Nebraska Uniform Commercial Code 2A-307

UCC 2A-307

2A-307.

Priority of liens arising by attachment or levy on, security interests in, and other claims to goods.

(1) Except as otherwise provided in section 2A-306, a creditor of a lessee takes subject to the lease contract.

(2) Except as otherwise provided in subsection (3) and in sections 2A-306 and 2A-308, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.

(3) Except as otherwise provided in sections 9-317, 9-321, and 9-323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.

Source

Annotations

  • COMMENT

  • Uniform Statutory Source: None for subsection (1). Subsection (2) is derived from section 9-317.

  • Changes: The provisions of section 9-317 were incorporated, and modified to reflect leasing terminology and the basic concepts reflected in this article.

  • Purposes:

  • 1. Subsection (1) states a general rule of priority that a creditor of the lessee takes subject to the lease contract. The term lessee (section 2A-103(1)(n)) includes sublessee. Therefor, this subsection not only covers disputes between the prime lessor and a creditor of the prime lessee but also disputes between the prime lessor, or the sublessor, and a creditor of the sublessee. Section 2A-301 official comment 3(g). Further, by using the term creditor (section 1-201(12)), this subsection will cover disputes with a general creditor, a secured creditor, a lien creditor, and any representative of creditors. Section 2A-103(4).

  • 2. Subsection (2) states a general rule of priority that a creditor of a lessor takes subject to the lease contract. Note the discussion above with regard to the scope of these rules. Section 2A-301 official comment 3(g). Thus, the section will not only cover disputes between the prime lessee and a creditor of the prime lessor but also disputes between the prime lessee, or the sublessee, and a creditor of the sublessor.

  • 3. To take priority over the lease contract, and the interests derived therefrom, the creditor must come within the exception stated in subsection (2) or within one of the provisions of article 9 mentioned in subsection (3). Subsection (2) provides that where the creditor holds a lien (section 2A-103(1)(r)) that attached before the lease contract became enforceable (section 2A-301), the creditor does not take subject to the lease. Subsection (3) provides that a lessee takes its leasehold interest subject to a security interest except as otherwise provided in section 9-317, 9-321, or 9-323.

  • 4. The rules of this section operate in favor of whichever party to the lease contract may enforce it, even if one party perhaps may not, e.g., under section 2A-201(1)(b).

  • Cross References:

  • Sections 1-201(12), 1-201(25), 1-201(37), 1-201(44), 2A-103(1)(n), 2A-103(1)(o), 2A-103(1)(r), 2A-103(4), 2A-201(1)(b), and 2A-301 official comment 3(g), and article 9, especially section 9-333.

  • Definitional Cross References:

  • "Creditor". Section 1-201(12).

  • "Goods". Section 2A-103(1)(h).

  • "Knowledge" and "knows". Section 1-201(25).

  • "Lease". Section 2A-103(1)(j).

  • "Lease contract". Section 2A-103(1)(l).

  • "Leasehold interest". Section 2A-103(1)(m).

  • "Lessee". Section 2A-103(1)(n).

  • "Lessee in the ordinary course of business". Section 2A-103(1)(o).

  • "Lessor". Section 2A-103(1)(p).

  • "Lien". Section 2A-103(1)(r).

  • "Party". Section 1-201(29).

  • "Pursuant to commitment". Section 2A-103(3).

  • "Security interest". Section 1-201(37).