TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 12

UNIFORM COMMERCIAL CODE — LEASES

PART 3.

EFFECT OF LEASE CONTRACT

28-12-307.  Priority of liens arising by attachment or levy on, security interests in, and other claims to goods. (1) Except as otherwise provided in section 28-12-306, a creditor of a lessee takes subject to the lease contract.

(2)  Except as otherwise provided in subsection (3) of this section and in sections 28-12-306 and 28-12-308, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.

(3)  Except as otherwise provided in sections 28-9-317, 28-9-321 and 28-9-323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.

History:

[28-12-307, added 1993, ch. 287, sec. 1, p. 993; am. 2001, ch. 208, sec. 22, p. 821.]