Ohio Code § 1309.407
Ohio Code § 1309.407. Reproduced from the official Ohio Revised Code, with a citation summary, verification link, and related provisions.
§ 1309.407.
(A) Except as otherwise provided in division (B) of this section, a term in a lease agreement
is not effective 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) Except as otherwise provided in division (G) of section 1310.31 of the Revised Code , a term in a lease agreement described in division (A)(2) of this section 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 scope of division (D) of section 1310.31 of the Revised Code unless, and then only to the extent that, enforcement actually results in a delegation
of material performance of the lessor.
Source: official Ohio text · Last verified 2026-08-27
At a glance
- Citation: Ohio Revised Code § 1309.407
- Jurisdiction: Ohio
- Code: Ohio Revised Code
- Text: transcribed from the official source (verify below)
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Statute text is transcribed from the official Ohio Revised Code. Confirm it against the primary source before relying on it:
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Common questions
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What subject does Ohio Revised Code § 1309.407 address?
It addresses the rule set out in the section text. Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.
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