Okla. Stat. tit. 12A, § 12A-2A-103

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 232

DEFINITIONS AND INDEX OF DEFINITIONS

(1) In this article unless the context otherwise requires:

(a) "Buyer in the 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 the

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 acquiring 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 Forty-five Thousand

Dollars ($45,000.00).

(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:

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 233

(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
e 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 of this title). The term

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 234

includes future goods, specially manufactured goods,

and the unborn young of animals. The term does not

include information, the money in which the price is

to be paid, investment securities under Article 8 of

the Uniform Commercial Code, minerals or the like,

including oil and gas, before extraction, or choses in

action.

(i) "Hybrid lease" means a single transaction involving a

lease of goods and:

(i) the provision of services;

(ii) a sale of other goods; or

(iii) a sale, lease, or license of property other than

goods.

(j) "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.

(k) "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 or license of information is

not a lease. Unless the context clearly indicates

otherwise, the term includes a sublease.

(l) "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 of usage of

trade or course of performance as provided in this

article. Unless the context clearly indicates

otherwise, the term includes a sublease agreement.

(m) "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.

(n) "Leasehold interest" means the interest of the lessor

or the lessee under a lease contract.

(o) "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.

(p) "Lessee in the 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

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 235

interest of a third party in the goods leases in the

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 acquiring 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.

(q) "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.

(r) "Lessor's residual interest" means the lessor's

interest in the goods after expiration, termination,

or cancellation of the lease contract.
or as security for or in

total or partial satisfaction of a money debt.

(q) "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.

(r) "Lessor's residual interest" means the lessor's

interest in the goods after expiration, termination,

or cancellation of the lease contract.

(s) "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.

(t) "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.

(u) "Merchant lessee" means a lessee that is a merchant

with respect to goods of the kind subject to the

lease.

(v) "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.

(w) "Purchase" includes taking by sale, lease, mortgage,

security interest, pledge, gift, or any other

voluntary transaction creating an interest in goods.

(x) "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.

(y) "Supplier" means a person from whom a lessor buys or

leases goods to be leased under a finance lease.

(z) "Supply contract" means a contract under which a

lessor buys or leases goods to be leased.

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 236

(aa) "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". Subsection (1) of Section 2A-310 of this

title.

"Construction mortgage". Paragraph (d) of subsection (1)

of Section 2A-309 of this title.

"Encumbrance". Paragraph (e) of subsection (1) of Section

2A-309 of this title.

"Fixtures". Paragraph (a) of subsection (1) of Section 2A-

309 of this title.

"Fixture filing". Paragraph (b) of subsection (1) of

Section 2A-309 of this title.

"Purchase money lease". Paragraph (c) of subsection (1) of

Section 2A-309 of this title.

(3) The following definitions in other articles apply to this

article:

"Account". Paragraph (2) of subsection (a) of Section 1-9-

102 of this title.

"Between merchants". Subsection (3) of Section 2-104 of

this title.

"Buyer". Paragraph (a) of subsection (1) of Section 2-103

of this title.

"Chattel paper". Paragraph (11) of subsection (a) of

Section 1-9-102 of this title.

"Consumer goods". Paragraph (23) of subsection (a) of

Section 1-9-102 of this title.

"Document". Paragraph (30) of subsection (a) of Section 1-

9-102 of this title.

"Entrusting". Paragraph (3) of Section 2-403 of this

title.

"General intangible". Paragraph (42) of subsection (a) of

Section 1-9-102 of this title.

"Instrument". Paragraph (47) of subsection (a) of Section

1-9-102 of this title.

"Merchant". Subsection (1) of Section 2-104 of this title.

"Mortgage". Paragraph (55) of subsection (a) of Section 1-

9-102 of this title.

"Pursuant to commitment". Paragraph (69) of subsection (a)

of Section 1-9-102 of this title.

"Receipt". Subsection (c) of paragraph (1) of Section 2-

103 of this title.

"Sale". Paragraph (1) of Section 2-106 of this title.

"Sale on approval". Section 2-326 of this title.

"Sale or return". Section 2-326 of this title.

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 237
is title.

"Pursuant to commitment". Paragraph (69) of subsection (a)

of Section 1-9-102 of this title.

"Receipt". Subsection (c) of paragraph (1) of Section 2-

103 of this title.

"Sale". Paragraph (1) of Section 2-106 of this title.

"Sale on approval". Section 2-326 of this title.

"Sale or return". Section 2-326 of this title.

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 237

"Seller". Subparagraph (c) of paragraph (1) of Section 2-

103 of this title.

(4) In addition, Article 1 of this title, contains general

definitions and principles of construction and interpretation

applicable throughout this article.