§ 4-2.5-310 — Lessor's and lessee's rights when goods become accessions

Colorado § 4-2.5-310

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

Text

(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) of this section.

(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) of this section 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) of this section 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) of this section 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.

Legislative History

Source: L. 91: Entire article added, p. 296, � 1, effective July 1, 1992.