Nevada § 104A.2304 - Subsequent lease of goods by lessor

§ 104A.2304. Subsequent lease of goods by lessor

1. Subject to the provisions of NRS 104A.2303 , a subsequent lessee from a lessor of goods under an existing lease contract obtains,

to the extent of the lease-hold interest transferred, the leasehold interest in the

goods that the lessor had or had power to transfer, and except as provided in subsection

2 of this section and subsection 4 of NRS 104A.2527 , 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. When goods have been delivered under a transaction of purchase the lessor has that

power even though: (a) The lessor's transferor was deceived as to the identity of the lessor; (b) The delivery was in exchange for a check which is later dishonored; (c) It was agreed that the transaction was to be a “cash sale;” or (d) The delivery was procured through fraud punishable as larcenous under the criminal

law. 2. 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

from that lessor before the interest of the subsequent lessee became enforceable against

the lessor obtains, to the extent of the leasehold interest transferred, all of the

lessor's and the existing lessee's rights to the goods, and takes free of the existing

lease contract. 3. 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

State or of another jurisdiction takes no greater rights than those provided both

by this section and by the certificate of title statute.