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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