Texas Business & Commerce Code

§ 2A.407 — IRREVOCABLE PROMISES: FINANCE LEASES

BC § 2A.407Title 1. UNIFORM COMMERCIAL CODE · Ch. 2A. LEASES · Art. D. PERFORMANCE OF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED

Statute text

View on source

(a)In the case of a finance lease that is not a consumer lease, a term in the lease agreement that provides that the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods is enforceable.

(b)A promise that has become irrevocable and independent under Subsection (a):

(1)is effective and enforceable between the parties, and by or against third parties including assignees of the parties; and

(2)is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.

Legislative history

Added by Acts 1993, 73rd Leg., ch. 570, Sec. 1, eff. Sept. 1, 1993.