(1) As used in this chapter, 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 the person 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 $25,000.
(f) “Fault” means wrongful act, omission, breach or default.
(g) “Finance lease” means a lease in which the lessor does not select, manufacture or supply the goods, the lessor acquires the goods or the right to possession and use of the goods in connection with the lease, and either:
(A) The lessee receives a copy of the contract evidencing the lessor’s purchase of the goods on or before signing the lease contract;
(B) The lessee’s approval of the contract evidencing the lessor’s purchase of the goods is a condition to effectiveness of the lease contract;
(C) The lessor informs the lessee in writing of the identity of the supplier unless the lessee has selected the supplier and directed the lessor to purchase the goods from the supplier;
(D) The lessor informs the lessee in writing that the lessee may have rights under the contract evidencing the lessor’s purchase of the goods and the lessor advises the lessee in writing to contact the supplier for a description of any such rights; or
(E) The lease contract discloses all warranties and other rights provided to the lessee by the lessor and supplier in connection with the lease contract and informs the lessee that there are no warranties or other rights provided to the lessee by the lessor and supplier other than those disclosed in the lease contract.
(h) “Goods” means all things that are movable at the time of identification to the lease contract, or are fixtures as provided in ORS 72A.3090, but “goods” does not include money, documents, instruments, accounts, chattel paper, general intangibles or minerals or the like, including oil and gas, before extraction. “Goods” 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, “lease” 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 the language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this chapter. Unless the context clearly indicates otherwise, “lease agreement” includes a sublease agreement.
(L) “Lease contract” means the total legal obligation that results from the lease agreement as affected by this chapter and any other applicable rules of law. Unless the context clearly indicates otherwise, “lease contract” 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, “lessee” includes a sublessee.
(o) “Lessee in ordinary course of business” means a person who in good faith and without knowledge that the lease to the person 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, “lessor” 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 “lien” 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 chapter and the sections in which they appear are:
(a) “Accessions” as defined in ORS 72A.3100.
(b) “Account” as defined in ORS 79.0102.
(c) “Between merchants” as defined in ORS 72.1040.
(d) “Buyer” as defined in ORS 72.1030.
(e) “Chattel paper” as defined in ORS 79.0102.
(f) “Construction mortgage” as defined in ORS 72A.3090.
(g) “Consumer goods” as defined in ORS 79.0102.
(h) “Document” as defined in ORS 79.0102.
(i) “Encumbrance” as defined in ORS 72A.3090.
(j) “Entrusting” as defined in ORS 72.4030.
(k) “Fixture filing” as defined in ORS 72A.3090.
(L) “Fixtures” as defined in ORS 72A.3090.
(m) “General intangible” as defined in ORS 79.0102.
(n) “Good faith” as defined in ORS 72.1030.
(o) “Instrument” as defined in ORS 79.0102.
(p) “Merchant” as defined in ORS 72.1040.
(q) “Mortgage” as defined in ORS 79.0102.
(r) “Purchase money lease” as defined in ORS 72A.3090.
(s) “Pursuant to commitment” as defined in ORS 79.0102.
(t) “Receipt” as defined in ORS 72.1030.
(u) “Sale” as defined in ORS 72.1060.
(v) “Sale on approval” as defined in ORS 72.3260.
(w) “Sale or return” as defined in ORS 72.3260.
(x) “Seller” as defined in ORS 72.1030.
(3) In addition, ORS chapter 71 contains general definitions and principles of construction and interpretation applicable throughout this chapter. [1989 c.676 §3; 1993 c.646 §1; 2001 c.445 §141]
Section: Previous 72A.1010 72A.1020 72A.1030 72A.1040 72A.1050 72A.1060 72A.1070 72A.1080 72A.1090 72A.1095 72A.2010 72A.2020 72A.2030 72A.2040 72A.2050 NextLast modified: August 7, 2008