When does a lease for goods create a security interest in the goods?

Name: When does a lease for goods create a security interest in the goods?
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

A lease for goods creates a security interest in the goods when there is an obligation to make payments for the entire term of the lease without a right to early termination. This effectively means the lessee is committed to paying for the goods in full over time, similar to a secured loan where the goods serve as collateral.

When Does a Lease for Goods Create a Security Interest