Idaho State Statutes - Idaho Attorney Directory

(1) Subject to section
28-12-303, a subsequent lessee from a lessor of goods under an existing lease
contract obtains, to the extent of the leasehold interest transferred, the
leasehold interest in the goods that the lessor had or had power to transfer,
and except as provided in subsection (2) of this section and section
28-12-527(4), takes subject to the existing lease contract. A lessor with
voidable title has power to transfer a good leasehold interest to a good faith
subsequent lessee for value, but only to the extent set forth in the preceding
sentence. If goods have been delivered under a transaction of purchase, the
lessor has that power even though:
(a) The lessor's transferor was deceived as to the identity of the
lessor;
(b) The delivery was in exchange for a check which is later dishonored;
(c) It was agreed that the transaction was to be a "cash sale"; or
(d) The delivery was procured through fraud punishable as larcenous under
the criminal law.
(2) A subsequent lessee in the ordinary course of business from a lessor
who is a merchant dealing in goods of that kind to whom the goods were
entrusted by the existing lessee of that lessor before the interest of the
subsequent lessee became enforceable against that lessor obtains, to the
extent of the leasehold interest transferred, all of that lessor's and the
existing lessee's rights to the goods, and takes free of the existing lease
contract.
(3) A subsequent lessee from the lessor of goods that are subject to an
existing lease contract and are covered by a certificate of title issued under
a statute of this state or of another jurisdiction takes no greater rights
than those provided both by this section and by the certificate of title
statute.

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