As Amended
SEC. 75-2A-307. Priority of liens arising by attachment or levy on, security interests in, and other claims to goods.
(1) Except as otherwise provided in Section 75-2A-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 75-2A-306 and 75-2A-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 75-9-303) 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 75-9-303) 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 (45) 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.
SOURCES: Laws, 1994, ch. 445, Sec. 1, eff from and after July 1, 1994