KRS 355.2A-102: Scope.

(1) This article applies to any transaction, regardless of form, that creates a lease and,

in the case of a hybrid lease, it applies to the extent provided in subsection (2) of

this section.

(2) In a hybrid lease:

(a) If the lease-of-goods aspects do not predominate:

1. Only the provisions of this article which relate primarily to the lease -of-

goods aspects of the transaction apply, and the provisions that relate

primarily to the transaction as a whole do not apply;

2. KRS 355.2A-209 applies if the lease is a finance lease; and

3. KRS 355.2A-407 applies to the promises of the lessee in a finance lease

to the extent the promises are consideration for the right to possession

and use of the leased goods; and

(b) If the lease -of-goods aspects predominate, this artic le applies to the

transaction, but does not preclude application in appropriate circumstances of

other law to aspects of the lease which do not relate to the lease of goods.