[Previous] [Next]
§12A-2A-307.
§12A-2A-307.
PRIORITY OF LIENS ARISING BY ATTACHMENT OR LEVY
ON, SECURITY INTERESTS IN, AND OTHER CLAIMS TO GOODS
(1) Except as otherwise provided in Section 2A-306 of this title, a
creditor of a lessee takes subject to the lease contract.
(2) Except as otherwise provided in subsections (3) and (4) of this
section and in Sections 2A-306 and 2A-308 of this title, a creditor of
a lessor takes subject to the lease contract unless:
(a) the creditor holds a lien that attached to the goods before the
lease contract became enforceable;
(b) the creditor holds a security interest in the goods and the lessee
did not give value and receive delivery of the goods without knowledge
of the security interest; or
(c) the creditor holds a security interest in the goods which was
perfected (Section 9-303 of this title) before the lease contract
became enforceable.
(3) A lessee in the ordinary course of business takes the leasehold
interest free of a security interest in the goods created by the
lessor even though the security interest is perfected (Section 9-303
of this title) and the lessee knows of its existence.
(4) A lessee other than a lessee in the ordinary course of business
takes the leasehold interest free of a security interest to the extent
that it secures future advances made after the secured party acquires
knowledge of the lease or more than forty-five (45) days after the
lease contract becomes enforceable, whichever first occurs, unless the
future advances are made pursuant to a commitment entered into without
knowledge of the lease and before the expiration of the forty-five-day
period.
[Previous] [Next]