2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A3 - Effect of Lease Contract
Section 2A305 - Sale or sublease of goods by lessee

     § 2A305.  Sale or sublease of goods by lessee.
        (a)  General rule.--Subject to the provisions of 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 buyer or sublessee from
     the lessee of goods under an existing lease contract obtains, to
     the extent of the interest transferred, the leasehold interest
     in the goods that the lessee had or had power to transfer, and
     except as provided in subsection (b) and section 2A511(d)
     (relating to merchant lessee's duties as to rightfully rejected
     goods), takes subject to the existing lease contract. A lessee
     with a voidable leasehold interest has power to transfer a good
     leasehold interest to a good faith buyer for value or a good
     faith sublessee for value, but only to the extent set forth in
     the preceding sentence. When goods have been delivered under a
     transaction of lease, the lessee has that power even though:
            (1)  the lessor was deceived as to the identity of the
        lessee;
            (2)  the delivery was in exchange for a check which is
        later dishonored; or
            (3)  the delivery was procured through fraud punishable
        as larcenous under the criminal law.
        (b)  Merchants regularly dealing in goods.--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 goods were entrusted by the
     lessor obtains, to the extent of the interest transferred, all
     of the lessor's and lessee's rights to the goods, and takes free
     of the existing lease contract.
        (c)  Goods covered by certificate of title.--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 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 2A305 is referred to in sections
     2A104, 2A105, 7209, 7503 of this title.