400.2A-305. Sale or sublease of goods by lessee. - Missouri Statutes

Sale or sublease of goods by lessee.

400.2A-305. (1) Subject to the provisions of section400.2A-303, a buyer or sublessee from the lessee of goods underan existing lease contract obtains, to the extent of the interesttransferred, the leasehold interest in the goods that the lesseehad or had power to transfer, and except as provided insubsection (2) and section 400.2A-511(4), takes subject to theexisting lease contract. A lessee with a voidable leaseholdinterest has power to transfer a good leasehold interest to agood faith buyer for value or a good faith sublessee for value,but only to the extent set forth in the preceding sentence. Whengoods have been delivered under a transaction of lease the lesseehas that power even though:

(a) the lessor was deceived as to the identity of thelessee;

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

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

(2) A buyer in the ordinary course of business or asublessee in the ordinary course of business from a lessee who isa merchant dealing in goods of that kind to whom the goods wereentrusted by the lessor obtains, to the extent of the interesttransferred, all of the lessor's and lessee's rights to thegoods, and takes free of the existing lease contract.

(3) A buyer or sublessee from the lessee 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)