§ 10102 Hybrid Lease Application

(a) This division applies to any transaction, regardless of form, that creates a lease and, in the case of a hybrid lease, it applies to the extent provided in subdivision (b). (b) In a hybrid lease, the following rules apply: (1) If the lease-of-goods aspects do not predominate, the following rules apply: (A) Only the provisions of this division which relate primarily to the lease-of-goods aspects of the transaction apply, and the provisions that relate primarily to the transaction as a whole do not apply. (B) Section 10209 applies if the lease is a finance lease. (C) Section 10407 applies to the promises of the lessee in a finance lease to the extent the promises are consideration for the right to possession and use of the leased goods. (2) If the lease-of-goods aspects predominate, this division applies to the transaction, but does not preclude application in appropriate circumstances of other law to aspects of the lease which do not relate to the lease of goods. (Amended by Stats. 2023, Ch. 210, Sec. 74. (SB 95) Effective January 1, 2024.)