California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 14 — Lien, Chapter 2d — Vehicle Leasing Act, Section 2986.10
(a) An assignee of the lessor’s rights is subject to all equities and defenses of the lessee against the lessor, notwithstanding an agreement to the contrary, but the assignee’s liability may not exceed the amount of the obligation owing to the assignee at the time of the assignment.
(b) The assignee shall have recourse against the lessor to the extent of any liability incurred by the assignee pursuant to this section regardless of whether the assignment was with or without recourse.
Notes
Establishes that an assignee of a lessor’s rights takes subject to all lessee equities and defenses against the lessor despite contrary agreement, but limits the assignee’s liability to the obligation owed to the assignee at assignment. Requires the assignee to have recourse against the lessor for liability incurred under this rule whether the assignment was with or without recourse.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2986.10 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-14/chapter-2d/section-2986-10