Section 2-A-103. Definitions and Index of Definitions

(1) In this Article 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 who takes under the lease
             primarily for personal, family, or household purposes.
         (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: (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 any 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 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 2-A-309), but  the  term  does  not  include  money,
             documents,  instruments,  accounts,  chattel  paper,  general
             intangibles, or minerals or the like, including oil and  gas,
             before  extraction.   The term also includes the unborn young
             of animals.
         (i) "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.
         (j) "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 is not a  lease.
             Unless  the  context  clearly  indicates  otherwise, the term
             includes a sublease.
         (k) "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 or usage of trade or course of performance
             as provided in  this  Article.  Unless  the  context  clearly
             indicates otherwise, the term includes a sublease agreement.
         (l) "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.
         (m) "Leasehold  interest" means the interest of the lessor or the
             lessee under a lease contract.
         (n) "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.
         (o) "Lessee in 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 interest of a third party in the goods leases in
             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  receiving  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.
         (p) "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.

         (q) "Lessor's residual interest" means the lessor's  interest  in
             the  goods  after expiration, termination, or cancellation of
             the lease contract.
         (r) "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.
         (s) "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.
         (t) "Merchant  lessee"  means  a  lessee  that is a merchant with
             respect to goods of the kind subject to the lease.
         (u) "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.
         (v) "Purchase" includes taking by sale, lease, mortgage, security
             interest, pledge, gift, or any  other  voluntary  transaction
             creating an interest in goods.
         (w) "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.
         (x) "Supplier" means a person from whom a lessor buys  or  leases
             goods to be leased under a finance lease.
         (y) "Supply  contract" means a contract under which a lessor buys
             or leases goods to be leased.
         (z) "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". Section 2-A-310(1).
    "Construction mortgage". Section 2-A-309(1)(d).
    "Encumbrance". Section 2-A-309(1)(e).
    "Fixtures". Section 2-A-309(1)(a).
    "Fixture filing". Section 2-A-309(1)(b).
    "Purchase money lease". Section 2-A-309(1)(c).
    (3) The following definitions in other articles apply to this Article:
                 "Account".                 Section 9--102(a)(2).
                 "Between merchants".       Section 2--104(3).
                 "Buyer".                   Section 2--103(1)(a).
                 "Chattel paper".           Section 9--102(a)(11).
                 "Consumer goods".          Section 9--102(a)(23).
                 "Document".                Section 9--102(a)(30).
                 "Entrusting".              Section 2--403(3).
                 "General intangible".      Section 9--102(a)(42).
                 "Good faith".              Section 2--103(1)(b).
                 "Instrument".              Section 9--102(a)(47).
                 "Merchant".                Section 2--104(1).
                 "Mortgage".                Section 9--102(a)(55).
                 "Pursuant to commitment".  Section 9--102(a)(68).
                 "Receipt".                 Section 2--103(1)(c).
                 "Sale".                    Section 2--106(1).
                 "Sale on approval".        Section 2--326.
                 "Sale or return".          Section 2--326.
                 "Seller".                  Section 2--103(1)(d).
    (4) In addition, Article 1 contains general definitions and principles
  of construction and interpretation applicable throughout this Article.