§14A-2-407. Security in sales or leases.
241 words·~1 min read·
/ok/title-14a-consumer-credit-code/14a-2-407A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)With respect to a consumer credit sale, a seller may take a security interest in the property sold. In addition, a seller may take a security interest in goods upon which services are performed or in which goods sold are installed or to which they are annexed, or in land to which the goods are affixed or which is maintained, repaired or improved as a result of the sale of the goods or services, if in the case of a security interest in land the debt secured is One Thousand Dollars ($1,000.00) or more, or, in the case of a security interest in goods the debt secured is Two Hundred Dollars ($200.00) or more. Except as provided with respect to
cross-collateral (Section 2-408), a seller may not otherwise take a security interest in property of the buyer to secure the debt arising from a consumer credit sale.
(2)With respect to a consumer lease, a lessor may not take a security interest in property of the lessee to secure the debt arising from the lease.
(3)A security interest taken in violation of this section is void.
(4)"Security interest" as used in this section means a security interest arising by agreement of the parties and does not include a lien arising by operation of law. Added by Laws 1969, c. 352, § 2-407, eff. July 1, 1969. Amended by Laws 1982, c. 335, § 28, operative June 1, 1982.