bond to the city or village
in which he, she, or it is to do business, in the sum of five
thousand dollars with surety to be approved by the mayor or its
chief executive officer, conditioned for the faithful performance
by the principal, of each and all of the trusts imposed by law or
by usage attached to pawnbrokers.
No permit fee shall be exacted under this section in
municipalities which impose a permit fee for the pawnbroking
business by ordinance.
Records required; inspection; stolen property; procedures.
69-204. All persons who shall be engaged in the
business of pawnbrokers, dealers in secondhand goods, or junk
dealers, shall keep a ledger and complete a card, to be furnished
by the city or village, on which shall be legibly written in ink,
at the time of any loan or purchase, the following information:
(1) The date of the loan or purchase;
(2) The name of the person from whom the property is
purchased or received, his or her signature, date of birth, and
driver's license number or other means of identification;
(3) A full and accurate description of the property
purchased or received, including any manufacturer's identifying
insignia or serial number;
(4) The time when any loan becomes due;
(5) The amount of purchase money, or the amount lent
and any loan charges, for each item; and
(6) The identification and signature of the clerk or
agent for the business who handled the transaction.
Entries shall not in any manner be erased, obliterated,
or defaced. The person receiving a loan or selling property
shall receive at no charge a plain written or printed ticket for
the loan, or a plain written or printed receipt for the articles
sold, containing a copy of the entries required by this section.
Every pawnbroker, or employee of a pawnbroker, shall
admit to the pawnbroker's premises at any reasonable time during
normal business hours any law enforcement officer for the purpose
of examining any property and records on the premises, and shall
allow such officer to place restrictions on the disposition of
any property for which a reasonable belief exists that it has
been stolen. Any person claiming an ownership interest in
property received by a pawnbroker for which a reasonable belief
exists that such property has been stolen may recover such
property as provided by sections 25-1093 to 25-10,110.
Reports to police; when required.
69-205. It shall be the duty of every such pawnbroker,
dealer in secondhand goods, or junk dealer, every day except
Sunday before the hour of 12 noon, to deliver to the police
department of the municipality where said business is located, or
if the municipality does not have a police department, to the
sheriff's office, a legible and correct copy of each card or
ledger entry required by section 69-204 for the transactions of
the previous day. Transactions occurring on Saturday shall be
reported on the following Monday. No card shall be required for
goods purchased from manufacturers or wholesale dealers having an
established place of business, or goods purchased at open sale
from any bankrupt stock or from any other person doing business
and having an established place of business in the city or
village, but such goods must be accompanied by a bill of sale or
other evidence of open and legitimate purchase, and must be shown
to the mayor or any law enforcement officer when demanded.
Dealers in scrap metals, except gold and silver, shall not be
included in the provisions of this section.
Pawned or secondhand goods; restrictions on disposition; jewelry
defined.
69-206. No personal property received or purchased by
any pawnbroker, dealer in secondhand goods, or junk dealer, shall
be sold or permitted to be taken from the place of business of
such person for fourteen days or, in the case of secondhand
jewelry, for five days, after the copy of the card or ledger
entry required to be delivered to the police department or
sheriff's office shall have been delivered as required by section
69-205. Secondhand jewelry shall not be destroyed, damaged, or
in any manner defaced for a period of seventy-two hours after the
time of its purchase or receipt. For purposes of this section,
jewelry shall mean any ornament which is intended to be worn on
or about the body and which is made in whole or in part of any
precious metal, including gold, silver, platinum, copper, brass,
or pewter.
All property accepted as collateral security or
purchased by a pawnbroker shall be kept segregated from all other
property in a separate area for a period of forty-eight hours
after its receipt or purchase, except that valuable articles may
be kept in a safe with other property if grouped according to the
day of purchase or receipt. Notwithstanding the provisions of
this section, a pawnbroker may return any property to the person
pawning the same after the expiration of such forty-eight-hour
period or when permitted by the chief of police, sheriff, or
other authorized law enforcement officer.
Pawnbroker; limitation on sale of goods.
69-209. It shall be unlawful for any pawnbroker to
sell any goods purchased or received as described in section
69-201, during the period of four months from the date of
purchasing or receiving such goods.
Pawnbrokers; customer fingerprint required; restrictions on
property accepted.
69-210. (1) All persons who shall be engaged in the
business of pawnbroker shall, in addition to the requirements of
section 69-204, obtain and keep a single legible fingerprint of
each person pawning, pledging, mortgaging, or selling any goods
or articles. The fingerprint shall be taken from the right index
finger or, if the right index finger is missing, from the left
index finger. Each pawnbroker shall display a notice to
customers, in a prominent location, stating that such pawnbroker
is required by state law to fingerprint every person pawning or
selling an item.
(2) No pawnbroker shall accept as collateral security
or purchase any property:
(a) From any person who is under eighteen years of age,
or who appears to be under the influence of alcohol, narcotic
drug, stimulant, or depressant, or who appears to be mentally
incompetent; or
(b) On which the serial numbers or other identifying
insignia have been destroyed, removed, altered, covered, or
defaced.
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Chapter 14. Cities of the Metropolitan Class (i.e. Omaha)
City council; powers; occupation and license taxes; wheel tax;
conditions; limitations.
14-109. The council shall have power to tax for
revenue, license, and regulate pawnbrokers, peddlers,
auctioneers, brokers, hawkers, commission merchants, showmen,
jugglers, innkeepers, liquor dealers, toll bridges, ferries,
insurance, telegraph and express companies and vendors of
patents. Such tax may include both a tax for revenue and
license. If the applicant is an individual, an application for a
license shall include the applicant's social security number.
The city council shall have power to raise revenue by levying and
collecting a tax on any occupation or business within the limits
of the city and regulate the same by ordinance. All such taxes
shall be uniform in respect to the class upon which they are
imposed. All scientific and literary lectures and entertainments
shall be exempt from taxation, as well as concerts and all other
musical entertainments given exclusively by the citizens of the
city. It shall be the duty of the city clerk to deliver to the
city treasurer the certified copy of the ordinance levying such
tax, and the city clerk shall append thereto a warrant requiring
the city treasurer to collect such tax. The city council shall
also have power to require any person, firm, or corporation
owning or using any vehicle in a city of the metropolitan class
annually to register such vehicle in such manner as may be
provided and to require such person to pay an annual registration
fee therefor and to require the payment of registration fees upon
the change of ownership of such vehicle. All registration fees
which may be thus provided for shall be credited to a separate
fund of the city, thereby created, to be used exclusively for the
repairing of streets in such city. No registration fee shall be
required where a vehicle is used but temporarily in such city for
a period of not more than one week.
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Chapter 17. Cities of the Second Class and Villages. (towns under 5,000 pop.)
Peddlers; pawnbrokers; entertainers; licensing and regulation.
17-134. A second-class city shall have power to
license, tax, suppress, regulate and prohibit hawkers, peddlers,
pawnbrokers, keepers of ordinaries, theatrical and other
exhibitions, shows and other amusements, and to revoke such
licenses at pleasure.
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Chapter 29. Criminal Procedure.
Criminal identification and information; Nebraska State Patrol;
duties.
29-210. The Nebraska State Patrol is hereby authorized
(1) to keep a complete record of all reports filed of all
personal property stolen, lost, found, pledged or pawned, in any
city or county of this state; (2) to provide for the installation
of a proper system and file, and cause to be filed therein cards
containing an outline of the methods of operation employed by
criminals; (3) to use any system of identification it deems
advisable, or that may be adopted in any of the penal
institutions of the state; (4) to keep a record consisting of
duplicates of measurements, processes, operations, plates,
photographs, measurements and descriptions of all persons
confined in penal institutions of this state; (5) to procure and
maintain, so far as practicable, plates, photographs,
descriptions and information concerning all persons who shall
hereafter be convicted of felony or imprisoned for violating the
military, naval or criminal laws of the United States, and of
well-known and habitual criminals from whatever source
procurable; (6) to furnish any criminal justice agency with any
information, material, records, or means of identification which
may properly be disseminated and that it may desire in the proper
administration of criminal justice; (7) to upgrade, when
feasible, the existing law enforcement communications network;
and (8) to establish and maintain an improved system or systems
by which relevant information may be collected, coordinated, and
made readily available to serve qualified persons or agencies
concerned with the administration of criminal justice.
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Uniform Commercial Code.
General definitions.
U1-201.
Subject to additional definitions contained in the
subsequent articles of the Uniform Commercial Code which are
applicable to specific articles or parts thereof, and unless the
context otherwise requires, in the code:
(1) "Action" in the sense of a judicial proceeding
includes recoupment, counterclaim, setoff, suit in equity, and
any other proceedings in which rights are determined.
(2) "Aggrieved party" means a party entitled to resort
to a remedy.
(3) "Agreement" means the bargain of the parties in
fact as found in their language or by implication from other
circumstances including course of dealing or usage of trade or
course of performance as provided in the code (sections 1-205 and
2-208). Whether an agreement has legal consequences is
determined by the provisions of the code, if applicable;
otherwise by the law of contracts (section 1-103). (Compare
"Contract".)
(4) "Bank" means any person engaged in the business of
banking.
(5) "Bearer" means the person in possession of an
instrument, document of title, or certificated security payable
to bearer or indorsed in blank.
(6) "Bill of lading" means a document evidencing the
receipt of goods for shipment issued by a person engaged in the
business of transporting or forwarding goods, and includes an
airbill. "Airbill" means a document serving for air
transportation as a bill of lading does for marine or rail
transportation, and includes an air consignment note or airway
bill.
(7) "Branch" includes a separately incorporated foreign
branch of a bank.
(8) "Burden of establishing" a fact means the burden of
persuading the triers of fact that the existence of the fact is
more probable than its nonexistence.
(9) "Buyer in ordinary course of business" means a
person that buys goods in good faith, without knowledge that the
sale violates the rights of another person in the goods, and in
the ordinary course from a person, other than a pawnbroker, in
the business of selling goods of that kind. A person buys goods
in the ordinary course if the sale to the person comports with
the usual or customary practices in the kind of business in which
the seller is engaged or with the seller's own usual or customary
practices. A person that sells oil, gas, or other minerals at
the wellhead or minehead is a person in the business of selling
goods of that kind. A buyer in ordinary course of business may
buy for cash, by exchange of other property, or on secured or
unsecured credit, and may acquire goods or documents of title
under a preexisting contract for sale. Only a buyer that takes
possession of the goods or has a right to recover the goods from
the seller under article 2 may be a buyer in ordinary course of
business. A person that acquires goods in a transfer in bulk or
as security for or in total or partial satisfaction of a money
debt is not a buyer in ordinary course of business.
(10) "Conspicuous": A term or clause is conspicuous
when it is so written that a reasonable person against whom it is
to operate ought to have noticed it. A printed in
capitals (as, NONNEGOTIABLE BILL OF LADING) is conspicuous.
Language in the body of a form is "conspicuous" if it is in
larger or other contrasting type or color. But in a telegram any
stated term is "conspicuous". Whether a term or clause is
"conspicuous" or not is for decision by the court.
(11) "Contract" means the total legal obligation which
results from the parties' agreement as affected by the code and
any other applicable rules of law. (Compare "Agreement".)
(12) "Creditor" includes a general creditor, a secured
creditor, a lien creditor, and any representative of creditors,
including an assignee for the benefit of creditors, a trustee in
bankruptcy, a receiver in equity, and a personal representative
or administrator of an insolvent debtor's or assignor's estate.
(13) "Defendant" includes a person in the position of
defendant in a cross-action or counterclaim.
(14) "Delivery" with respect to instruments, documents
of title, chattel paper, or certificated securities means
voluntary transfer of possession.
(15) "Document of title" includes bill of lading, dock
warrant, dock receipt, warehouse receipt, or order for the
delivery of goods, and also any other document which in the
regular course of business or financing is treated as adequately
evidencing that the person in possession of it is entitled to
receive, hold, and dispose of the document and the goods it
covers. To be a document of title a document must purport to be
issued by or addressed to a bailee and purport to cover goods in
the bailee's possession which are either identified or are
fungible portions of an identified mass.
(16) "Fault" means wrongful act, omission, or breach.
(17) "Fungible" with respect to goods or securities
means goods or securities of which any unit is, by nature or
usage of trade, the equivalent of any other like unit. Goods
which are not fungible shall be deemed fungible for the purposes
of the code to the extent that under a particular agreement or
document unlike units are treated as equivalents.
(18) "Genuine" means free of forgery or counterfeiting.
(19) "Good faith" means honesty in fact in the conduct
or transaction concerned.
(20) "Holder", with respect to a negotiable instrument,
means the person in possession if the instrument is payable to
bearer or, in the case of an instrument payable to an identified
person, if the identified person is in possession. "Holder" with
respect to a document of title means the person in possession if
the goods are deliverable to bearer or to the order of the person
in possession.
(21) To "honor" is to pay or to accept and pay, or
where a credit so engages to purchase or discount a draft
complying with the terms of the credit.
(22) "Insolvency proceedings" includes any assignment
for the benefit of creditors or other proceedings intended to
liquidate or rehabilitate the estate of the person involved.
(23) A person is "insolvent" who either has ceased to
pay his or her debts in the ordinary course of business or cannot
pay his or her debts as they become due or is insolvent within
the meaning of the federal bankruptcy law.
(24) "Money" means a medium of exchange authorized or
adopted by a domestic or foreign government and includes a
monetary unit of account established by an intergovernmental
organization or by agreement between two or more nations.
(25) A person has "notice" of a fact when:
(a) he or she has actual knowledge of it;
(b) he or she has received a notice or notification of
it; or
(c) from all the facts and circumstances known to him
or her at the time in question he or she has reason to know that
it exists.
A person "knows" or has "knowledge" of a fact when he
or she has actual knowledge of it. "Discover" or "learn" or a
word or phrase of similar import refers to knowledge rather than
to reason to know. The time and circumstances under which a
notice or notification may cease to be effective are not
determined by the code.
(26) A person "notifies" or "gives" a notice or
notification to another by taking such steps as may be reasonably
required to inform the other in ordinary course whether or not
such other actually comes to know of it. A person "receives" a
notice or notification when:
(a) it is duly delivered at the place of business
through which the contract was made or at any other place held
out by him or her as the place for receipt of such
communications;
(b) in the event notice or notification cannot be had
pursuant to paragraph (a), it is published at least once in a
legal newspaper published in or of general circulation in the
county where the transaction has its situs; or
(c) it comes to his or her attention.
(27) Notice, knowledge, or a notice or notification
received by an organization is effective for a particular
transaction from the time when it is brought to the attention of
the individual conducting that transaction, and in any event from
the time when it would have been brought to his or her attention
if the organization had exercised due diligence.
(28) "Organization" includes a corporation, government
or governmental subdivision or agency, business trust, estate,
trust, partnership, limited liability company, or association,
two or more persons having a joint or common interest, or any
other legal or commercial entity.
(29) "Party", as distinct from "third party", means a
person who has engaged in a transaction or made an agreement
within the code.
(30) "Person" includes an individual or an organization
(See section 1-102).
(31) "Presumption" or "presumed" means that the trier
of fact must find the existence of the fact presumed unless and
until evidence is introduced which would support a finding of its
nonexistence.
(32) "Purchase" includes taking by sale, discount,
negotiation, mortgage, pledge, lien, security interest, issue or
reissue, gift, or any other voluntary transaction creating an
interest in property.
(33) "Purchaser" means a person who takes by purchase.
(34) "Remedy" means any remedial right to which an
aggrieved party is entitled with or without resort to a tribunal.
(35) "Representative" includes an agent, an officer of
a corporation or association, a member of a limited liability
company, and a trustee, personal representative, or administrator
of an estate, or any other person empowered to act for another.
(36) "Rights" includes remedies.
(37) "Security interest" means an interest in personal
property or fixtures which secures payment or performance of an
obligation. The term also includes any interest of a consignor
and a buyer of accounts, chattel paper, a payment intangible, or
a promissory note in a transaction that is subject to article 9.
The special property interest of a buyer of goods on
identification of those goods to a contract for sale under
section 2-401 is not a "security interest", but a buyer may also
acquire a "security interest" by complying with article 9.
Except as otherwise provided in section 2-505, the right of a
seller or lessor of goods under article 2 or 2A to retain or
acquire possession of the goods is not a "security interest", but
a seller or lessor may also acquire a "security interest" by
complying with article 9. The retention or reservation of title
by a seller of goods notwithstanding shipment or delivery to the
buyer (section 2-401) is limited in effect to a reservation of a
"security interest".
Whether a transaction creates a lease or security
interest is determined by the facts of each case; however, a
transaction creates a security interest if the consideration the
lessee is to pay the lessor for the right to possession and use
of the goods is an obligation for the term of the lease not
subject to termination by the lessee, and
(a) the original term of the lease is equal to or
greater than the remaining economic life of the goods,
(b) the lessee is bound to renew the lease for the
remaining economic life of the goods or is bound to become the
owner of the goods,
(c) the lessee has an option to renew the lease for the
remaining economic life of the goods for no additional
consideration or nominal additional consideration upon compliance
with the lease agreement, or
(d) the lessee has an option to become the owner of the
goods for no additional consideration or nominal additional
consideration upon compliance with the lease agreement.
A transaction does not create a security interest
merely because it provides that
(a) the present value of the consideration the lessee
is obligated to pay the lessor for the right to possession and
use of the goods is substantially equal to or is greater than the
fair market value of the goods at the time the lease is entered
into,
(b) the lessee assumes risk of loss of the goods, or
agrees to pay taxes, insurance, filing, recording, or
registration fees, or service or maintenance costs with respect
to the goods,
(c) the lessee has an option to renew the lease or to
become the owner of the goods,
(d) the lessee has an option to renew the lease for a
fixed rent that is equal to or greater than the reasonably
predictable fair market rent for the use of the goods for the
term of the renewal at the time the option is to be performed, or
(e) the lessee has an option to become the owner of the
goods for a fixed price that is equal to or greater than the
reasonably predictable fair market value of the goods at the time
the option is to be performed.
For purposes of this subsection (37):
(x) Additional consideration is not nominal if (i) when
the option to renew the lease is granted to the lessee the rent
is stated to be the fair market rent for the use of the goods for
the term of the renewal determined at the time the option is to
be performed, or (ii) when the option to become the owner of the
goods is granted to the lessee the price is stated to be the fair
market value of the goods determined at the time the option is to
be performed. Additional consideration is nominal if it is less
than the lessee's reasonably predictable cost of performing under
the lease agreement if the option is not exercised;
(y) "Reasonably predictable" and "remaining economic
life of the goods" are to be determined with reference to the
facts and circumstances at the time the transaction is entered
into; and
(z) "Present value" means the amount as of a date
certain of one or more sums payable in the future, discounted to
the date certain. The discount is determined by the interest
rate specified by the parties if the rate is not manifestly
unreasonable at the time the transaction is entered into;
otherwise, the discount is determined by a commercially
reasonable rate that takes into account the facts and
circumstances of each case at the time the transaction was
entered into.
"Security interest" does not include a consumer rental
purchase agreement as defined in the Consumer Rental Purchase
Agreement Act.
(38) "Send" in connection with any writing or notice
means to deposit in the mail or deliver for transmission by any
other usual means of communication with postage or cost of
transmission provided for and properly addressed and in the case
of an instrument to an address specified thereon or otherwise
agreed, or if there be none to any address reasonable under the
circumstances. The receipt of any writing or notice within the
time at which it would have arrived if properly sent has the
effect of a proper sending.
(39) "Signed" includes any symbol executed or adopted
by a party with present intention to authenticate a writing.
(40) "Surety" includes guarantor.
(41) "Telegram" includes a message transmitted by
radio, teletype, cable, any mechanical method of transmission, or
the like.
(42) "Term" means that portion of an agreement which
relates to a particular matter.
(43) "Unauthorized" signature means one made without
actual, implied, or apparent authority and includes a forgery.
(44) "Value". Except as otherwise provided with
respect to negotiable instruments and bank collections (sections
3-303, 4-210, and 4-211) a person gives "value" for rights if he
or she acquires them:
(a) in return for a binding commitment to extend credit
or for the extension of immediately available credit whether or
not drawn upon and whether or not a chargeback is provided for in
the event of difficulties in collection;
(b) as security for or in total or partial satisfaction
of a preexisting claim;
(c) by accepting delivery pursuant to a preexisting
contract for purchase; or
(d) generally, in return for any consideration
sufficient to support a simple contract.
(45) "Warehouse receipt" means a receipt issued by a
person engaged in the business of storing goods for hire.
(46) "Written" or "writing" includes printing,
typewriting, or any other intentional reduction to tangible form.
Uniform Commercial Code.
Definitions and index of definitions.
LAW U2A-103.
(1) In this article unless the context otherwise
requires:
(a) "Buyer in ordinary course of business" means a
person who in good faith and without knowledge that the sale to
him or her is in violation of the ownership rights or security
interest or leasehold interest of a third party in the goods,
buys in ordinary course from a person in the business of selling
goods of that kind but does not include a pawnbroker. "Buying"
may be for cash or by exchange of other property or on secured or
unsecured credit and includes receiving goods or documents of
title under a preexisting contract for sale but does not include
a transfer in 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 default by the other party.
(c) "Commercial unit" means such a unit of goods as by
commercial usage is a single whole for purposes of lease and
division of which materially impairs its character or value on
the market or in use. A commercial unit may be a single article,
as a machine, or a set of articles, as a suite of furniture or a
line of machinery, or a quantity, as a gross or carload, 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 or performance 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 of leasing or selling makes to
a lessee who is an individual and who takes under the lease
primarily for a personal, family, or household purpose, if the
total payments to be made under the lease contract, excluding
payments for options to renew or buy, do not exceed twenty-five
thousand dollars.
(f) "Fault" means wrongful act, omission, breach, or
default.
(g) "Finance lease" means a lease with respect to
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 in connection 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 or the 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 the right 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 complete statement 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 goods
in connection with or as part of the contract by which the lessor
acquired the goods or the right to possession and use of the
goods; or
(D) if the lease is not a consumer lease, the lessor,
before the lessee signs the lease contract, informs the lessee in
writing (a) of the identity of the person supplying the goods to
the lessor, unless the lessee has selected that person and
directed the lessor to acquire the goods or the right to
possession and use of the goods from that person, (b) that the
lessee is entitled under this article to the promises and
warranties, including those of any third party, provided to the
lessor by the person supplying the goods in connection with or as
part of the contract by which the lessor acquired the goods or
the right to possession and use of the goods, and (c) that the
lessee may communicate with the person supplying the goods to the
lessor and receive an accurate and complete statement of those
promises and warranties, including any disclaimers and
limitations of them or of remedies.
(h) "Goods" means all things that are movable at the
time of identification to the lease contract, or are fixtures
(section 2A-309), but 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 the delivery of goods in separate
lots to be separately accepted, even though the lease contract
contains a clause "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 in return for consideration, but a
sale, including a sale on approval or a sale or return, or
retention or creation of a security interest is not a lease.
Unless the context clearly indicates otherwise, the term includes
a sublease.
(k) "Lease agreement" means the bargain, with respect
to the lease, of the lessor and the lessee in fact as found in
their language or by implication from other circumstances
including course of dealing or usage of trade or course of
performance as provided in this article. Unless the context
clearly indicates otherwise, the term includes a sublease
agreement.
(l) "Lease contract" means the total legal obligation
that results from the lease agreement as affected by this article
and any other applicable rules of law. Unless the context
clearly indicates otherwise, the term includes a sublease
contract.
(m) "Leasehold interest" means the interest of the
lessor or the lessee under a lease contract.
(n) "Lessee" means a person who acquires the right to
possession and use of goods under a 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 and without knowledge that the lease to
him or her is in violation of the ownership rights or security
interest or leasehold interest of a third party in the goods
leases in ordinary course from a person in the business 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 includes receiving
goods or documents of title under a preexisting lease contract
but does not include 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 under a 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 or performance of an obligation, but
the term does not include a security interest.
(s) "Lot" means a parcel or a single article that is
the subject matter of a separate lease or delivery, 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 kind subject to the lease.
(u) "Present value" means the amount as of a date
certain of one or more sums payable in the 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 was entered into;
otherwise, the discount is determined by a commercially
reasonable rate that takes into 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, or any other voluntary
transaction creating an interest in goods.
(w) "Sublease" means a lease of goods the right to
possession and use of which was acquired 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 leased under a finance lease.
(y) "Supply contract" means a contract under which a
lessor buys or leases goods to be leased.
(z) "Termination" occurs when either party pursuant to
a power created by agreement or law puts an end to the lease
contract otherwise than for default.
(2) Other definitions applying to this article and the
sections in which they appear are:
"Accessions". Section 2A-310(1).
"Construction mortgage". Section
2A-309(1)(d).
"Encumbrance". Section
2A-309(1)(e).
"Fixtures". Section
2A-309(1)(a).
"Fixture filing". Section
2A-309(1)(b).
"Purchase money lease". Section
2A-309(1)(c).
(3) The following definitions in other articles apply
to this article:
"Account". Section 9-102(a)(2).
"Between merchants". Section 2-104(3).
"Buyer". Section 2-103(1)(a).
"Chattel paper". Section
9-102(a)(11).
"Consumer goods". Section
9-102(a)(23).
"Document". Section
9-102(a)(30).
"Entrusting". Section 2-403(3).
"General intangible". Section
9-102(a)(42).
"Good faith". Section 2-103(1)(b).
"Instrument". Section
9-102(a)(47).
"Merchant". Section 2-104(1).
"Mortgage". Section
9-102(a)(55).
"Pursuant to commitment". Section
9-102(a)(68).
"Receipt". Section 2-103(1)(c).
"Sale". Section 2-106(1).
"Sale on approval". Section 2-326.
"Sale or return". Section 2-326.
"Seller". Section 2-103(1)(d).
(4) In addition, article 1 contains general definitions
and principles of construction and interpretation applicable
throughout this article.
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