396 According to the American Bankruptcy Institute`s Consumer Bankruptcy Reform Forum Report, a majority of courts treat these agreements as guaranteed tempe/loan sales contracts. See for example. B South Carolina Rentals, Inc. v. Arthur, 187 B.R. 502 (D.S.C 1995) (equipment leases concluded); In re Goin, 141 B.R. 730 (Bankr. D. Idaho 1992) (rent-to-account for the freezer and VCR was a security agreement according to the Idaho Common Law).
But seeing Barkley Clark et.al. Rent-to-Own Agreements in Bankruptcy: Sales or Leases, 2 AM. MR. BANKR. Inst. L. REV. 115 (1994) (populated in most countries that lease-to-own-agreement is not a rate sale or an interest in security); see z.B. Powers v. Royce, 983 F.2d 88 (7.
Cir. 1993) (under Illinois law, the own rent transaction is a real lease under Illinois law); In re Yarbrough, 211 B.R. 654 (Bankr. W.D. Tenn. 1997) (self-driving transaction is the real rent according to tennes law); Mr.C`s Rent-to-Own v. Jarrells, 205 B.R. 994 (Bankr.M.D. Ga. 1997) (self-transfer rental for air conditioning was the real rent); In re Rigg, 198 B.R. 681 (Bankr. N.D.
Tex. 1996) (account lease was a real lease under Texas law); In re Morris, 150 B.R. 446 (Bankr. E.D. Mo.1992). Still others find it neither a lease nor an interest in security. In re Trusty, 189 B.R. 977 (Bankr. N.D. Ala. 1995) (according to Alabama`s own lease status, the own lease is neither a warranty nor a lease, but a hybrid commercial agreement that should be considered a performance contract).
Section 1-201 (37) of the Alabama Commercial Code was adopted in 1991, so that leases are expressly excluded from the definition of “security interests.” Back to text 350 Visa Consumer Bankruptcy Reports, Consumer Bankruptcy: Bankruptcy Debtor Survey 12 (July 1996). Professors Culhane and White report that 28.1% of debtors had one or more confirmations in their files. Culhane – White, Creighton Reaffirmation Project, Table 19 (September 23, 1997). Back to text 301 See also letter from Nicholas H. Penfield, Retail Bankruptcy Officer, Peoples Heritage Bank, Portland, ME (August 14, 1997); Letter from George J. Wallace, on behalf of the American Financial Services Association (February 21, 1997), to the National Bankruptcy Review Commission (recommended a review of the development of the reaffirmation process, which generally works well); Memorandum by Charles L. Williams, III to Sarah B. Cummer, Federal Compliance Counsel, Credit Union National Association, Inc.
(January 20, 1997) (confirmation process should continue without judicial review); Letter from Steven D. Goldstein, Chairman of the Credit Department, Sears Roebuck and Co. (August 6, 1996) to the National Bankruptcy Review (Bankruptcy Act should contain a clear legal authorization allowing the creditor to contact the debtor for confirmation and that the courts cannot intervene in voluntary confirmation agreements that otherwise comply with the requirements of the code).