§ 4-2.5-209 — Lessee under finance lease as beneficiary of supply contract

Colorado § 4-2.5-209

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

(1)
The benefit of the supplier's promises to the lessor under the supply contract and
of all warranties, whether express or implied, including those of any third party
provided in connection with or as a part of the supply contract, extends to the
lessee to the extent of the lessee's leasehold interest under a finance lease related
to the supply contract, but is subject to the terms of the warranty and of 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 (section 4-2.5-209 (1)) does not: (i) modify the rights and obligations of
the parties to the supply contract, whether arising therefrom or otherwise, or (ii)
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 is effective between the supplier and the lessee unless, before the
modification or rescission, the supplier has received notice that the lessee has
entered into a finance lease related to the supply contract. If the modification or
rescission is effective between the supplier and the lessee, the lessor is deemed to
have assumed, in addition to the obligations of the lessor to the lessee under the
lease contract, promises of the supplier to the lessor and warranties that were so
modified or rescinded as they existed and were available to the lessee before
modification or rescission.

(4) In addition to the extension of the benefit of the supplier's promises and
of warranties to the lessee under subsection (1) of this section, the lessee retains all
rights that the lessee may have against the supplier which arise from an agreement
between the lessee and the supplier or under other law.

Legislative History

Source: L. 91: Entire article added, p. 282, � 1, effective July 1, 1992.