Ch. 535                                        1994 LAWS OF MARYLAND

OR A GOOD FAITH SUBLESSEE FOR VALUE, BUT ONLY TO THE EXTENT SET FORTH IN
THE PRECEDING SENTENCE. WHEN GOODS HAVE BEEN DELIVERED UNDER A
TRANSACTION OF LEASE THE LESSEE HAS THAT POWER EVEN THOUGH:

(A)     THE LESSOR WAS DECEIVED AS TO THE IDENTITY OF THE LESSEE;

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

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

(2)      A BUYER IN THE ORDINARY COURSE OF BUSINESS OR A SUBLESSEE IN
THE ORDINARY COURSE OF BUSINESS FROM A LESSEE WHO IS A MERCHANT
DEALING IN GOODS OF THAT KIND TO WHOM THE GOODS WERE ENTRUSTED BY
THE LESSOR OBTAINS, TO THE EXTENT OF THE INTEREST TRANSFERRED, ALL OF
THE LESSOR'S AND LESSEE'S RIGHTS TO THE GOODS, AND TAKES FREE OF THE
EXISTING LEASE CONTRACT:

(3)      A BUYER OR SUBLESSEE FROM THE LESSEE 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-306. PRIORITY OF CERTAIN LIENS ARISING BY OPERATION OF LAW

IF A PERSON IN THE ORDINARY COURSE OF HIS BUSINESS FURNISHES
SERVICES OR MATERIALS WITH RESPECT TO GOODS SUBJECT TO A LEASE
CONTRACT, A LIEN UPON THOSE GOODS IN THE POSSESSION OF THAT PERSON
GIVEN BY STATUTE OR RULE, OF LAW FOR THOSE MATERIALS OR SERVICES IS
ENFORCEABLE AND TAKES PRIORITY OVER ANY INTEREST OF THE LESSOR OR
LESSEE UNDER THE LEASE CONTRACT OR THIS ARTICLE UNLESS THE LIEN IS
CREATED BY STATUTE AND THE STATUTE PROVIDES OTHERWISE OR UNLESS THE
LIEN IS CREATED BY RULE OF LAW AND THE RULE OF LAW PROVIDES OTHERWISE.

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 § 2A-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 §§ 2A-306 AND 2A-308, A CREDITOR OF A LESSOR TAKES, SUBJECT TO THE
LEASE CONTRACT:

(A)     UNLESS THE CREDITOR HOLDS A LIEN THAT ATTACHED TO THE
GOODS BEFORE THE LEASE CONTRACT BECAME ENFORCEABLE;

(B)      UNLESS 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.

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