(810 ILCS 5/2A-305) (from Ch. 26, par. 2A-305)
Sec. 2A-305.
Sale or sublease of goods by lessee.
(1) Subject to the provisions of Section 2A-303, 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 (2) and
Section 2A-511(4), 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:
(a) the lessor was deceived as to the identity of the |
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(b) the delivery was in exchange for a check which is
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(c) the delivery was procured through fraud
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(2) 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.
(3) 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 State or of
another jurisdiction takes no greater rights than those provided
both by this Section and by the certificate of title statute.
(Source: P.A. 87-493.)
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