8.2A-310 - A-310. Lessor's and lessee's rights when goods become accessions.
§ 8.2A-310. Lessor's and lessee's rights when goods become accessions.
(1) Goods are "accessions" when they are installed in or affixed to othergoods.
(2) The interest of a lessor or a lessee under a lease contract entered intobefore the goods became accessions is superior to all interests in the wholeexcept as stated in subsection (4) of this section.
(3) The interest of a lessor or a lessee under a lease contract entered intoat the time or after the goods became accessions is superior to allsubsequently acquired interests in the whole except as stated in subsection(4) of this section but is subordinate to interests in the whole existing atthe time the lease contract was made unless the holders of such interests inthe whole have in writing consented to the lease or disclaimed an interest inthe goods as part of the whole.
(4) The interest of a lessor or a lessee under a lease contract described insubsection (2) or (3) of this section is subordinate to the interest of:
(a) A buyer in the ordinary course of business or a lessee in the ordinarycourse of business of any interest in the whole acquired after the goodsbecame accessions; or
(b) A creditor with a security interest in the whole perfected before thelease contract was made to the extent that the creditor makes subsequentadvances without knowledge of the lease contract.
(5) When under subsections (2) or (3) and (4) of this section a lessor or alessee of accessions holds an interest that is superior to all interests inthe whole, the lessor or the lessee may (a) on default, expiration,termination, or cancellation of the lease contract by the other party butsubject to the provisions of the lease contract and this title, or (b) ifnecessary to enforce his or her other rights and remedies under this title,remove the goods from the whole, free and clear of all interests in thewhole, but he or she shall reimburse any holder of an interest in the wholewho is not the lessee and who has not otherwise agreed for the cost of repairof any physical injury but not for any diminution in value of the wholecaused by the absence of the goods removed or by any necessity for replacingthem. A person entitled to reimbursement may refuse permission to removeuntil the party seeking removal gives adequate security for the performanceof this obligation.
(1991, c. 536.)