Idaho State Statutes - Idaho Attorney Directory

(1) Subject to the
provisions of section 28-12-303, a buyer or sublessee from the lessee of goods
under an existing lease contract obtains, to the extent of the interest
transferred, the leasehold interest in the goods that the lessee had or had
power to transfer, and except as provided in subsection (2) of this section
and section 28-12-511(4), takes subject to the existing lease contract. A
lessee with a voidable leasehold interest has power to transfer a good
leasehold interest to a good faith buyer for value or a good faith sublessee
for value, but only to the extent set forth in the preceding sentence. When
goods have been delivered under a transaction of lease the lessee has that
power even though:
(a) The lessor was deceived as to the identity of the lessee;
(b) The delivery was in exchange for a check which is later dishonored;
or
(c) The delivery was procured through fraud punishable as larcenous under
the criminal law.
(2) A buyer in the ordinary course of business or a sublessee in the
ordinary course of business from a lessee who is a merchant dealing in goods
of that kind to whom the goods were entrusted by the lessor obtains, to the
extent of the interest transferred, all of the lessor's and lessee's rights to
the goods, and takes free of the existing lease contract.
(3) A buyer or sublessee from the lessee 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.

Click here to visit the Official Idaho State Statutes