Section 45.12.308. Special rights of creditors.

   (a) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudulent, but retention of possession in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract becomes enforceable is not fraudulent.
   (b) Nothing in this chapter impairs the rights of creditors of a lessor if the lease contract
        (1) becomes enforceable, not in current course of trade but in satisfaction of or as security for a preexisting claim for money, security, or the like; and
        (2) is made under circumstances that under law apart from this chapter would constitute the transaction a fraudulent transfer or voidable preference.
   (c) A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor retention of possession by the seller is fraudulent but retention of possession of the goods under a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith.

Authorities

45.07.504

Notes

References

AS 45.07.504 Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery.

History

(Sec. 125 ch 35 SLA 1993)