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HomeCommercial CodeDiv. 10Ch. 3§ 10306 Lien Priority Over Leases

§ 10306 Lien Priority Over Leases

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 10306 Lien Priority Over Leases

This law says that if someone fixes or adds parts to something you're leasing, they can claim it until you pay them, even if the lease says otherwise.

Key Takeaways

  • •If you lease something and someone works on it, they can hold onto it if you don't pay.
  • •This rule beats what the lease says unless another law says differently.
  • •This only applies if the person working on it has it in their possession.

Example

You lease a car and take it to a mechanic for repairs.

If you don't pay the mechanic, they can keep your car until you do, even if the lease company says they own it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 10306 Lien Priority Over Leases

If a person in the ordinary course of his or her business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those goods in the possession of that person given by statute or rule of law for those materials or services takes priority over any interest of the lessor or lessee under the lease contract or this division unless the lien is created by statute and the statute provides otherwise or unless the lien is created by rule of law and the rule of law provides otherwise. (Added by Stats. 1988, Ch. 1359, Sec. 5. Operative January 1, 1990, by Sec. 11 of Ch. 1359.)

Last verified: January 10, 2026

Key Terms

lienlease contractlessorlesseestatuterule of law

Related Statutes

  • § 10310 Lease Priority For Accessions
  • § 10302 Lease Title And Possession
  • § 10307 Lessee Creditor Rights
  • § 10308 Creditor Rights In Leases
  • § 10221 Lease Goods Casualty Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 10306.
View Official Source