Indiana § 26-1-2.1-305 Sale or sublease of goods by lessee

Indiana Statutes

§ 26-1-2.1-305 — Sale or sublease of goods by lessee

Indiana § 26-1-2.1-305

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 2.1Leases

This text of Indiana § 26-1-2.1-305 (Sale or sublease of goods by lessee) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-2.1-305 (2026).

Text

(1)Subject to the provisions of IC 26-1-2.1-303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee had or had power to transfer, and except as provided in subsection (2) and IC 26-1-2.1-511(4), takes subject to the existing lease contract. A lessee with a voidable leasehold interest has power to transfer a good leasehold interest to a good faith buyer for value or a good faith sublessee for value, but only to the extent set forth in the preceding sentence. When goods have been delivered under a transaction of lease the lessee has that power even though:

(a)the lessor was deceived as to the identity of the lessee;

(b)the delivery was in exchange for a check

Free access — add to your briefcase to read the full text and ask questions with AI

(1) Subject to the provisions of IC 26-1-2.1-303, a buyer or sublessee from the lessee of goods under an
existing lease contract obtains, to the extent of the interest transferred,
the leasehold interest in the goods that the lessee had or had power to
transfer, and except as provided in subsection (2) and IC 26-1-2.1-511(4), takes subject to the existing lease contract. A lessee
with a voidable leasehold interest has power to transfer a good
leasehold interest to a good faith buyer for value or a good faith
sublessee for value, but only to the extent set forth in the preceding
sentence. When goods have been delivered under a transaction of lease
the lessee has that power even though:
(a) the lessor was deceived as to the identity of the lessee;
(b) the delivery was in exchange for a check which is later
dishonored; or
(c) the delivery was procured through fraud punishable as
larcenous under the criminal law.
(2) A buyer in the ordinary course of business or a sublessee in the
ordinary course of business from a lessee who is a merchant dealing in
goods of that kind to whom the goods were entrusted by the lessor
obtains, to the extent of the interest transferred, all of the lessor's and
lessee's rights to the goods, and takes free of the existing lease contract.
(3) A buyer or sublessee from the lessee of goods that are subject to
an existing lease contract and are covered by a certificate of title issued
under a statute of this state or of another jurisdiction takes no greater
rights than those provided both by this section and by the certificate of
title statute.