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BY Robert W. Ihne
November 23, 2010

Ability to Collect Rentals Under Article 2A Finance Leases or Leases with 'Hell-or-High-Water' And/or Waiver of Defenses Provisions

Direct Capital Corp. v. Babatunde Osunbayo, 104546/98, NYLJ 1202472562632, at *1 (Civ., RI, Sept. 21, 2010)

The court grants a lessor's motion for summary judgment against a lessee in default, finding that the lease satisfied the requirements for an Article 2A finance lease and that the lessee had accepted the equipment. Notwithstanding the lessee's defense that the equipment vendor had failed to disclose certain information about the equipment, the court holds that the lessor had only arranged for the financing and was not responsible in any way for the equipment.

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