2006 New York Code - Subsequent Lease Of Goods By Lessor.

 
  Section 2-A-304. Subsequent Lease of Goods by Lessor.
    (1)  Subject  to Section 2-A-303, a subsequent lessee from a lessor of
  goods under an existing lease contract obtains, to  the  extent  of  the
  leasehold interest transferred, the leasehold interest in the goods that
  the  lessor  had  or  had  power to transfer, and, except as provided in
  subsection (2) and Section 2-A-527(4), takes  subject  to  the  existing
  lease  contract.  A  lessor  with voidable title has power to transfer a
  good leasehold interest to a good faith subsequent lessee for value, but
  only to the extent set forth in the preceding sentence.  If  goods  have
  been  delivered  under  a  transaction  of purchase, the lessor has that
  power 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";
             or
         (d) 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 a prior lessee before the interest of the subsequent
  lessee became enforceable against that lessor obtains, to the extent  of
  the  leasehold  interest transferred, all of that lessor's and the prior
  lessee'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 of another jurisdiction takes no
  greater  rights  than  those  provided  both  by this section and by the
  certificate of title statute.