Sec. 407. (1) In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods.
(2) A promise that has become irrevocable and independent under subsection (1):
(a) is effective and enforceable between the parties, and by or against third parties including assignees of the parties; and
(b) is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.
(3) This section does not affect the validity under any other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's acceptance of the goods.
As added by P.L.189-1991, SEC.3.
Structure Indiana Code
Article 1. Uniform Commercial Code
26-1-2.1-103. Definitions and Index of Definitions
26-1-2.1-104. Leases Subject to Other Statutes
26-1-2.1-105. Territorial Application of Article to Goods Covered by Certificate of Title
26-1-2.1-107. Waiver or Renunciation of Claim or Right After Default
26-1-2.1-108. Unconscionability
26-1-2.1-109. Option to Accelerate at Will
26-1-2.1-201. Statute of Frauds
26-1-2.1-202. Final Written Expression; Parol or Extrinsic Evidence
26-1-2.1-203. Seals Inoperative
26-1-2.1-204. Formation in General
26-1-2.1-206. Offer and Acceptance in Formation of Lease Contract
26-1-2.1-208. Modification, Rescission, and Waiver
26-1-2.1-209. Lessee Under Finance Lease as Beneficiary of Supply Contract
26-1-2.1-210. Express Warranties
26-1-2.1-212. Implied Warranty of Merchantability
26-1-2.1-213. Implied Warranty of Fitness for Particular Purpose
26-1-2.1-214. Exclusion or Modification of Warranties
26-1-2.1-215. Cumulation and Conflict of Warranties Express or Implied
26-1-2.1-216. Third-Party Beneficiaries of Express and Implied Warranties
26-1-2.1-218. Insurance and Proceeds
26-1-2.1-220. Effect of Default on Risk of Loss
26-1-2.1-221. Casualty to Identified Goods
26-1-2.1-301. Enforceability of Lease Contract
26-1-2.1-302. Title to and Possession of Goods
26-1-2.1-304. Subsequent Lease of Goods by Lessor
26-1-2.1-305. Sale or Sublease of Goods by Lessee
26-1-2.1-306. Priority of Certain Liens Arising by Operation of Law
26-1-2.1-307. Priority of Liens Related to Lease Contract
26-1-2.1-308. Special Rights of Creditors
26-1-2.1-309. Lessor's and Lessee's Rights When Goods Become Fixtures
26-1-2.1-310. Lessor's and Lessee's Rights When Goods Become Accessions
26-1-2.1-311. Subordination by Agreement; Persons Entitled to Priority
26-1-2.1-401. Insecurity; Adequate Assurance of Performance
26-1-2.1-402. Anticipatory Repudiation
26-1-2.1-403. Retraction of Anticipatory Repudiation
26-1-2.1-404. Substituted Performance
26-1-2.1-405. Excused Performance
26-1-2.1-406. Procedure on Excused Performance
26-1-2.1-407. Irrevocable Promises; Finance Leases
26-1-2.1-501. Default; Procedure
26-1-2.1-502. Notice After Default
26-1-2.1-503. Modification or Impairment of Rights and Remedies
26-1-2.1-504. Liquidation of Damages
26-1-2.1-506. Statute of Limitations
26-1-2.1-507. Proof of Market Rent; Time and Place
26-1-2.1-508. Lessee's Remedies
26-1-2.1-509. Lessee's Rights on Improper Delivery; Rightful Rejection
26-1-2.1-510. Installment Lease Contracts; Rejection and Default
26-1-2.1-511. Merchant Lessee's Duties as to Rightfully Rejected Goods
26-1-2.1-512. Lessee's Duties as to Rightfully Rejected Goods
26-1-2.1-513. Cure by Lessor of Improper Tender or Delivery; Replacement
26-1-2.1-514. Waiver of Lessee's Objections
26-1-2.1-515. Acceptance of Goods
26-1-2.1-516. Effect of Acceptance of Goods; Notice of Default; Burden of Establishing
26-1-2.1-517. Revocation of Acceptance of Goods
26-1-2.1-518. Cover; Substitute Goods
26-1-2.1-520. Lessee's Incidental and Consequential Damages
26-1-2.1-521. Lessee's Right to Specific Performance or Replevin
26-1-2.1-522. Lessee's Right to Goods on Lessor's Insolvency
26-1-2.1-523. Lessor's Remedies
26-1-2.1-524. Lessor's Right to Identify Goods to Lease Contract
26-1-2.1-525. Lessor's Right to Possession of Goods
26-1-2.1-526. Lessor's Stoppage of Delivery
26-1-2.1-527. Lessor's Rights to Dispose of Goods
26-1-2.1-528. Lessor's Damages for Nonacceptance or Repudiation
26-1-2.1-529. Lessor's Action for the Rent
26-1-2.1-530. Lessor's Incidental Damages
26-1-2.1-531. Standing to Sue Third Parties for Injury to Goods
26-1-2.1-532. Recovery by Lessor for Loss of or Damage to Residual Interest