§ 2A209. Lessee under finance lease as beneficiary of supply
(a) General rule.--The benefit of a supplier's promises to the lessor under the supply contract and of all warranties, whether express or implied, including those of any third party provided in connection with or as part of the supply contract extends to the lessee to the extent of the lessee's leasehold interest under a finance lease related to the supply contract, but subject to the terms of the warranty and of the supply contract and all defenses or claims arising therefrom.
(b) Effect of extension of benefits.--The extension of the benefit of a supplier's promises and warranties to the lessee (subsection (a)) does not:
(1) modify the rights and obligations of the parties to the supply contract, whether arising therefrom or otherwise; or
(2) impose any duty or liability under the supply contract on the lessee.
(c) Modification or rescission by supplier and lessor.--Any modification or rescission of the supply contract by the supplier and the lessor is effective between the supplier and the lessee unless, before the modification or rescission, the supplier has received notice that the lessee has entered into a finance lease related to the supply contract. If the modification or rescission is effective between the supplier and the lessee, the lessor is deemed to have assumed, in addition to the obligations of the lessor to the lessee under the lease contract, promises of the supplier to the lessor and warranties that were so modified or rescinded as they existed and were available to the lessee before modification or rescission.
(d) Additional rights of lessee.--In addition to the extension of the benefit of the supplier's promises and of warranties to the lessee under subsection (a), the lessee retains all rights that the lessee may have against the supplier which arise from an agreement between the lessee and the supplier or under other law.Section: Previous 2a202 2a203 2a204 2a205 2a206 2a207 2a208 2a209 2a210 2a211 2a212 2a213 2a214 2a215 2a216 Next
Last modified: October 8, 2016