Lease – True lease
§3309. True leases. Except as specifically provided in this Chapter, true leases are subject to Title IX of Book III of the Civil Code entitled “Of Lease.”
§3306. Definitions. (26)(a) “True lease” means a lease entered into before January 1, 1990, under which:
(i) The lessee has no obligation to pay total compensation over the base lease term which is substantially equivalent to or in excess of the initial value of the leased property; or
(ii) The lessee does not have the option or obligation to become the owner of the leased property upon termination of the lease for no or nominal consideration.
(b) A true lease also means a lease entered into after January 1, 1990, that is not classified as a security interest as provided under R.S. 10:1-201(35).
(c) Consistent with R.S. 10:9-505, the filing of a financing statement by a lessor under a true lease shall not of itself result in such a lease being classified as a financed lease for purposes of this Chapter or otherwise.
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