§ 2-A-308 — Special Rights of Creditors

Section 2-A-308. Special Rights of Creditors.\n (1) A creditor of a lessor in possession of goods subject to a lease\ncontract may treat the lease contract as void if as against the creditor\nretention of possession by the lessor is fraudulent under any statute or\nrule of law, but retention of possession in good faith and current\ncourse of trade by the lessor for a commercially reasonable time after\nthe lease contract becomes enforceable is not fraudulent.\n (2) Nothing in this Article impairs the rights of creditors of a\nlessor if the lease contract (a) becomes enforceable, not in current\ncourse of trade but in satisfaction of or as security for a preexisting\nclaim for money, security, or the like, and (b) is made under\ncircumstances which under any statute or rule of law apart from this\nArticle would constitute the transaction a fraudulent transfer or\nvoidable preference.\n (3) A creditor of a seller may treat a sale or an identification of\ngoods to a contract for sale as void if as against the creditor\nretention of possession by the seller is fraudulent under any statute or\nrule of law, but retention of possession of the goods pursuant to a\nlease contract entered into by the seller as lessee and the buyer as\nlessor in connection with the sale or identification of the goods is not\nfraudulent if the buyer bought for value and in good faith.\n