(1) Except as otherwise provided in § 8.2A-306, a creditor of a lessee takes subject to the lease contract.

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Terms Used In Virginia Code 8.2A-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 (§ Virginia Code 8.2A-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, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Virginia Code 8.2A-103
  • Lease contract: means the total legal obligation that results from the lease agreement as affected by this title and any other applicable rules of law. See Virginia Code 8.2A-103
  • Leasehold interest: means the interest of the lessor or the lessee under a lease contract. See Virginia Code 8.2A-103
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Virginia Code 8.2A-103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Virginia Code 8.2A-103

(2) Except as otherwise provided in subsection (3) of this section and in §§ 8.2A-306 and 8.2A-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 §§ 8.9A-317, 8.9A-321, and 8.9A-323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.

1991, c. 536; 2000, c. 1007.