8.2A-209 - A-209. Lessee under finance lease as beneficiary of supply contract. - Virginia Statutes

§ 8.2A-209. Lessee under finance lease as beneficiary of supply contract.

(1) The benefit of a supplier's promises to the lessor including those of anythird party provided in connection with or as part of the supply contract andof all warranties, whether express or implied, under the supply contract,extends to the lessee to the extent of the lessee's leasehold interest undera finance lease related to the supply contract, but is subject to the termsof the warranty and of the supply contract and all defenses or claims arisingtherefrom.

(2) The extension of the benefit of a supplier's promises and of warrantiesto the lessee (§ 8.2A-209 (1)) does not: (i) modify the rights andobligations of the parties to the supply contract, whether arising therefromor otherwise, or (ii) impose any duty or liability under the supply contracton the lessee.

(3) Any modification or rescission of the supply contract by the supplier andthe lessor is effective between the supplier and the lessee unless, beforethe modification or rescission, the supplier has received notice that thelessee has entered into a finance lease related to the supply contract. Ifthe modification or rescission is effective between the supplier and thelessee, the lessor is deemed to have assumed, in addition to the obligationsof the lessor to the lessee under the lease contract, promises of thesupplier to the lessor and warranties that were so modified or rescinded asthey existed and were available to the lessee before modification orrescission.

(4) In addition to the extension of the benefit of the supplier's promisesand of warranties to the lessee under subsection (1) of this section, thelessee retains all rights that the lessee may have against the supplier whicharise from an agreement between the lessee and the supplier or under otherlaw.

(1991, c. 536.)