§ 2A-310. Lessor's and lessee's rights when goods become accessions. (1) Goods are “accessions” when they are installed in or affixed to other goods.
(2) The interest of a lessor or a lessee under a lease contract entered into before
the goods became accessions is superior to all interests in the whole except as stated
in subsection (4).
(3) The interest of a lessor or a lessee under a lease contract entered into at the
time or after the goods became accessions is superior to all subsequently acquired
interests in the whole except as stated in subsection (4) but is subordinate to interests
in the whole existing at the time the lease contract was made unless the holders of
such interests in the whole have in writing consented to the lease or disclaimed an
interest in the goods as part of the whole.
(4) The interest of a lessor or a lessee under a lease contract described in subsection
(2) or (3) is subordinate to the interest of:
(a) a buyer in the ordinary course of business or a lessee in the ordinary course
of business of any interest in the whole acquired after the goods became accessions;
(b) a creditor with a security interest in the whole perfected before the lease contract
was made to the extent that the creditor makes subsequent advances without knowledge
of the lease contract.
(5) When under subsections (2) or (3) and (4) a lessor or a lessee of accessions holds
an interest that is superior to all interests in the whole, the lessor or the lessee
may (a) on default, expiration, termination, or cancellation of the lease contract
by the other party but subject to the provisions of the lease contract and this Article,
or (b) if necessary to enforce his or her other rights and remedies under this Article,
remove the goods from the whole, free and clear of all interests in the whole, but
he or she must reimburse any holder of an interest in the whole who is not the lessee
and who has not otherwise agreed for the cost of repair of any physical injury but
not for any diminution in value of the whole caused by the absence of the goods removed
or by any necessity for replacing them. A person entitled to reimbursement may refuse permission to remove until the party
seeking removal gives adequate security for the performance of this obligation.
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