Section 2-A-310. Lessor's and Lessee's Rights When Goods Become Accessions  


Latest version.
  • (1) Goods are "accessions" when they are installed in  or  affixed  to
      other goods.
        (2)  The  interest  of  a  lessor  or  a lessee under a lease contract
      entered into before the goods  became  accessions  is  superior  to  all
      interests in the whole except as stated in subsection (4).
        (3)  The  interest  of  a  lessor  or  a lessee under a lease contract
      entered into at the  time  or  after  the  goods  became  accessions  is
      superior  to  all subsequently acquired interests in the whole except as
      stated in subsection (4) but is subordinate to interests  in  the  whole
      existing  at  the time the lease contract was made unless the holders of
      such interests in the whole have in writing consented to  the  lease  or
      disclaimed an interest in the goods as part of the whole.
        (4)  The  interest  of  a  lessor  or  a lessee under a lease contract
      described in subsection (2) or (3) is subordinate to the interest of:
             (a) a buyer in the ordinary course of business or a lessee in the
                 ordinary course of business of  any  interest  in  the  whole
                 acquired after the goods became accessions; or
             (b) a  creditor  with  a security interest in the whole perfected
                 before the lease contract was made to  the  extent  that  the
                 creditor  makes  subsequent advances without knowledge of the
                 lease contract.
        (5) When under subsections (2) or (3) and (4) a lessor or a lessee  of
      accessions  holds  an  interest that is superior to all interests in the
      whole, the  lessor  or  the  lessee  may  (a)  on  default,  expiration,
      termination,  or  cancellation  of the lease contract by the other party
      but subject to the provisions of the lease contract and this Article, or
      (b) if necessary to enforce his or her other rights and  remedies  under
      this  Article,  remove  the  goods from the whole, free and clear of all
      interests in the whole, but he or she must reimburse any  holder  of  an
      interest  in  the  whole who is not the lessee and who has not otherwise
      agreed for the cost of repair of any physical injury  but  not  for  any
      diminution  in  value  of  the  whole caused by the absence of the goods
      removed or by any necessity for replacing them.  A  person  entitled  to
      reimbursement  may  refuse  permission to remove until the party seeking
      removal gives adequate security for the performance of this obligation.