Section 9--407. Restrictions on Creation or Enforcement of Security Interest in Leasehold Interest or in Lessor's Residual Interest  


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  • (a) Term  restricting  assignment  generally  ineffective.  Except  as
      otherwise  provided  in  subsection  (b), a term in a lease agreement is
      ineffective to the extent that it:
             (1) prohibits, restricts, or requires the consent of a  party  to
                 the  lease to the assignment or transfer of, or the creation,
                 attachment, perfection, or enforcement of a security interest
                 in, an interest of a party under the lease contract or in the
                 lessor's residual interest in the goods; or
             (2) provides that the assignment or  transfer  or  the  creation,
                 attachment,   perfection,  or  enforcement  of  the  security
                 interest may  give  rise  to  a  default,  breach,  right  of
                 recoupment,    claim,    defense,   termination,   right   of
                 termination, or remedy under the lease.
        (b) Effectiveness of certain terms. Except as  otherwise  provided  in