2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A3 - Effect of Lease Contract
Section 2A304 - Subsequent lease of goods by lessor

     § 2A304.  Subsequent lease of goods by lessor.
        (a)  General rule.--Subject to section 2A303 (relating to
     alienability of party's interest under lease contract or of
     lessor's residual interest in goods; delegation of performance;
     transfer of rights), 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 (b) and section 2A527(d) (relating to
     lessor's rights to dispose of goods), 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:
            (1)  the lessor's transferor was deceived as to the
        identity of the lessor;
            (2)  the delivery was in exchange for a check which is
        later dishonored;
            (3)  it was agreed that the transaction was to be a "cash
        sale"; or
            (4)  the delivery was procured through fraud punishable
        as larcenous under the criminal law.
        (b)  Merchants regularly dealing in goods.--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 that lessor 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 existing lessee's
     rights to the goods, and takes free of the existing lease
     contract.
        (c)  Goods covered by certificate of title.--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 Commonwealth or of another jurisdiction
     takes no greater rights than those provided both by this section
     and by the certificate of title statute.

        Cross References.  Section 2A304 is referred to in sections
     2A104, 2A105, 7209, 7503 of this title.