                                 CODE OF VIRGINIA

LESSEE UNDER FINANCE LEASE AS BENEFICIARY OF SUPPLY CONTRACT (§ 8.2A-209)

1. The benefit of a supplier&#8217;s promises to the lessor including those of
any third party provided in connection with or as part of the supply contract
and of all warranties, whether express or implied, under the supply contract,
extends to the lessee to the extent of the lessee&#8217;s leasehold interest
under a finance lease related to the supply contract, but is subject to the
terms of the warranty and of the supply contract and all defenses or claims
arising therefrom.

2. The extension of the benefit of a supplier&#8217;s promises and of warranties
to the lessee (&#xA7; 8.2A-209 (1) ) does not: (i) modify the rights and
obligations of the parties to the supply contract, whether arising therefrom or
otherwise, or (ii) impose any duty or liability under the supply contract on the
lessee.

3. Any modification or rescission of the supply contract by the supplier and the
lessor is effective between the supplier and the lessee unless, before the
modification or rescission, the supplier has received notice that the lessee has
entered into a finance lease related to the supply contract. If the modification
or rescission is effective between the supplier and the lessee, the lessor is
deemed to have assumed, in addition to the obligations of the lessor to the
lessee under the lease contract, promises of the supplier to the lessor and
warranties that were so modified or rescinded as they existed and were available
to the lessee before modification or rescission.

4. In addition to the extension of the benefit of the supplier&#8217;s promises
and of warranties to the lessee under subsection (1) of this section, the lessee
retains all rights that the lessee may have against the supplier which arise
from an agreement between the lessee and the supplier or under other law.

HISTORY: 1991, c. 536.