New Jersey § 12a:9-407

§ 12a:9-407.

(a) Term restricting assignment generally ineffective. Except as otherwise provided in subsection (b) , a term in a lease agreement is ineffective to the extent that it: (1) prohibits, restricts, or requires the consent of a party to the lease to the assignment

or transfer of, or the creation, attachment, perfection, or enforcement of a security

interest in, an interest of a party under the lease contract or in the lessor's residual

interest in the goods; or (2) provides that the assignment or transfer or the creation, attachment, perfection,

or enforcement of the security interest may give rise to a default, breach, right

of recoupment, claim, defense, termination, right of termination, or remedy under

the lease. (b) Effectiveness of certain terms. Except as otherwise provided in 12A:2A-303 (7) , a term described in subsection (a) (2) is effective to the extent that there is: (1) a transfer by the lessee of the lessee's right of possession or use of the goods

in violation of the term; or (2) a delegation of a material performance of either party to the lease contract in

violation of the term. (c) Security interest not material impairment. The creation, attachment, perfection, or enforcement of a security interest in the

lessor's interest under the lease contract or the lessor's residual interest in the

goods is not a transfer that materially impairs the lessee's prospect of obtaining

return performance or materially changes the duty of or materially increases the burden

or risk imposed on the lessee within the purview of 12A:2A-303 (4) unless, and then only to the extent that, enforcement actually results in a delegation

of material performance of the lessor.