Equipment Leases: Drafting UCC Article 2A Issues

course

COURSE INFO

  • Available Until 4/18/2021
  • Next Class Time 1:00 PM ET
  • Duration 60 min.
  • Format MP3 Download
  • Program Code 0118351


Course Price: $79.00
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COURSE DESCRIPTION

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Equipment leasing is increasingly commonplace as companies choose to lease rather than buy the computers and IT equipment, capital and office equipment, cars and other equipment essential to operating their businesses. Equipment leases have also become exceptionally complex over time, resembling financially engineered instruments as much as traditional leases. The leases must comply with UCC Article 2A or risk financially disadvantaging the lessor and/or the lessee. If a purported lease is re-characterized as a sale or a security interest, there may be substantial adverse financial and tax consequences. This program will also provide you with a practical guide to reviewing and drafting equipment leases, ensuring compliance with UCC Article 2A to mitigate the risk of re-characterization as a sale or a security interest, and underlying the rights and obligations of the parties to the lease.

  • Reviewing and drafting equipment leases to ensure UCC Article 2A compliance
  • Rights and obligations of the parties – manufacturer, lessor and lessee – and remedies for breach
  • Types of equipment leases – “true” leases, synthetic leases, “lease to own” arrangements, and more
  • Circumstances leading to re-characterization of a “true lease” as a sale or financing
  • Adverse financial, tax and practical ramifications of lease re-characterization
  • Spotting red flags of financeable leases – and how to ensure UCC 2A compliance

Speaker: Steven O. Weise is a partner in the Los Angeles office Proskauer Rose, LLP, where his practice encompasses all areas of commercial law. He has extensive experience in financings, particularly those secured by personal property. He also handles matters involving real property anti-deficiency laws, workouts, guarantees, sales of goods, letters of credit, commercial paper and checks, and investment securities. Mr. Weise formerly served as chair of the ABA Business Law Section. He has also served as a member of the Permanent Editorial Board of the UCC and as an Advisor to the UCC Code Article 9 Drafting Committee. Mr. Weise received his B.A. from Yale University and his J.D. from the University of California, Berkeley, Boalt Hall School of Law. (Original Broadcast Date: 4/28/18)