{"data":{"id":"us-ky/krs-355.2a-304","jurisdiction":"us-ky","citation":"KRS 355.2A-304","heading":"Subsequent lease of goods by lessor.","body":"(1) Subject to KRS 355.2A -303, a subsequent lessee from a lessor of goods under an\nexisting lease contract obtains, to the extent of the leasehold interest transferred, the\nleasehold interest in the goods that the lessor had or had power to transfer, and\nexcept as provided in subsection (2) of this section and subsection (4) of KRS\n355.2A-527, takes subject to the existing lease contract. A lessor with voidable title\nhas power to transfer a good leasehold interest to a good faith subsequent lessee for\nvalue, but only to the extent set forth in the preceding sentence. If goods have been\ndelivered under a transaction of purchase, the lessor has that power even though:\n(a) The lessor's transferor was deceived as to the identity of the lessor;\n(b) The delivery was in exchange for a check which is later dishonored;\n(c) It was agreed that the transaction was to be a \"cash sale\"; or\n(d) The delivery was procured through fraud punishable as larcenous under the\ncriminal law.\n(2) A subsequent lessee in the ordinary course of business from a lessor who is a\nmerchant dealing in goods of that kind to whom the goods were entrusted by the\nexisting lessee of that lessor before the interest of the subsequent lessee became\nenforceable against that lessor obtains, to the extent of t he leasehold interest\ntransferred, all of that lessor's and the existing lessee's rights to the goods, and takes\nfree of the existing lease contract.\n(3) A subsequent lessee from the lessor of goods that are subject to an existing lease\ncontract and are covered by a certificate of title issued under a statute of this state or\nof another jurisdiction takes no greater rights than those provided both by this\nsection and by the certificate of title statute.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33382","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"afe2639941607e3b43b3d76cdfbeb422c2586b983c1cb74d456d76d1293b91bc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-303","next":"us-ky/krs-355.2a-305"},"notice":"GroundRules: Original legal text. Not legal advice."}