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Can you summarize MNST 336.2A-304?
UNIFORM COMMERCIAL CODE > SUBSEQUENT LEASE OF GOODS BY LESSOR.
Short Summary
This legal provision, found in the Minnesota Statutes under the Uniform Commercial Code, governs the subsequent lease of goods by a lessor. It states that a subsequent lessee from a lessor of goods under an existing lease contract obtains the leasehold interest in the goods that the lessor had or had the power to transfer. However, the subsequent lessee takes subject to the existing lease contract, unless certain conditions are met. If a lessee entrusts leased goods to the lessor who is a merchant dealing in goods of that kind, a subsequent lessee from that lessor, in the ordinary course of business, takes those goods free of the existing lease contract and obtains all of the lessor’s and the earlier lessee’s rights to the goods. It is important to note that if the goods are covered by a certificate of title issued under a statute, the subsequent lessee takes no greater rights than those provided by this provision and the certificate of title statute.
Whom does it apply to?
Lessors and subsequent lessees of goods under an existing lease contract
What does it govern?
Subsequent lease of goods by lessor
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota