S.B. 147

VETOES

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

TITLE 2A. LEASES

SUBTITLE 1. GENERAL PROVISIONS

2A-101. SHORT TITLE

THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE MARYLAND
UNIFORM COMMERCIAL CODE - LEASES.

2A-102. SCOPE

THIS TITLE APPLIES TO ANY TRANSACTION, REGARDLESS OF FORM, THAT
CREATES A LEASE.

2A-103. DEFINITIONS AND INDEX OF DEFINITIONS

(1) IN THIS TITLE 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 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 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 TAKES UNDER THE LEASE PRIMARILY FOR A PERSONAL,
FAMILY, OR HOUSEHOLD PURPOSE.

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