N.Y. Uniform Commercial Code Law § 2-a-310: Lessor's and Lessee's Rights When Goods Become Accessions

Section 2-A-310. Lessor's and Lessee's Rights When Goods Become

Accessions.

(1) Goods are "accessions" when they are installed in or affixed to

other goods.

(2) The interest of a lessor or a lessee under a lease contract

entered into before the goods became accessions is superior to all

interests in the whole except as stated in subsection (4).

(3) The interest of a lessor or a lessee under a lease contract

entered into at the time or after the goods became accessions is

superior to all subsequently acquired interests in the whole except as

stated in subsection (4) but is subordinate to interests in the whole

existing at the time the lease contract was made unless the holders of

such interests in the whole have in writing consented to the lease or

disclaimed an interest in the goods as part of the whole.

(4) The interest of a lessor or a lessee under a lease contract

described in subsection (2) or (3) is subordinate to the interest of:

(a) a buyer in the ordinary course of business or a lessee in the

ordinary course of business of any interest in the whole

acquired after the goods became accessions; or

(b) a creditor with a security interest in the whole perfected

before the lease contract was made to the extent that the

creditor makes subsequent advances without knowledge of the

lease contract.

(5) When under subsections (2) or (3) and (4) a lessor or a lessee of

accessions holds an interest that is superior to all interests in the

whole, the lessor or the lessee may (a) on default, expiration,

termination, or cancellation of the lease contract by the other party

but subject to the provisions of the lease contract and this Article, or

(b) if necessary to enforce his or her other rights and remedies under

this Article, remove the goods from the whole, free and clear of all

interests in the whole, but he or she must reimburse any holder of an

interest in the whole who is not the lessee and who has not otherwise

agreed for the cost of repair of any physical injury but not for any

diminution in value of the whole caused by the absence of the goods

removed or by any necessity for replacing them. A person entitled to

reimbursement may refuse permission to remove until the party seeking

removal gives adequate security for the performance of this obligation.