Okla. Stat. tit. 12A, § 12A-1-203

Lease Distinguished from Security Interest.

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 179

(a) Whether a transaction in the form of a lease creates a

lease or security interest is determined by the facts of each case.

(b) A transaction creates a security interest if the

consideration that 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:

(1) the original term of the lease is equal to or greater

than the remaining economic life of the goods;

(2) 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;

(3) 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

(4) the lessee has an option to become the owner of the

goods for no additional consideration or for nominal

additional consideration upon compliance with the

lease agreement.

(c) A transaction in the form of a lease does not create a

security interest merely because:

(1) 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;

(2) the lessee assumes risk of loss of the goods;

(3) the lessee agrees to pay, with respect to the goods,

taxes, insurance, filing, recording, or registration

fees, or service or maintenance costs;

(4) the lessee has an option to renew the lease or to

become the owner of the goods;

(5) 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

(6) 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.

(d) 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. Additional consideration

is not nominal if:

(1) when the option to renew the lease is granted to the

lessee, the rent is stated to be the fair market rent

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 180

for the use of the goods for the term of the renewal

determined at the time the option is to be performed,

or

(2) 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.

(e) The "remaining economic life of the goods" and "reasonably

predictable" fair market rent, fair market value, or cost of

performing under the lease agreement must be determined with

reference to the facts and circumstances at the time the transaction

is entered into.