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355.2A-209 Lessee under finance lease as beneficiary of supply contract.
(1)
(2)
(3)
(4)
The benefit of a supplier's promises to the lessor under the supply contract and of all
warranties, whether express or implied, including those of any third party provided
in connection with or as part of the supply contract, extends to the lessee to the
extent of the lessee's leasehold interest under a finance lease related to the supply
contract, but is subject to the terms of the warranty and of the supply contract and
all defenses or claims arising therefrom.
The extension of the benefit of a supplier's promises and of warranties to the lessee
(subsection (1) of this section) does not:
(a) Modify the rights and obligations of the parties to the supply contract, whether
arising therefrom or otherwise, or
(b) Impose any duty or liability under the supply contract on the lessee.
Any modification or rescission of the supply contract by the supplier and the lessor
is effective between the supplier and the lessee unless, before the modification or
rescission, the supplier has received notice that the lessee has entered into a finance
lease related to the supply contract. If the modification or rescission is effective
between the supplier and the lessee, the lessor is deemed to have assumed, in
addition to the obligations of the lessor to the lessee under the lease contract,
promises of the supplier to the lessor and warranties that were so modified or
rescinded as they existed and were available to the lessee before modification or
rescission.
In addition to the extension of the benefit of the supplier's promises and of
warranties to the lessee under subsection (1), the lessee retains all rights that the
lessee may have against the supplier which arise from an agreement between the
lessee and the supplier or under other law.
Effective: January 1, 1993
History: Amended 1992 Ky. Acts ch. 116, sec. 3, effective January 1, 1993 -- Created
1990 Ky. Acts ch. 363, sec. 18, effective January 1, 1991.
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