(810 ILCS 5/2A-103) (from Ch. 26,
par. 2A-103)
Sec. 2A-103. Definitions
and index of definitions.
(1) In this Article unless the
context otherwise requires:
(a) "Buyer
in ordinary course of business" means a
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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 pre-existing
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.
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(b) "Cancellation" occurs
when either party puts an
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end to the lease contract for default
by the other party.
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(c) "Commercial
unit" means such a unit of goods as
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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.
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(d) "Conforming" goods
or performance under a lease
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contract means goods or performance
that are in accordance with the obligations under
the lease contract.
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(e) "Consumer
lease" means a lease that a lessor
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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 a personal, family, or household purpose, if
the total payments to be made under the lease contract,
excluding payments for options to renew or buy,
do not exceed $40,000.
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(f) "Fault" means
wrongful act, omission, breach, or
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(g) "Finance
lease" means a lease with respect to
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(i)
the lessor does not select, manufacture, or
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(ii)
the lessor acquires the goods or the right
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to possession and use of the goods in
connection with the lease; and
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(iii)
one of the following occurs:
(A)
the lessee receives a copy of the
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contract by which the lessor acquired
the goods or the right to possession and use of
the goods before signing the lease contract;
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(B)
the lessee's approval of the contract by
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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;
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(C)
the lessee, before signing the lease
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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 a 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
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(D)
if the lease is not a consumer lease,
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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.
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(h) "Goods" means
all things that are movable at the
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time of identification to the lease
contract, or are fixtures (Section 2A-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.
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(i) "Installment
lease contract" means a lease
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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.
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(j) "Lease" means
a transfer of the right to
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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.
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(k) "Lease
agreement" means the bargain, with
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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.
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(l) "Lease
contract" means the total legal
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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.
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(m) "Leasehold
interest" means the interest of the
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lessor or the lessee under a lease contract.
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(n) "Lessee" means
a person who acquires the right
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to possession and use of goods under
a lease. Unless the context clearly indicates otherwise,
the term includes a sublessee.
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(o) "Lessee
in ordinary course of business" means a
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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 pre-existing
lease contract but does not include a transfer
in bulk or as security for or in total or partial
satisfaction of a money debt.
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(p) "Lessor" means
a person who transfers the right
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to possession and use of goods under
a lease. Unless the context clearly indicates otherwise,
the term includes a sublessor.
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(q) "Lessor's
residual interest" means the lessor's
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interest in the goods after expiration,
termination, or cancellation of the lease contract.
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(r) "Lien" means
a charge against or interest in
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goods to secure payment of a debt or
performance of an obligation, but the term does
not include a security interest.
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(s) "Lot" means
a parcel or a single article that is
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the subject matter of a separate lease
or delivery, whether or not it is sufficient to
perform the lease contract.
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(t) "Merchant
lessee" means a lessee that is a
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merchant with respect to goods of the
kind subject to the lease.
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(u) "Present
value" means the amount as of a date
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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.
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(v) "Purchase" includes
taking by sale, lease,
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mortgage, security interest, pledge,
gift, or any other voluntary transaction creating
an interest in goods.
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(w) "Sublease" means
a lease of goods the right to
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possession and use of which was acquired
by the lessor as a lessee under an existing lease.
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(x) "Supplier" means
a person from whom a lessor
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buys or leases goods to be leased under
a finance lease.
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(y) "Supply
contract" means a contract under which a
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lessor buys or leases goods to be leased.
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(z) "Termination" occurs
when either party pursuant
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to a power created by agreement or law
puts an end to the lease contract otherwise than
for default.
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(2) Other definitions
applying to this Article and the Sections in which they
appear are:
"Accessions". Section
2A-310(1).
"Construction mortgage".
Section 2A-309(1)(d).
"Encumbrance". Section
2A-309(1)(e).
"Fixtures". Section 2A-309(1)(a).
"Fixture filing". Section
2A-309(1)(b).
"Purchase money lease".
Section 2A-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.
(Source: P.A. 91-893, eff. 7-1-01; 92-651,
eff. 7-11-02.)
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