§ 26-1-2.1-308 — Special rights of creditors

Indiana § 26-1-2.1-308

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

Text

(1) A creditor of a lessor in possession of
goods subject to a lease contract may treat the lease contract as void if
as against the creditor retention of possession by the lessor is
fraudulent under any statute or rule of law, but retention of possession
in good faith and current course of trade by the lessor for a
commercially reasonable time after the lease contract becomes
enforceable is not fraudulent.
(2) Nothing in IC 26-1-2.1 impairs the rights of creditors of a lessor
if the lease contract:
(a) becomes enforceable, not in current course of trade but in
satisfaction of or as security for a pre-existing claim for money,
security, or the like; and
(b) is made under circumstances which under any statute or rule
of law apart from IC 26-1-2.1 would constitute the transaction a
fraudulent transfer or voidable preference.
(3) A creditor of a seller may treat a sale or an identification of
goods to a contract for sale as void if as against the creditor retention
of possession by the seller is fraudulent under any statute or rule of law,
but retention of possession of the goods pursuant to a lease contract
entered into by the seller as lessee and the buyer as lessor in connection
with the sale or identification of the goods is not fraudulent if the buyer
bought for value and in good faith.

Legislative History

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