KRS 355.2A-209: Lessee under finance lease as beneficiary of supply contract.

(1) The benefit of a supplier's promises to the lessor under the supply contract and of all

warranties, whether express or implied, including those of any third party provided

in connection with or as part of the supply contract, extends to the lessee to the

extent of the lessee's leasehold interest under a finance lease related to the supply

contract, but is subject to the terms of the warranty and of the supply contract and

all defenses or claims arising therefrom.

(2) The extension of the benefit of a suppli er's promises and of warranties to the lessee

(subsection (1) of this section) does not:

(a) Modify the rights and obligations of the parties to the supply contract, whether

arising therefrom or otherwise, or

(b) Impose any duty or liability under the supply contract on the lessee.

(3) Any modification or rescission of the supply contract by the supplier and the lessor

is effective between the supplier and the lessee unless, before the modification or

rescission, the supplier has received notice that the le ssee has entered into a finance

lease related to the supply contract. If the modification or rescission is effective

between the supplier and the lessee, the lessor is deemed to have assumed, in

addition to the obligations of the lessor to the lessee under the lease contract,

promises of the supplier to the lessor and warranties that were so modified or

rescinded as they existed and were available to the lessee before modification or

rescission.

(4) In addition to the extension of the benefit of the supplie r's promises and of

warranties to the lessee under subsection (1), the lessee retains all rights that the

lessee may have against the supplier which arise from an agreement between the

lessee and the supplier or under other law.