Idaho State Statutes - Idaho Attorney Directory

RESTRICTIONS ON CREATION OR ENFORCEMENT OF SECURITY INTEREST IN
LEASEHOLD INTEREST OR IN LESSOR'S RESIDUAL INTEREST. (a) Except as otherwise
provided in subsection (b) of this section, a term in a lease agreement is
ineffective to the extent that it:
(1) 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
(2) 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 28-12-303(7), a term
described in subsection (a)(2) of this section is effective to the extent that
there is:
(1) A transfer by the lessee of the lessee's right of possession or use
of the goods in violation of the term; or
(2) 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 28-12-303(4) unless, and then only to the extent
that, enforcement actually results in a delegation of material performance of
the lessor.

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