(1) Subject to § 8.2A-303, a subsequent lessee from a lessor of goods underan existing lease contract obtains, to the extent of the leasehold interesttransferred, the leasehold interest in the goods that the lessor had or hadpower to transfer, and except as provided in subsection (2) of this sectionand subsection (4) of § 8.2A-527, takes subject to the existing leasecontract. A lessor with voidable title has power to transfer a goodleasehold interest to a good faith subsequent lessee for value, but only tothe extent set forth in the preceding sentence. If goods have been deliveredunder a transaction of purchase the lessor has that power even though:
(a) The lessor's transferor was deceived as to the identity of the lessor;
(b) The delivery was in exchange for a check which is later dishonored;
(c) It was agreed that the transaction was to be a "cash sale"; or
(d) The delivery was procured through fraud punishable as larcenous under thecriminal law.
(2) A subsequent lessee in the ordinary course of business from a lessor whois a merchant dealing in goods of that kind to whom the goods were entrustedby the existing lessee of that lessor before the interest of the subsequentlessee became enforceable against that lessor obtains, to the extent of theleasehold interest transferred, all of that lessor's and the existinglessee's rights to the goods, and takes free of the existing lease contract.
(3) A subsequent lessee from the lessor of goods that are subject to anexisting lease contract and are covered by a certificate of title issuedunder a statute of this Commonwealth or of another jurisdiction takes nogreater rights than those provided both by this section and by thecertificate of title statute.
(1) Subject to § 8.2A-303, a subsequent lessee from a lessor of goods underan existing lease contract obtains, to the extent of the leasehold interesttransferred, the leasehold interest in the goods that the lessor had or hadpower to transfer, and except as provided in subsection (2) of this sectionand subsection (4) of § 8.2A-527, takes subject to the existing leasecontract. A lessor with voidable title has power to transfer a goodleasehold interest to a good faith subsequent lessee for value, but only tothe extent set forth in the preceding sentence. If goods have been deliveredunder a transaction of purchase the lessor has that power even though:
(a) The lessor's transferor was deceived as to the identity of the lessor;
(b) The delivery was in exchange for a check which is later dishonored;
(c) It was agreed that the transaction was to be a "cash sale"; or
(d) The delivery was procured through fraud punishable as larcenous under thecriminal law.
(2) A subsequent lessee in the ordinary course of business from a lessor whois a merchant dealing in goods of that kind to whom the goods were entrustedby the existing lessee of that lessor before the interest of the subsequentlessee became enforceable against that lessor obtains, to the extent of theleasehold interest transferred, all of that lessor's and the existinglessee's rights to the goods, and takes free of the existing lease contract.
(3) A subsequent lessee from the lessor of goods that are subject to anexisting lease contract and are covered by a certificate of title issuedunder a statute of this Commonwealth or of another jurisdiction takes nogreater rights than those provided both by this section and by thecertificate of title statute.
(1) Subject to § 8.2A-303, a subsequent lessee from a lessor of goods underan existing lease contract obtains, to the extent of the leasehold interesttransferred, the leasehold interest in the goods that the lessor had or hadpower to transfer, and except as provided in subsection (2) of this sectionand subsection (4) of § 8.2A-527, takes subject to the existing leasecontract. A lessor with voidable title has power to transfer a goodleasehold interest to a good faith subsequent lessee for value, but only tothe extent set forth in the preceding sentence. If goods have been deliveredunder a transaction of purchase the lessor has that power even though:
(a) The lessor's transferor was deceived as to the identity of the lessor;
(b) The delivery was in exchange for a check which is later dishonored;
(c) It was agreed that the transaction was to be a "cash sale"; or
(d) The delivery was procured through fraud punishable as larcenous under thecriminal law.
(2) A subsequent lessee in the ordinary course of business from a lessor whois a merchant dealing in goods of that kind to whom the goods were entrustedby the existing lessee of that lessor before the interest of the subsequentlessee became enforceable against that lessor obtains, to the extent of theleasehold interest transferred, all of that lessor's and the existinglessee's rights to the goods, and takes free of the existing lease contract.
(3) A subsequent lessee from the lessor of goods that are subject to anexisting lease contract and are covered by a certificate of title issuedunder a statute of this Commonwealth or of another jurisdiction takes nogreater rights than those provided both by this section and by thecertificate of title statute.
