Idaho State Statutes - Idaho Attorney Directory

(1)
In this section:
(a) Goods are "fixtures" when they become so related to particular real
estate that an interest in them arises under real estate law;
(b) A "fixture filing" is the filing, in the office where a record of a
mortgage on the real estate would be filed or recorded, of a financing
statement covering goods that are or are to become fixtures and conforming
to the requirements of section 28-9-502(a) and (b);
(c) A lease is a "purchase money lease" unless the lessee has possession
or use of the goods or the right to possession or use of the goods before
the lease agreement is enforceable;
(d) A mortgage is a "construction mortgage" to the extent it secures an
obligation incurred for the construction of an improvement on land
including the acquisition cost of the land, if the recorded writing so
indicates; and
(e) "Encumbrance" includes real estate mortgages and other liens on real
estate and all other rights in real estate that are not ownership
interests.
(2) Under this chapter a lease may be of goods that are fixtures or may
continue in goods that become fixtures, but no lease exists under this chapter
of ordinary building materials incorporated into an improvement on land.
(3) The provisions of this chapter do not prevent creation of a lease of
fixtures pursuant to real estate law.
(4) The perfected interest of a lessor of fixtures has priority over a
conflicting interest of an encumbrancer or owner of the real estate if:
(a) The lease is a purchase money lease, the conflicting interest of the
encumbrancer or owner arises before the goods become fixtures, the
interest of the lessor is perfected by a fixture filing before the goods
become fixtures or within ten (10) days thereafter, and the lessee has an
interest of record in the real estate or is in possession of the real
estate; or
(b) The interest of the lessor is perfected by a fixture filing before
the interest of the encumbrancer or owner is of record, the lessor's
interest has priority over any conflicting interest of a predecessor in
title of the encumbrancer or owner, and the lessee has an interest of
record in the real estate or is in possession of the real estate.
(5) The interest of a lessor of fixtures, whether or not perfected, has
priority over the conflicting interest of an encumbrancer or owner of the real
estate if:
(a) The fixtures are readily removable factory or office machines,
readily removable equipment that is not primarily used or leased for use
in the operation of the real estate, or readily removable replacements of
domestic appliances that are goods subject to a consumer lease, and before
the goods become fixtures the lease contract is enforceable; or
(b) The conflicting interest is a lien on the real estate obtained by
legal or equitable proceedings after the lease contract is enforceable; or
(c) The encumbrancer or owner has consented in writing to the lease or
has disclaimed an interest in the goods as fixtures; or
(d) The lessee has a right to remove the goods as against the
encumbrancer or owner. If the lessee's right to remove terminates, the
priority of the interest of the lessor continues for a reasonable time.
(6) Notwithstanding the provisions of subsection (4)(a) of this section
but otherwise subject to the provisions of subsections (4) and (5) of this
section, the interest of a lessor of fixtures, including the lessor's residual
interest, is subordinate to the conflicting interest of an encumbrancer of the
real estate under a construction mortgage recorded before the goods become
fixtures if the goods become fixtures before the completion of the
construction. To the extent given to refinance a construction mortgage, the
conflicting interest of an encumbrancer of the real estate under a mortgage
has this priority to the same extent as the encumbrancer of the real estate
under the construction mortgage.
(7) In cases not within the preceding subsections, priority between the
interest of a lessor of fixtures, including the lessor's residual interest,
and the conflicting interest of an encumbrancer or owner of the real estate
who is not the lessee is determined by the priority rules governing
conflicting interests in real estate.
(8) If the interest of a lessor of fixtures, including the lessor's
residual interest, has priority over all conflicting interests of all owners
and encumbrancers of the real estate, the lessor or the lessee may: (i) on
default, expiration, termination, or cancellation of the lease agreement but
subject to the lease agreement and this chapter, or (ii) if necessary to
enforce his other rights and remedies of the lessor or lessee under this
chapter, remove the goods from the real estate, free and clear of all
conflicting interests of all owners and encumbrancers of the real estate, but
the lessor or lessee must reimburse any encumbrancer or owner of the real
estate 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 real
estate caused by the absence of the goods removed or by any necessity of
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.
(9) Even though the lease agreement does not create a security interest,
the interest of a lessor of fixtures, including the lessor's residual
interest, is perfected by filing a financing statement as a fixture filing for
leased goods that are or are to become fixtures in accordance with the
relevant provisions of the chapter on secured transactions (chapter 9, title
28, Idaho Code).

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