(a) Creditor of lessor.--A creditor of a lessor in possession of goods subject to a lease contract may treat
the lease contract as void if as against the creditor retention of possession by the
lessor is fraudulent under any statute or rule of law, but retention of possession
in good faith and current course of trade by the lessor for a commercially reasonable
time after the lease contract becomes enforceable is not fraudulent.
(b) Nonimpairment of rights of creditor of lessor.--Nothing in this division impairs the rights of creditors of a lessor if the lease
(1) becomes enforceable, not in current course of trade but in satisfaction of or
as security for a preexisting claim for money, security or the like; and
(2) is made under circumstances which under any statute or rule of law apart from
this division would constitute the transaction a fraudulent transfer or voidable preference.
(c) Creditor of seller.--A creditor of a seller may treat a sale or an identification of goods to a contract
for sale as void if as against the creditor retention of possession by the seller
is fraudulent under any statute or rule of law, but retention of possession of the
goods pursuant to a lease contract entered into by the seller as lessee and the buyer
as lessor in connection with the sale or identification of the goods is not fraudulent
if the buyer bought for value and in good faith.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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