clear space clear space clear space white space
A
 r c h i v e s   o f   M a r y l a n d   O n l i n e
  Maryland State Archives | Index | Help | Search search for:
clear space
white space
Session Laws, 1999
Volume 796, Page 2099   View pdf image
 Jump to  
  << PREVIOUS  NEXT >>
clear space clear space clear space white space

(B) EXCEPT AS OTHERWISE PROVIDED IN § 2A-303(7) OF THIS ARTICLE, A
TERM DESCRIBED IN SUBSECTION (A)(2) IS EFFECTIVE TO THE EXTENT THAT THERE
IS:

(1) A TRANSFER BY THE LESSEE OF THE LESSEE'S RIGHT OF
POSSESSION OR USE OF THE GOODS IN VIOLATION OF THE TERM; OR

(2) A DELEGATION OF A MATERIAL PERFORMANCE OF EITHER PARTY TO
THE LEASE CONTRACT IN VIOLATION OF THE TERM.

(C) THE CREATION, ATTACHMENT, PERFECTION, OR ENFORCEMENT OF A
SECURITY INTEREST IN THE LESSOR'S INTEREST UNDER THE LEASE CONTRACT OR
THE LESSOR'S RESIDUAL INTEREST IN THE GOODS IS NOT A TRANSFER THAT
MATERIALLY IMPAIRS THE LESSEE'S PROSPECT OF OBTAINING RETURN
PERFORMANCE OR MATERIALLY CHANGES THE DUTY OF OR MATERIALLY
INCREASES THE BURDEN OR RISK IMPOSED ON THE LESSEE WITHIN THE PURVIEW
OF § 2A-303(4) OF THIS ARTICLE UNLESS, AND THEN ONLY TO THE EXTENT THAT,
ENFORCEMENT ACTUALLY RESULTS IN A DELEGATION OF MATERIAL PERFORMANCE
OF THE SELLER. EVEN IN THAT EVENT, THE CREATION, ATTACHMENT, PERFECTION,
AND ENFORCEMENT OF THE SECURITY INTEREST REMAIN EFFECTIVE.

9-408. RESTRICTIONS ON ASSIGNMENT OF PROMISSORY NOTES,
HEALTH-CARE-INSURANCE RECEIVABLES, AND CERTAIN GENERAL INTANGIBLES
INEFFECTIVE.

(A) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (B), A TERM IN A
PROMISSORY NOTE OR IN AN AGREEMENT BETWEEN AN ACCOUNT DEBTOR AND A
DEBTOR WHICH RELATES TO A HEALTH-CARE-INSURANCE RECEIVABLE OR A
GENERAL INTANGIBLE, INCLUDING A CONTRACT, PERMIT, LICENSE, OR FRANCHISE,
AND WHICH TERM PROHIBITS, RESTRICTS, OR REQUIRES THE CONSENT OF THE
PERSON OBLIGATED ON THE PROMISSORY NOTE OR THE ACCOUNT DEBTOR TO, THE
ASSIGNMENT OR TRANSFER OF, OR CREATION, ATTACHMENT, OR PERFECTION OF A
SECURITY INTEREST IN, THE PROMISSORY NOTE, HEALTH-CARE-INSURANCE
RECEIVABLE, OR GENERAL INTANGIBLE, IS INEFFECTIVE TO THE EXTENT THAT THE
TERM:

(1) WOULD IMPAIR THE CREATION, ATTACHMENT, OR PERFECTION OF A
SECURITY INTEREST; OR

(2) PROVIDES THAT THE CREATION, ATTACHMENT, OR PERFECTION OF
THE SECURITY INTEREST MAY GIVE RISE TO A DEFAULT, BREACH, RIGHT OF
RECOUPMENT, CLAIM, DEFENSE, TERMINATION, RIGHT OF TERMINATION, OR
REMEDY UNDER THE PROMISSORY NOTE, HEALTH-CARE-INSURANCE RECEIVABLE,
OR GENERAL INTANGIBLE.

(B) SUBSECTION (A) APPLIES TO A SECURITY INTEREST IN A PAYMENT
INTANGIBLE OR PROMISSORY NOTE ONLY IF THE SECURITY INTEREST ARISES OUT
OF A SALE OF THE PAYMENT INTANGIBLE OR PROMISSORY NOTE.

(C) A RULE OF LAW, STATUTE, OR REGULATION, WHICH PROHIBITS,
RESTRICTS, OR REQUIRES THE CONSENT OF A GOVERNMENT, GOVERNMENTAL BODY

 

clear space
clear space
white space

Please view image to verify text. To report an error, please contact us.
Session Laws, 1999
Volume 796, Page 2099   View pdf image
 Jump to  
  << PREVIOUS  NEXT >>


This web site is presented for reference purposes under the doctrine of fair use. When this material is used, in whole or in part, proper citation and credit must be attributed to the Maryland State Archives. PLEASE NOTE: The site may contain material from other sources which may be under copyright. Rights assessment, and full originating source citation, is the responsibility of the user.


Tell Us What You Think About the Maryland State Archives Website!



An Archives of Maryland electronic publication.
For information contact msa.helpdesk@maryland.gov.

©Copyright  October 11, 2023
Maryland State Archives