Leases

[...]the court rejected the argument that the agreement constituted a lease intended for security, finding that either section 1-203(1) or (4) of the U.C.C. could apply under the circumstances, and concluded that a dispute of material fact existed regarding the economic value of the equipment at the end of the lease.9 Although the court recognized the "troubling policy implications of allowing [the lessee] to enter into the Lease Agreement and then unilaterally declare it void,"10 it held that disputes of fact precluded a summary judgment determination of whether the agreement was a true lease.11 In in re Wells,12 the lessee sought to characterize a motor vehicle lease agreement as a secured debt in her Chapter 13 bankruptcy plan.