§ 25-2A-308. Special rights of creditors. - North Carolina Statutes

§25‑2A‑308.  Special rights of creditors.

(1)        A creditor of alessor in possession of goods subject to a lease contract may treat the leasecontract as void if as against the creditor retention of possession by thelessor is fraudulent under any statute or rule of law, but retention ofpossession in good faith and current course of trade by the lessor for acommercially reasonable time after the lease contract becomes enforceable isnot fraudulent.

(2)        Nothing in thisArticle impairs the rights of creditors of a lessor if the lease contract (a)becomes enforceable, not in current course of trade but in satisfaction of oras security for a preexisting claim for money, security, or the like, and (b)is made under circumstances which under any statute or rule of law apart fromthis Article would constitute the transaction a fraudulent transfer or voidablepreference.

(3)        A creditor of aseller may treat a sale or an identification of goods to a contract for sale asvoid if as against the creditor retention of possession by the seller isfraudulent under any statute or rule of law, but retention of possession of thegoods pursuant to a lease contract entered into by the seller as lessee and thebuyer as lessor in connection with the sale or identification of the goods isnot fraudulent if the buyer bought for value and in good faith. (1993,c. 463, s. 1.)