S.B. 147

VETOES

(6)      A TRANSFER OF "THE LEASE" OR OF "ALL MY RIGHTS UNDER THE
LEASE", OR A TRANSFER IN SIMILAR GENERAL TERMS, IS A TRANSFER OF RIGHTS,
AND, UNLESS THE LANGUAGE OR THE CIRCUMSTANCES, AS IN A TRANSFER FOR
SECURITY, INDICATE THE CONTRARY, THE TRANSFER IS A DELEGATION OF DUTIES
BY THE TRANSFEROR TO THE TRANSFEREE. ACCEPTANCE BY THE TRANSFEREE
CONSTITUTES A PROMISE BY THE TRANSFEREE TO PERFORM THOSE DUTIES. THE
PROMISE IS ENFORCEABLE BY EITHER THE TRANSFEROR OR THE OTHER PARTY TO
THE LEASE CONTRACT.

(7)      UNLESS OTHERWISE AGREED BY THE LESSOR AND THE LESSEE, A
DELEGATION OF PERFORMANCE DOES NOT RELIEVE THE TRANSFEROR AS AGAINST
THE OTHER PARTY OF ANY DUTY TO PERFORM OR OF ANY LIABILITY FOR
DEFAULT.

(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.

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