§ 554.13304

554.13304 Subsequent lease of goods by lessor. 1. Subject to section 554.13303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, theleasehold interest in the goods that the lessor had or had power to transfer, and except asprovided in subsection 2 and section 554.13527, subsection 4, takes subject to the existinglease contract. A lessor with voidable title has power to transfer a good leasehold interestto a good faith subsequent lessee for value, but only to the extent set forth in the precedingsentence. If goods have been delivered under a transaction of purchase, the lessor has thatpower even though: a. the lessor’s transferor was deceived as to the identity of the lessor;b. the delivery was in exchange for a check which is later dishonored;c. it was agreed that the transaction was to be a 'cash sale'; ord. the delivery was procured through fraud punishable as larcenous under the criminal law. 2. A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of thatlessor before the

. A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of thatlessor before the interest of the subsequent lessee became enforceable against that lessorobtains, to the extent of the leasehold interest transferred, all of that lessor’s and the existinglessee’s rights to the goods, and takes free of the existing lease contract. 3. A subsequent lessee from the lessor of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this state or ofanother jurisdiction takes no greater rights than those provided both by this section and bythe certificate of title statute. 94 Acts, ch 1052, §38Referred to in §554.7209, 554.7503, 554.13104, 554.13105 Sat Dec 23 11:03:16 2023 Iowa Code 2024, Section 554.13304 (24, 0)