554.13305 Sale or sublease of goods by lessee. 1. Subject to the provisions of section 554.13303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, theleasehold interest in the goods that the lessee had or had power to transfer, and except asprovided in subsection 2 and section 554.13511, subsection 4, takes subject to the existinglease contract. A lessee with a voidable leasehold interest has power to transfer a goodleasehold interest to a good faith buyer for value or a good faith sublessee for value, but onlyto the extent set forth in the preceding sentence. When goods have been delivered under atransaction of lease the lessee has that power even though: a. the lessor was deceived as to the identity of the lessee;b. the delivery was in exchange for a check which is later dishonored; orc. the delivery was procured through fraud punishable as larcenous under the criminal law. 2. A buyer in the ordinary course of business or a sublessee in the ordinary course of business from a lessee who is a merchant dealing in goods of that kind to whom the goodswere entrusted by the lessor obtains, to the extent course of business or a sublessee in the ordinary course of business from a lessee who is a merchant dealing in goods of that kind to whom the goodswere entrusted by the lessor obtains, to the extent of the interest transferred, all of the lessor’sand lessee’s rights to the goods, and takes free of the existing lease contract. 3. A buyer or sublessee from the lessee 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, §39Referred to in §554.7209, 554.7503, 554.13104, 554.13105 Sat Dec 23 11:03:17 2023 Iowa Code 2024, Section 554.13305 (24, 0)
Iowa Legal Code