N.Y. Uniform Commercial Code Law § 2-a-209: Lessee Under Finance Lease as Beneficiary of Supply Contract

Section 2-A-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 supplier's promises and of

warranties to the lessee under subsection (1) does not: (i) modify the

rights and obligations of the parties to the supply contract, whether

arising therefrom or otherwise, or (ii) 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 lessor is effective between the supplier and the lessee

unless, before the modification or rescission, the supplier has received

notice that the lessee 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were so modified or rescinded as they existed and were available to the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 supplier's

promises and of warranties to the lessee under subsection (1), the

lessee retains all rights which the lessee may have against the supplier

that arise from any agreement between the lessee and supplier or under

other law.