(1) Except as otherwise provided in Section 36-2A-306, a creditor of a lessee takes subject to the lease contract.
(2) Except as otherwise provided in subsections (3) and (4) and in Sections 36-2A-306 and 36-2A-308, a creditor of a lessor takes subject to the lease contract unless:
(a) the creditor holds a lien that attached to the goods before the lease contract became enforceable,
(b) the creditor holds a security interest in the goods and the lessee did not give value and receive delivery of the goods without knowledge of the security interest; or
(c) the creditor holds a security interest in the goods which was perfected (Section 36-9-303) before the lease contract became enforceable.
(3) A lessee in the ordinary course of business takes the leasehold interest free of a security interest in the goods created by the lessor even though the security interest is perfected (Section 36-9-303) and the lessee knows of its existence.
(4) A lessee other than a lessee in the ordinary course of business takes the leasehold interest free of a security interest to the extent that it secures future advances made after the secured party acquires knowledge of the lease or more than forty-five days after the lease contract becomes enforceable, whichever first occurs, unless the future advances are made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the forty-five-day period.
HISTORY: 2001 Act No. 67, Section 2.