70A-2a-209 - Lessee under finance lease as beneficiary of supply contract. - Utah Statutes

70A-2a-209. Lessee under finance lease as beneficiary of supply contract.
(1) The benefit of a supplier's promises to the lessor under the supply contract and of allwarranties, whether express or implied, including those of any third party provided in connectionwith or as part of the supply contract, extends to the lessee to the extent of the lessee's leaseholdinterest under a finance lease related to the supply contract, but is subject to the terms of thewarranty and the supply contract and all defenses or claims arising therefrom.
(2) The extension of the benefit of a supplier's promises and of warranties to the lessee asprovided in Subsection (1) does not:
(a) modify the rights and obligations of the parties to the supply contract, whether arisingtherefrom or otherwise; or
(b) impose any duty or liability under the supply contract on the lessee.
(3) Any modification or rescission of the supply contract by the supplier and the lessor iseffective between the supplier and the lessee unless, prior to the modification or rescission, thesupplier has received notice that the lessee has entered into a finance lease related to the supplycontract. If the modification or rescission is effective between the supplier and the lessee, thelessor is considered to have assumed, in addition to the obligations of the lessor to the lesseeunder the lease contract, promises of the supplier to the lessor and warranties that were somodified or rescinded as they existed and were available to the lessee before modification orrescission.
(4) In addition to the extension of the benefit of the supplier's promises and warranties tothe lessee under Subsection (1), the lessee retains all rights and remedies which the lessee mayhave against the supplier that arise from any agreement between the lessee and the supplier orfrom any other law.

Amended by Chapter 237, 1993 General Session