Sec. 42a-2A-408. Special rights of creditors.
Sec. 42a-2A-408. Special rights of creditors. (a) Except as otherwise provided
in subsections (b) and (c) of this section, the rights of creditors of the lessor with respect
to goods identified to a lease contract and retained by the lessor are subject to the lessee's
rights under section 42a-2A-708, subsection (d) of section 42a-2A-724 and section 42a-2A-737 if the lessee's rights vest before a creditor's claim in rem attaches to the goods.
(b) A creditor of a lessor may treat a lease or an identification of goods to a lease
contract as void if, as against the creditor, a retention of possession or identification by
the lessor is fraudulent under any law of the state in which the goods are situated. However, the retention of possession in good faith and current course of trade by a merchant
lessor for a commercially reasonable time after a lease or identification is not fraudulent.
(c) Except as otherwise provided in subsection (a) of this section and sections 42a-2A-404 and 42a-2A-405, this article does not impair the rights of creditors of the lessor
if identification to the lease contract or delivery is not made in current course of trade
but is made in satisfaction of or as security for a preexisting claim for money, security
or the like under circumstances that under any law of the state where the goods are
situated, apart from this article, would constitute a fraudulent transfer or a voidable
preference.
(d) 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, a retention of possession by the seller is
fraudulent under any law of the state where the goods are situated. However, it is not
fraudulent for a seller to retain possession of the goods pursuant to 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 if the buyer bought for value and in good faith.
(P.A. 02-131, S. 35.)