Vermont § 304 - § 2A—304.

§ 304. § 2A—304.

• Subsequent lease of goods by lessor (1) Subject to section 2A—303 of this title, a subsequent lessee from a lessor of goods under an existing lease contract obtains,
  to the extent of the leasehold 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 section 2A—527(4) of this title, 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. If 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
  of that lessor before the interest of the subsequent lessee became enforceable against
  that lessor obtains, to the extent of the leasehold interest transferred, all of that
  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. (Added 1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995.)