WILLIAM DONALD SCHAEFER, Governor                            Ch. 535

(D) THE LESSEE HAS A RIGHT TO REMOVE THE GOODS AS AGAINST THE
ENCUMBRANCER OR OWNER. IF THE LESSEE'S RIGHT TO REMOVE TERMINATES,
THE PRIORITY OF THE INTEREST OF THE LESSOR CONTINUES FOR A REASONABLE
TIME.

(6)      NOTWITHSTANDING PARAGRAPH (A) OF SUBSECTION (4) BUT OTHERWISE
SUBJECT TO SUBSECTIONS (4) AND (5), THE INTEREST OF A LESSOR OF FIXTURES
INCLUDING THE LESSOR'S RESIDUAL INTEREST IS SUBORDINATE TO THE
CONFLICTING INTEREST OF AN ENCUMBRANCER OF THE REAL ESTATE UNDER A
CONSTRUCTION MORTGAGE RECORDED BEFORE THE GOODS BECOME FIXTURES IF
THE GOODS BECOME FIXTURES BEFORE THE COMPLETION OF THE CONSTRUCTION.
TO THE EXTENT GIVEN TO REFINANCE A CONSTRUCTION MORTGAGE, THE
CONFLICTING INTEREST OF AN ENCUMBRANCER OF THE REAL ESTATE UNDER A
MORTGAGE HAS THIS PRIORITY TO THE SAME EXTENT AS THE ENCUMBRANCER OF
THE REAL ESTATE UNDER THE CONSTRUCTION MORTGAGE.

(7)      IN CASES NOT WITHIN THE PRECEDING SUBSECTIONS, PRIORITY
BETWEEN THE INTEREST OF A LESSOR OF FIXTURES INCLUDING THE LESSOR'S
RESIDUAL INTEREST AND THE CONFLICTING INTEREST OF AN ENCUMBRANCER OR
OWNER OF THE REAL ESTATE WHO IS NOT THE LESSEE IS DETERMINED BY THE
PRIORITY RULES GOVERNING CONFLICTING INTERESTS IN REAL ESTATE.

(8)      IF THE INTEREST OF A LESSOR OF FIXTURES INCLUDING THE LESSOR'S
RESIDUAL INTEREST HAS PRIORITY OVER ALL CONFLICTING INTERESTS OF ALL
OWNERS AND ENCUMBRANCERS OF THE REAL ESTATE, THE LESSOR OR THE LESSEE
MAY (A) ON DEFAULT, EXPIRATION, TERMINATION, OR CANCELLATION OF THE
LEASE AGREEMENT BY THE OTHER PARTY BUT SUBJECT TO THE PROVISIONS OF
THE LEASE AGREEMENT AND THIS ARTICLE, OR (B) IF NECESSARY TO ENFORCE THE
OTHER RIGHTS AND REMEDIES UNDER THIS ARTICLE, INCLUDING THE LESSOR'S
RESIDUAL INTEREST, REMOVE THE GOODS FROM THE REAL ESTATE, FREE AND
CLEAR OF ALL CONFLICTING INTERESTS OF ALL OWNERS AND ENCUMBRANCERS OF
THE REAL ESTATE, BUT THE LESSOR OR THE LESSEE MUST REIMBURSE ANY
ENCUMBRANCER OR OWNER OF THE REAL ESTATE 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 REAL ESTATE CAUSED
BY THE ABSENCE OF THE GOODS REMOVED OR BY ANY NECESSITY OF 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.

(9)      EVEN THOUGH THE LEASE AGREEMENT DOES NOT CREATE A SECURITY
INTEREST, THE INTEREST OF A LESSOR OF FIXTURES, INCLUDING THE LESSOR'S
RESIDUAL INTEREST, IS PERFECTED BY FILING A FINANCING STATEMENT AS A
FIXTURE FILING FOR LEASED GOODS THAT ARE OR ARE TO BECOME FIXTURES IN
ACCORDANCE WITH THE RELEVANT PROVISIONS OF THE TITLE ON SECURED
TRANSACTIONS (ARTICLE 9).

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