§ 41-02.1-18 — (2A-209) Lessee under finance lease as beneficiary of supply contract

North Dakota § 41-02.1-18

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-02.1: 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 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
subject to the terms of the warranty and of the supply contract and all of the supplier's
defenses or claims arising therefrom.
2. The extension of the benefit of the supplier's promises and warranties to the lessee
(subsection 1 of section 41-02.1-09) does not modify the rights and obligations of the
parties to the supply contract or 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. Whenever a modification or rescission of the
supply contract is effective between the supplier and the lessee, the lessor, in addition
to the obligations of the lessor under the lease contract, is treated as having assumed
all obligations of the supplier and warranties which were so modified or rescinded as
they existed or were available to the lessee prior to 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 any agreement between the lessee and the
supplier or from any other law.