New Jersey § 12a:2a-303

§ 12a:2a-303.

(1) As used in this section, “ creation of a security interest ” includes the sale of a lease contract that is subject to Chapter 9, Secured Transactions,

by reason of 12A:9-109(a)(3) . (2) Except as provided in subsection (3) and 12A:9-407 , a provision in a lease agreement which (i) prohibits the voluntary or involuntary

transfer, including a transfer by sale, sublease, creation or enforcement of a security

interest, or attachment, levy, or other judicial process, of an interest of a party

under the lease contract or of the lessor's residual interest in the goods, or (ii)

makes such a transfer an event of default, gives rise to the rights and remedies provided

in subsection (4) , but a transfer that is prohibited or is an event of default under the lease agreement

is otherwise effective. (3) A provision in a lease agreement which (i) prohibits a transfer of a right to damages

for default with respect to the whole lease contract or of a right to payment arising

out of the transferor's due performance of the transferor's entire obligation, or

(ii) makes such a transfer an event of default, is not enforceable, and such a transfer

is not a transfer that materially impairs the prospect of obtaining return performance

by, materially changes the duty of, or materially increases the burden or risk imposed

on, the other party to the lease contract within the purview of subsection (4) . (4) Subject to subsection (3) and 12A:9-407 : (a) if a transfer is made which is made an event of default under a lease agreement,

the party to the lease contract not making the transfer, unless that party waives

the default or otherwise agrees, has the rights and remedies described in 12A:2A-501(2); (b) if paragraph (a) is not applicable and if a transfer is made that (i) is prohibited

under a lease agreement or (ii) materially impairs the prospect of obtaining return

performance by, materially changes the duty of, or materially increases the burden

or risk imposed on, the other party to the lease contract, unless the party not making

the transfer agrees at any time to the transfer in the lease contract or otherwise,

then, except as limited by contract, (i) the transferor is liable to the party not

making the transfer for damages caused by the transfer to the extent that the damages

could not reasonably be prevented by the party not making the transfer and (ii) a

court having jurisdiction may grant other appropriate relief, including cancellation

of the lease contract or an injunction against the transfer. (5) A transfer of “the lease” or of “all my rights under the lease,” or a transfer in

similar general terms, is a transfer of rights and, unless the language or the circumstances,

as in a transfer for security, indicate the contrary, the transfer is a delegation

of duties by the transferor to the transferee. Acceptance by the transferee constitutes a promise by the transferee to perform

those duties. The promise is enforceable by either the transferor or the other party to the lease

contract. (6) Unless otherwise agreed by the lessor and the lessee, a delegation of performance

does not relieve the transferor as against the other party of any duty to perform

or of any liability for default. (7) In a consumer lease, to prohibit the transfer of an interest of a party under the

lease contract or to make a transfer an event of default, the language shall be specific,

by a writing, and conspicuous.