§ 26-1-2.1-209 — Lessee under finance lease as beneficiary of supply contract

Indiana § 26-1-2.1-209

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: Leases

Text

(1) The benefit of a 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 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 (IC 26-1-2.1-209(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 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so modified or rescinded as they existed and were available to the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), 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

As added by P.L.189-1991, SEC.3.