2025 Session Last amended: 2000 session

§ 336.2A-307 — Priority of Liens Arising by Attachment or Levy on, Security Interests in, and Other Claims to Goods

Plain-Language Summary

This section sets the priority between a lease and various creditors or claims on the goods. A creditor of the lessee generally takes subject to the lease, so the lessee's lease rights come first. A creditor of the lessor also generally takes subject to the lease, unless that creditor's lien attached to the goods before the lease contract became enforceable. However, the lessee takes its leasehold interest subject to a security interest held by a creditor of the lessor, except where the listed Article 9 security interest rules provide otherwise.

336.2A-307 PRIORITY OF LIENS ARISING BY ATTACHMENT OR LEVY ON, SECURITY INTERESTS IN, AND OTHER CLAIMS TO GOODS.

(1) Except as otherwise provided in section 336.2A-306, a creditor of a lessee takes subject to the lease contract.

(2) Except as otherwise provided in subsection (3) and in sections 336.2A-306 and 336.2A-308, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.

(3) Except as otherwise provided in sections 336.9-317, 336.9-321, and 336.9-323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.

History:

1989 c 232 art 1 s 2A-307; 1991 c 171 art 1 s 5; 2000 c 399 art 2 s 10

History: History: 1989 c 232 art 1 s 2A-307; 1991 c 171 art 1 s 5; 2000 c 399 art 2 s 10

Practical Notes

As a lessee, your lease interest generally beats the lessor’s creditors, but only if the lease became enforceable before the creditor’s lien attached. A different rule applies to a creditor holding a security interest in the goods: your lease can be subordinate to that security interest unless one of the referenced Article 9 sections protects you.

Source: Minnesota Office of the Revisor of Statutes