WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

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 (TITLE 9).

2A-310. LESSOR'S AND LESSEE'S RIGHTS WHEN GOODS BECOME ACCESSIONS

(1)      GOODS ARE "ACCESSIONS" WHEN THEY ARE INSTALLED IN OR AFFIXED
TO OTHER GOODS.

(2)      THE INTEREST OF A LESSOR OR A LESSEE UNDER A LEASE CONTRACT
ENTERED INTO BEFORE THE GOODS BECAME ACCESSIONS IS SUPERIOR TO ALL
INTERESTS IN THE WHOLE EXCEPT AS STATED IN SUBSECTION (4).

(3)      THE INTEREST OF A LESSOR OR A LESSEE UNDER A LEASE CONTRACT
ENTERED INTO AT THE TIME OR AFTER THE GOODS BECAME ACCESSIONS IS
SUPERIOR TO ALL SUBSEQUENTLY ACQUIRED INTERESTS IN THE WHOLE EXCEPT AS
STATED IN SUBSECTION (4) BUT IS SUBORDINATE TO INTERESTS IN THE WHOLE
EXISTING AT THE TIME THE LEASE CONTRACT WAS MADE UNLESS THE HOLDERS OF
SUCH INTERESTS IN THE WHOLE HAVE IN WRITING CONSENTED TO THE LEASE OR
DISCLAIMED AN INTEREST IN THE GOODS AS PART OF THE WHOLE.

(4)      THE INTEREST OF A LESSOR OR A LESSEE UNDER A LEASE CONTRACT
DESCRIBED IN SUBSECTION (2) OR (3) IS SUBORDINATE TO THE INTEREST OF:

(A)     A BUYER IN THE ORDINARY COURSE OF BUSINESS OR A LESSEE IN
THE ORDINARY COURSE OF BUSINESS OF ANY INTEREST IN THE WHOLE ACQUIRED
AFTER THE GOODS BECAME ACCESSIONS; OR

(B)     A CREDITOR WITH A SECURITY INTEREST IN THE WHOLE
PERFECTED BEFORE THE LEASE CONTRACT WAS MADE TO THE EXTENT THAT THE
CREDITOR MAKES SUBSEQUENT ADVANCES WITHOUT KNOWLEDGE OF THE LEASE
CONTRACT.

(5)      WHEN UNDER SUBSECTIONS (2) OR (3) AND (4) A LESSOR OR A LESSEE OF
ACCESSIONS HOLDS AN INTEREST THAT IS SUPERIOR TO ALL INTERESTS IN THE
WHOLE, THE LESSOR OR THE LESSEE MAY (A) ON DEFAULT, EXPIRATION,
TERMINATION, OR CANCELLATION OF THE LEASE CONTRACT BY THE OTHER PARTY
BUT SUBJECT TO THE PROVISIONS OF THE LEASE CONTRACT AND THIS ARTICLE, OR
(B) IF NECESSARY TO ENFORCE HIS (OR HER) OTHER RIGHTS AND REMEDIES UNDER
THIS ARTICLE, REMOVE THE GOODS FROM THE WHOLE, FREE AND CLEAR OF ALL
INTERESTS IN THE WHOLE, BUT HE (OR SHE) MUST REIMBURSE ANY HOLDER OF AN
INTEREST IN THE WHOLE 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 WHOLE CAUSED BY THE ABSENCE OF THE GOODS

- 3445 -