From I.T.C. to U.C.C.: Using Federal Tax Criteria to Ensure Lease Treatment Under the Uniform Commercial Code

Wednesday, January 1st, 1986 at 12:00 am by Jeffrey Penfield Trout
Jeffrey Penfield Trout, From I.T.C. to U.C.C.: Using Federal Tax Criteria to Ensure Lease Treatment Under the Uniform Commercial Code, 1986 Colum. Bus. L. Rev. 233

The proposed U.P.P.L.A., by eliminating the potential use of tax treatment to characterize a transaction for U.C.C. purposes, imposes unnecessary costs, inconvenience, and risk on lessors and thus makes equipment leasing less economically viable at the margin. The leasing industry should seek, therefore, to have the U.P.P.L.A. proposals modified somehow so as to reflect tax considerations. Such a modification would better reflect economic reality, and would be sounder law.

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