§ 8.2A-309. Lessor's and lessee's rights when goods become fixtures.
(1) In this section:
(a) Goods are "fixtures" when they become so related to particular realestate that an interest in them arises under real estate law;
(b) A "fixture filing" is the filing, in the office where a record of amortgage on the real estate would be filed or recorded, of a financingstatement covering goods that are or are to become fixtures and conforming tothe requirements of subdivisions (a) and (b) of § 8.9A-502;
(c) A lease is a "purchase money lease" unless the lessee has possession oruse of the goods or the right to possession or use of the goods before thelease agreement is enforceable;
(d) A mortgage is a "construction mortgage" to the extent it secures anobligation incurred for the construction of an improvement on land includingthe acquisition cost of the land, if the recorded writing so indicates; and
(e) "Encumbrance" includes real estate mortgages and other liens on realestate and all other rights in real estate that are not ownership interests.
(2) Under this title a lease may be of goods that are fixtures or maycontinue in goods that become fixtures, but no lease exists under this titleof ordinary building materials incorporated into an improvement on land.
(3) This title does not prevent creation of a lease of fixtures pursuant toreal estate law.
(4) The perfected interest of a lessor of fixtures has priority over aconflicting interest of an encumbrancer or owner of the real estate if:
(a) The lease is a purchase money lease, the conflicting interest of theencumbrancer or owner arises before the goods become fixtures, the interestof the lessor is perfected by a fixture filing before the goods becomefixtures or within ten days thereafter, and the lessee has an interest ofrecord in the real estate or is in possession of the real estate; or
(b) The interest of the lessor is perfected by a fixture filing before theinterest of the encumbrancer or owner is of record, the lessor's interest haspriority over any conflicting interest of a predecessor in title of theencumbrancer or owner, and the lessee has an interest of record in the realestate or is in possession of the real estate.
(5) The interest of a lessor of fixtures, whether or not perfected, haspriority over the conflicting interest of an encumbrancer or owner of thereal estate if:
(a) The fixtures are readily removable factory or office machines, readilyremovable equipment that is not primarily used or leased for use in theoperation of the real estate, or readily removable replacements of domesticappliances that are goods subject to a consumer lease, and before the goodsbecome fixtures the lease contract is enforceable;
(b) The conflicting interest is a lien on the real estate obtained by legalor equitable proceedings after the lease contract is enforceable;
(c) The encumbrancer or owner has consented in writing to the lease or hasdisclaimed an interest in the goods as fixtures; or
(d) The lessee has a right to remove the goods as against the encumbrancer orowner. If the lessee's right to remove terminates, the priority of theinterest of the lessor continues for a reasonable time.
(6) Notwithstanding subdivision (4) (a) of this section, but otherwisesubject to subsections (4) and (5) of this section, the interest of a lessorof fixtures, including the lessor's residual interest, is subordinate to theconflicting interest of an encumbrancer of the real estate under aconstruction mortgage recorded before the goods become fixtures if the goodsbecome fixtures before the completion of the construction. To the extentgiven to refinance a construction mortgage, the conflicting interest of anencumbrancer of the real estate under a mortgage has this priority to thesame extent as the encumbrancer of the real estate under the constructionmortgage.
(7) In cases not within the preceding subsections, priority between theinterest of a lessor of fixtures, including the lessor's residual interest,and the conflicting interest of an encumbrancer or owner of the real estatewho is not the lessee is determined by the priority rules governingconflicting interests in real estate.
(8) If the interest of a lessor of fixtures, including the lessor's residualinterest, has priority over all conflicting interests of all owners andencumbrancers of the real estate, the lessor or the lessee may (i) ondefault, expiration, termination, or cancellation of the lease agreement butsubject to the lease agreement and this title, or (ii) if necessary toenforce other rights and remedies of the lessor or lessee under this title,remove the goods from the real estate, free and clear of all conflictinginterests of all owners and encumbrancers of the real estate, but the lessoror lessee must reimburse any encumbrancer or owner of the real estate who isnot the lessee and who has not otherwise agreed for the cost of repair of anyphysical injury, but not for any diminution in value of the real estatecaused by the absence of the goods removed or by any necessity of replacingthem. A person entitled to reimbursement may refuse permission to removeuntil the party seeking removal gives adequate security for the performanceof this obligation.
(9) Even though the lease agreement does not create a security interest, theinterest of a lessor of fixtures, including the lessor's residual interest,is perfected by filing a financing statement as a fixture filing for leasedgoods that are or are to become fixtures in accordance with the relevantprovisions of the title on secured transactions (Title 8.9A).
§ 8.2A-309. Lessor's and lessee's rights when goods become fixtures.
(1) In this section:
(a) Goods are "fixtures" when they become so related to particular realestate that an interest in them arises under real estate law;
(b) A "fixture filing" is the filing, in the office where a record of amortgage on the real estate would be filed or recorded, of a financingstatement covering goods that are or are to become fixtures and conforming tothe requirements of subdivisions (a) and (b) of § 8.9A-502;
(c) A lease is a "purchase money lease" unless the lessee has possession oruse of the goods or the right to possession or use of the goods before thelease agreement is enforceable;
(d) A mortgage is a "construction mortgage" to the extent it secures anobligation incurred for the construction of an improvement on land includingthe acquisition cost of the land, if the recorded writing so indicates; and
(e) "Encumbrance" includes real estate mortgages and other liens on realestate and all other rights in real estate that are not ownership interests.
(2) Under this title a lease may be of goods that are fixtures or maycontinue in goods that become fixtures, but no lease exists under this titleof ordinary building materials incorporated into an improvement on land.
(3) This title does not prevent creation of a lease of fixtures pursuant toreal estate law.
(4) The perfected interest of a lessor of fixtures has priority over aconflicting interest of an encumbrancer or owner of the real estate if:
(a) The lease is a purchase money lease, the conflicting interest of theencumbrancer or owner arises before the goods become fixtures, the interestof the lessor is perfected by a fixture filing before the goods becomefixtures or within ten days thereafter, and the lessee has an interest ofrecord in the real estate or is in possession of the real estate; or
(b) The interest of the lessor is perfected by a fixture filing before theinterest of the encumbrancer or owner is of record, the lessor's interest haspriority over any conflicting interest of a predecessor in title of theencumbrancer or owner, and the lessee has an interest of record in the realestate or is in possession of the real estate.
(5) The interest of a lessor of fixtures, whether or not perfected, haspriority over the conflicting interest of an encumbrancer or owner of thereal estate if:
(a) The fixtures are readily removable factory or office machines, readilyremovable equipment that is not primarily used or leased for use in theoperation of the real estate, or readily removable replacements of domesticappliances that are goods subject to a consumer lease, and before the goodsbecome fixtures the lease contract is enforceable;
(b) The conflicting interest is a lien on the real estate obtained by legalor equitable proceedings after the lease contract is enforceable;
(c) The encumbrancer or owner has consented in writing to the lease or hasdisclaimed an interest in the goods as fixtures; or
(d) The lessee has a right to remove the goods as against the encumbrancer orowner. If the lessee's right to remove terminates, the priority of theinterest of the lessor continues for a reasonable time.
(6) Notwithstanding subdivision (4) (a) of this section, but otherwisesubject to subsections (4) and (5) of this section, the interest of a lessorof fixtures, including the lessor's residual interest, is subordinate to theconflicting interest of an encumbrancer of the real estate under aconstruction mortgage recorded before the goods become fixtures if the goodsbecome fixtures before the completion of the construction. To the extentgiven to refinance a construction mortgage, the conflicting interest of anencumbrancer of the real estate under a mortgage has this priority to thesame extent as the encumbrancer of the real estate under the constructionmortgage.
(7) In cases not within the preceding subsections, priority between theinterest of a lessor of fixtures, including the lessor's residual interest,and the conflicting interest of an encumbrancer or owner of the real estatewho is not the lessee is determined by the priority rules governingconflicting interests in real estate.
(8) If the interest of a lessor of fixtures, including the lessor's residualinterest, has priority over all conflicting interests of all owners andencumbrancers of the real estate, the lessor or the lessee may (i) ondefault, expiration, termination, or cancellation of the lease agreement butsubject to the lease agreement and this title, or (ii) if necessary toenforce other rights and remedies of the lessor or lessee under this title,remove the goods from the real estate, free and clear of all conflictinginterests of all owners and encumbrancers of the real estate, but the lessoror lessee must reimburse any encumbrancer or owner of the real estate who isnot the lessee and who has not otherwise agreed for the cost of repair of anyphysical injury, but not for any diminution in value of the real estatecaused by the absence of the goods removed or by any necessity of replacingthem. A person entitled to reimbursement may refuse permission to removeuntil the party seeking removal gives adequate security for the performanceof this obligation.
(9) Even though the lease agreement does not create a security interest, theinterest of a lessor of fixtures, including the lessor's residual interest,is perfected by filing a financing statement as a fixture filing for leasedgoods that are or are to become fixtures in accordance with the relevantprovisions of the title on secured transactions (Title 8.9A).
§ 8.2A-309. Lessor's and lessee's rights when goods become fixtures.
(1) In this section:
(a) Goods are "fixtures" when they become so related to particular realestate that an interest in them arises under real estate law;
(b) A "fixture filing" is the filing, in the office where a record of amortgage on the real estate would be filed or recorded, of a financingstatement covering goods that are or are to become fixtures and conforming tothe requirements of subdivisions (a) and (b) of § 8.9A-502;
(c) A lease is a "purchase money lease" unless the lessee has possession oruse of the goods or the right to possession or use of the goods before thelease agreement is enforceable;
(d) A mortgage is a "construction mortgage" to the extent it secures anobligation incurred for the construction of an improvement on land includingthe acquisition cost of the land, if the recorded writing so indicates; and
(e) "Encumbrance" includes real estate mortgages and other liens on realestate and all other rights in real estate that are not ownership interests.
(2) Under this title a lease may be of goods that are fixtures or maycontinue in goods that become fixtures, but no lease exists under this titleof ordinary building materials incorporated into an improvement on land.
(3) This title does not prevent creation of a lease of fixtures pursuant toreal estate law.
(4) The perfected interest of a lessor of fixtures has priority over aconflicting interest of an encumbrancer or owner of the real estate if:
(a) The lease is a purchase money lease, the conflicting interest of theencumbrancer or owner arises before the goods become fixtures, the interestof the lessor is perfected by a fixture filing before the goods becomefixtures or within ten days thereafter, and the lessee has an interest ofrecord in the real estate or is in possession of the real estate; or
(b) The interest of the lessor is perfected by a fixture filing before theinterest of the encumbrancer or owner is of record, the lessor's interest haspriority over any conflicting interest of a predecessor in title of theencumbrancer or owner, and the lessee has an interest of record in the realestate or is in possession of the real estate.
(5) The interest of a lessor of fixtures, whether or not perfected, haspriority over the conflicting interest of an encumbrancer or owner of thereal estate if:
(a) The fixtures are readily removable factory or office machines, readilyremovable equipment that is not primarily used or leased for use in theoperation of the real estate, or readily removable replacements of domesticappliances that are goods subject to a consumer lease, and before the goodsbecome fixtures the lease contract is enforceable;
(b) The conflicting interest is a lien on the real estate obtained by legalor equitable proceedings after the lease contract is enforceable;
(c) The encumbrancer or owner has consented in writing to the lease or hasdisclaimed an interest in the goods as fixtures; or
(d) The lessee has a right to remove the goods as against the encumbrancer orowner. If the lessee's right to remove terminates, the priority of theinterest of the lessor continues for a reasonable time.
(6) Notwithstanding subdivision (4) (a) of this section, but otherwisesubject to subsections (4) and (5) of this section, the interest of a lessorof fixtures, including the lessor's residual interest, is subordinate to theconflicting interest of an encumbrancer of the real estate under aconstruction mortgage recorded before the goods become fixtures if the goodsbecome fixtures before the completion of the construction. To the extentgiven to refinance a construction mortgage, the conflicting interest of anencumbrancer of the real estate under a mortgage has this priority to thesame extent as the encumbrancer of the real estate under the constructionmortgage.
(7) In cases not within the preceding subsections, priority between theinterest of a lessor of fixtures, including the lessor's residual interest,and the conflicting interest of an encumbrancer or owner of the real estatewho is not the lessee is determined by the priority rules governingconflicting interests in real estate.
(8) If the interest of a lessor of fixtures, including the lessor's residualinterest, has priority over all conflicting interests of all owners andencumbrancers of the real estate, the lessor or the lessee may (i) ondefault, expiration, termination, or cancellation of the lease agreement butsubject to the lease agreement and this title, or (ii) if necessary toenforce other rights and remedies of the lessor or lessee under this title,remove the goods from the real estate, free and clear of all conflictinginterests of all owners and encumbrancers of the real estate, but the lessoror lessee must reimburse any encumbrancer or owner of the real estate who isnot the lessee and who has not otherwise agreed for the cost of repair of anyphysical injury, but not for any diminution in value of the real estatecaused by the absence of the goods removed or by any necessity of replacingthem. A person entitled to reimbursement may refuse permission to removeuntil the party seeking removal gives adequate security for the performanceof this obligation.
(9) Even though the lease agreement does not create a security interest, theinterest of a lessor of fixtures, including the lessor's residual interest,is perfected by filing a financing statement as a fixture filing for leasedgoods that are or are to become fixtures in accordance with the relevantprovisions of the title on secured transactions (Title 8.9A).
