§ 2-A-209 — Lessee Under Finance Lease as Beneficiary of Supply Contract

Section 2-A-209. Lessee Under Finance Lease as Beneficiary of Supply\n Contract.\n (1) The benefit of a supplier's promises to the lessor under the\nsupply contract and of all warranties, whether express or implied,\nincluding those of any third party provided in connection with or as\npart of the supply contract, extends to the lessee to the extent of the\nlessee's leasehold interest under a finance lease related to the supply\ncontract, but is subject to the terms of the warranty and of the supply\ncontract and all defenses or claims arising therefrom.\n (2) The extension of the benefit of a supplier's promises and of\nwarranties to the lessee under subsection (1) does not: (i) modify the\nrights and obligations of the parties to the supply contract, whether\narising therefrom or otherwise, or (ii) impose any duty or liability\nunder the supply contract on the lessee.\n (3) Any modification or rescission of the supply contract by the\nsupplier and lessor is effective between the supplier and the lessee\nunless, before the modification or rescission, the supplier has received\nnotice that the lessee has entered into a finance lease related to the\nsupply contract. If the modification or rescission is effective between\nthe supplier and the lessee, the lessor is deemed to have assumed, in\naddition to the obligations of the lessor to the lessee under the lease\ncontract, promises of the supplier to the lessor and warranties that\nwere so modified or rescinded as they existed and were available to the\nlessee before modification or rescission.\n (4) In addition to the extension of the benefit of the supplier's\npromises and of warranties to the lessee under subsection (1), the\nlessee retains all rights which the lessee may have against the supplier\nthat arise from any agreement between the lessee and supplier or under\nother law.\n