Sec. 42a-2A-404. Subsequent lease of goods by lessor. (a) Subject to section 42a-2A-403, 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 that the lessor had or had power to transfer and, except as otherwise provided in subsection (b) of this section and subsection (d) of section 42a-2A-720, takes subject to the existing lease contract.
(b) A lessor with voidable rights or voidable title acquired in a purchase of goods from a transferor has power to transfer a good leasehold interest to a good faith subsequent lessee for value. Under this subsection, voidable rights or voidable title is acquired when the goods have been delivered under a transaction of purchase even if:
(1) The transferor was deceived as to the identity of the lessor;
(2) The delivery was in exchange for a check later dishonored;
(3) It was agreed that the transaction was to be a cash sale; or
(4) The delivery was procured through fraud punishable under criminal law.
(c) A subsequent lessee in the ordinary course of business from a lessor that is a merchant dealing in goods of that kind to which the goods were entrusted by the existing lessee of such lessor before the interest of the subsequent lessee became enforceable against such lessor obtains, to the extent of the leasehold interest transferred, all rights to the goods of such lessor and the existing lessee, and takes free of the existing lease contract.
(d) 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.
(P.A. 02-131, S. 31.)
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Sec. 42a-2A-403. Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights.
