400.2A-304. Subsequent lease of goods by lessor. - Missouri Statutes

Subsequent lease of goods by lessor.

400.2A-304. (1) Subject to section 400.2A-303, asubsequent lessee from a lessor of goods under an existing leasecontract obtains, to the extent of the leasehold interesttransferred, the leasehold interest in the goods that the lessorhad or had power to transfer, and except as provided insubsection (2) and section 400.2A-527(4), takes subject to theexisting lease contract. A lessor with voidable title has powerto transfer a good leasehold interest to a good faith subsequentlessee for value, but only to the extent set forth in thepreceding sentence. If goods have been delivered under atransaction of purchase, the lessor has that power even though:

(a) the lessor's transferor was deceived as to the identityof the lessor;

(b) the delivery was in exchange for a check which is laterdishonored;

(c) it was agreed that the transaction was to be a "cashsale"; or

(d) the delivery was procured through fraud punishable aslarcenous under the criminal law.

(2) A subsequent lessee in the ordinary course of businessfrom a lessor who is a merchant dealing in goods of that kind towhom the goods were entrusted by the existing lessee of thatlessor before the interest of the subsequent lessee becameenforceable against that lessor obtains, to the extent of theleasehold interest transferred, all of that lessor's and theexisting lessee's rights to the goods, and takes free of theexisting lease contract.

(3) A subsequent lessee from the lessor of goods that aresubject to an existing lease contract and are covered by acertificate of title issued under a statute of this state or ofanother jurisdiction takes no greater rights than those providedboth by this section and by the certificate of title statute.

(L. 1992 S.B. 448)