§ 6A-2.1-310 - Lessor's and lessee's rights when goods become accessions.
SECTION 6A-2.1-310
§ 6A-2.1-310 Lessor's and lessee's rightswhen goods become accessions. – (1) Goods are "accessions" when they are installed in or affixed to other goods.
(2) The interest of a lessor or a lessee under a leasecontract entered into before the goods became accessions is superior to allinterests in the whole except as stated in subsection (4).
(3) The interest of a lessor or a lessee under a leasecontract entered into at the time or after the goods became accessions issuperior to all subsequently acquired interests in the whole except as statedin subsection (4), but is subordinate to interests in the whole existing at thetime the lease contract was made unless the holders of such interests in thewhole have in writing consented to the lease or disclaimed an interest in thegoods as part of the whole.
(4) The interest of a lessor or a lessee under a leasecontract described in subsection (2) or (3) is subordinate to the interest of:
(a) A buyer in the ordinary course of business or a lessee inthe ordinary course of business of any interest in the whole acquired after thegoods became accessions; or
(b) A creditor with a security interest in the wholeperfected before the lease contract was made to the extent that the creditormakes subsequent advances without knowledge of the lease contract.
(5) When under subsections (2) or (3) and (4) a lessor or alessee of accessions holds an interest that is superior to all interests in thewhole, the lessor or the lessee may (a) on default, expiration, termination, orcancellation of the lease contract by the other party but subject to theprovisions of the lease contract and this chapter, or (b) if necessary toenforce his or her other rights and remedies under this chapter, remove thegoods from the whole, free and clear of all interests in the whole, but he orshe must reimburse any holder of an interest in the whole who is not the lesseeand who has not otherwise agreed for the cost of repair of any physical injurybut not for any diminution in value of the whole caused by the absence of thegoods removed or by any necessity for replacing them. A person entitled toreimbursement may refuse permission to remove until the party seeking removalgives adequate security for the performance of this obligation.