Utah § 70A-2a-304 Subsequent lease of goods by lessor.

Utah Statutes

§ 70A-2a-304 — Subsequent lease of goods by lessor.

Utah § 70A-2a-304

Title 70AUniform Commercial Code

Ch. 70A-2aUniform Commercial Code - Leases

Part 70A-2a-3Contract, Liens, Rights

This text of Utah § 70A-2a-304 (Subsequent lease of goods by lessor.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 70A-2a-304 (2026).

Text

(1)Subject to Section 70A-2a-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in Subsection (2) and Subsection 70A-2a-527(4), takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase, the lessor has that power even though:

(1)(a) the lessor's transferor was deceived as to the identity of the lessor;

(1)(b) the delivery was in exchange for a check which is later

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

(1) Subject to Section 70A-2a-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in Subsection (2) and Subsection 70A-2a-527(4), takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase, the lessor has that power even though:

(1)(a) the lessor's transferor was deceived as to the identity of the lessor;
(1)(b) the delivery was in exchange for a check which is later dishonored;
(1)(c) it was agreed that the transaction was to be a "cash sale;" or
(1)(d) the delivery was procured through fraud punishable as larcenous under the criminal law.
(2) A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of that lessor before the interest of the subsequent lessee became enforceable against the lessor obtains, to the extent of the leasehold interest transferred, all of that lessor's and the existing lessee's rights to the goods, and takes free of the existing lease contract.
(3) A subsequent lessee from the lessor 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.