70A-2a-308. Special rights of creditors.
(1) A creditor of a lessor in possession of goods subject to a lease contract may treat the
lease contract as void if as against the creditor retention of possession by the lessor is fraudulent
or voids the lease contract under any statute or rule of law, but retention of possession in good
faith and current course of trade by the lessor for a commercially reasonable time after the lease
contract becomes enforceable is not fraudulent and does not void the lease contract.
(2) Nothing in this chapter impairs the rights of creditors of a lessor if the lease contract is
made under circumstances which under any statute or rule of law apart from the chapter would
constitute the transaction a fraudulent transfer or voidable preference.
(3) A creditor of a seller may treat a sale or an identification of goods to a contract for
sale as void if as against the creditor retention of possession by the seller is fraudulent under any
statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered
into by the seller as lessee and the buyer as lessor in connection with the sale or identification of
the goods is not fraudulent if the buyer bought for value and in good faith.
Enacted by Chapter 197, 1990 General Session
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Last revised: Thursday, May 28, 2009