(iii) 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

(iv) The lessee has an option to become the owner of the goods for no
additional consideration or nominal additional consideration upon compliance with
the lease agreement.

(b) A transaction does not create a security interest merely because it
provides that

(i) 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,

(ii) The lessee assumes risk of loss of the goods or agrees to pay
taxes, insurance, filing, recording, or registration fees, or service or maintenance
costs with respect to the goods,

(iii) The lessee has an option to renew the lease or to become the
owner of the goods,

(iv) 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

(v) 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.

(c) For purposes of this subsection (37):

(i) Additional consideration is not nominal if (i) when the option to
renew the lease is granted to the lessee the rent is stated to be the fair market rent for
the use of the goods for the term of the renewal determined at the time the option is
to be performed, or (ii) 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, 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;

(ii) "Reasonably predictable" and "remaining economic life of the
goods" are to be determined with reference to the facts and circumstances at the time
the transaction is entered into; and

(iii) "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 is not manifestly
unreasonable at the time the transaction is 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.