§ 25-2A-209. Lessee under finance lease as beneficiary of supply contract. - North Carolina Statutes

§25‑2A‑209.  Lessee under finance lease as beneficiary of supplycontract.

(1)        The benefit of asupplier's promises to the lessor under the supply contract and of allwarranties, whether express or implied, including those of any third partyprovided in connection with or as part of the supply contract, extends to thelessee to the extent of the lessee's leasehold interest under a finance leaserelated to the supply contract, but is subject to the terms of the warranty andof the supply contract and all defenses or claims arising therefrom.

(2)        The extension ofthe benefit of a supplier's promises and of warranties to the lessee (G.S. 25‑2A‑209(1))does not: (i) modify the rights and obligations of the parties to the supplycontract, whether arising therefrom or otherwise, or (ii) impose any duty orliability under the supply contract on the lessee.

(3)        Any modification orrescission of the supply contract by the supplier and the lessor is effectivebetween the supplier and the lessee unless, before the modification orrescission, the supplier has received notice that the lessee has entered into afinance lease related to the supply contract.  If the modification orrescission is effective between the supplier and the lessee, the lessor isdeemed to have assumed, in addition to the obligations of the lessor to thelessee under the lease contract, promises of the supplier to the lessor andwarranties that were so modified or rescinded as they existed and wereavailable to the lessee before modification or rescission.

(4)        In addition to theextension of the benefit of the supplier's promises and of warranties to thelessee under subsection (1) of this section, the lessee retains all rights thatthe lessee may have against the supplier which arise from an agreement betweenthe lessee and the supplier or under other law. (1993, c. 463, s. 1.)