(1) Except as otherwise provided in Section 70A-2a-306, a creditor of a lessee takes subject to the lease contract.

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Terms Used In Utah Code 70A-2a-307

  • Contract: A legal written agreement that becomes binding when signed.
  • Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures. See Utah Code 70A-2a-103
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lease: means a transfer of the right to possession and use of goods for a term, in return for consideration. See Utah Code 70A-2a-103
  • Lease contract: means the total legal obligation that results from the lease agreement as affected by this chapter and any other applicable rules of law. See Utah Code 70A-2a-103
  • Leasehold interest: means the interest of the lessor or the lessee under a lease contract. See Utah Code 70A-2a-103
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Utah Code 70A-2a-103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Utah Code 70A-2a-103
(2) Except as otherwise provided in Subsection (3) and in Sections 70A-2a-306 and 70A-2a-308, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.
(3) Except as otherwise provided in Sections 70A-9a-317, 70A-9a-321, and 70A-9a-323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.