2A527 - Lessor's rights to dispose of goods.

     § 2A527.  Lessor's rights to dispose of goods.        (a)  General rule.--After a default by a lessee under the     lease contract of the type described in section 2A523(a) or     (c)(1) (relating to lessor's remedies) or after the lessor     refuses to deliver or takes possession of goods (section 2A525     or 2A526) or, if agreed, after other default by a lessee, the     lessor may dispose of the goods concerned or the undelivered     balance thereof by lease, sale or otherwise.        (b)  Damages recoverable.--Except as otherwise provided with     respect to damages liquidated in the lease agreement (section     2A504) or otherwise determined pursuant to agreement of the     parties (sections 1302 and 2A503), if the disposition is by     lease agreement substantially similar to the original lease     agreement and the lease agreement is made in good faith and in a     commercially reasonable manner, the lessor may recover from the     lessee as damages:            (1)  accrued and unpaid rent as of the date of the        commencement of the term of the new lease agreement;            (2)  the present value, as of the same date, of the total        rent for the then remaining lease term of the original lease        agreement minus the present value, as of the same date, of        the rent under the new lease agreement applicable to that        period of the new lease term which is comparable to the then        remaining term of the original lease agreement; and            (3)  any incidental damages allowed under section 2A530        (relating to lessor's incidental damages), less expenses        saved in consequence of the lessee's default.        (c)  Recovery in other cases.--If the lessor's disposition is     by lease agreement that for any reason does not qualify for     treatment under subsection (b), or is by sale or otherwise, the     lessor may recover from the lessee as if the lessor had elected     not to dispose of the goods and section 2A528 (relating to     lessor's damages for nonacceptance, failure to pay, repudiation     or other default) governs.        (d)  Rights of good faith buyer or lessee.--A subsequent     buyer or lessee who buys or leases from the lessor in good faith     for value as a result of a disposition under this section takes     the goods free of the original lease contract and any rights of     the original lessee even though the lessor fails to comply with     one or more of the requirements of this division.        (e)  Accountability for profits.--The lessor is not     accountable to the lessee for any profit made on any     disposition. A lessee who has rightfully rejected or justifiably     revoked acceptance shall account to the lessor for any excess     over the amount of the lessee's security interest (section     2A508(e)).     (Apr. 16, 2008, P.L.57, No.13, eff. 60 days)        2008 Amendment.  Act 13 amended subsec. (b) intro. par.        Cross References.  Section 2A527 is referred to in sections     2A304, 2A508, 2A523, 2A524, 2A525, 2A528, 2A529 of this title.