WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

(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
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

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