WILLIAM DONALD SCHAEFER, Governor                           Ch. 535

(8) IN A CONSUMER LEASE, TO PROHIBIT THE TRANSFER OF AN INTEREST OF
A PARTY UNDER THE LEASE CONTRACT OR TO MAKE A TRANSFER AN EVENT OF
DEFAULT, THE LANGUAGE MUST BE SPECIFIC, BY A WRITING, AND CONSPICUOUS.

2A-304. SUBSEQUENT LEASE OF GOODS BY LESSOR

(1)      SUBJECT TO § 2A-303, A SUBSEQUENT LESSEE FROM A LESSOR OF GOODS
UNDER AN EXISTING LEASE CONTRACT OBTAINS, TO THE EXTENT OF THE
LEASEHOLD INTEREST TRANSFERRED, THE LEASEHOLD INTEREST IN THE GOODS
THAT THE LESSOR HAD OR HAD POWER TO TRANSFER AND, EXCEPT AS PROVIDED
IN SUBSECTION (2) AND § 2A-527(4), TAKES SUBJECT TO THE EXISTING LEASE
CONTRACT. A LESSOR WITH VOIDABLE TITLE HAS POWER TO TRANSFER A GOOD
LEASEHOLD INTEREST TO A GOOD FAITH SUBSEQUENT LESSEE FOR VALUE, BUT
ONLY TO THE EXTENT SET FORTH IN THE PRECEDING SENTENCE. IF GOODS HAVE
BEEN DELIVERED UNDER A TRANSACTION OF PURCHASE THE LESSOR HAS THAT
POWER EVEN THOUGH:

(A)     THE LESSOR'S TRANSFEROR WAS DECEIVED AS TO THE IDENTITY
OF THE LESSOR;

(B)     THE DELIVERY WAS IN EXCHANGE FOR A CHECK WHICH IS LATER
DISHONORED;

(C)     IT WAS AGREED THAT THE TRANSACTION WAS TO BE A "CASH
SALE"; OR

(D)     THE DELIVERY WAS PROCURED THROUGH FRAUD PUNISHABLE
UNDER THE CRIMINAL LAW.

(2)      A SUBSEQUENT LESSEE IN THE ORDINARY COURSE OF BUSINESS FROM A
LESSOR WHO IS A MERCHANT DEALING IN GOODS OF THAT KIND TO WHOM THE
GOODS WERE ENTRUSTED BY THE EXISTING LESSEE OF THAT LESSOR BEFORE THE
INTEREST OF THE SUBSEQUENT LESSEE BECAME ENFORCEABLE AGAINST THAT
LESSOR OBTAINS, TO THE EXTENT OF THE LEASEHOLD INTEREST TRANSFERRED,
ALL OF THAT LESSOR'S AND THE EXISTING LESSEE'S RIGHTS TO THE GOODS, AND
TAKES FREE OF THE EXISTING LEASE CONTRACT.

(3)      A SUBSEQUENT LESSEE FROM THE LESSOR OF GOODS THAT ARE SUBJECT
TO AN EXISTING LEASE CONTRACT AND ARE COVERED BY A CERTIFICATE OF TITLE
ISSUED UNDER A STATUTE OF THIS STATE OR OF ANOTHER JURISDICTION TAKES
NO GREATER RIGHTS THAN THOSE PROVIDED BOTH BY THIS SECTION AND BY THE
CERTIFICATE-OF-TITLE STATUTE.

2A-305. SALE OR SUBLEASE OF GOODS BY LESSEE

(1) SUBJECT TO THE PROVISIONS OF § 2A-303, A BUYER OR SUBLESSEE FROM
THE LESSEE OF GOODS UNDER AN EXISTING LEASE CONTRACT OBTAINS, TO THE
EXTENT OF THE INTEREST TRANSFERRED, THE LEASEHOLD INTEREST IN THE
GOODS THAT THE LESSEE HAD OR HAD POWER TO TRANSFER AND, EXCEPT AS
PROVIDED IN SUBSECTION (2) AND § 2A-511(4), TAKES SUBJECT TO THE EXISTING
LEASE CONTRACT. A LESSEE WITH A VOIDABLE LEASEHOLD INTEREST HAS POWER
TO TRANSFER A GOOD LEASEHOLD INTEREST TO A GOOD FAITH BUYER FOR VALUE

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