8.2A-523 - A-523. Lessor's remedies.
§ 8.2A-523. Lessor's remedies.
(1) If a lessee wrongfully rejects or revokes acceptance of goods or fails tomake a payment when due or repudiates with respect to a part or the whole,then, with respect to any goods involved, and with respect to all of thegoods if under an installment lease contract the value of the whole leasecontract is substantially impaired (§ 8.2A-510), the lessee is in defaultunder the lease contract and the lessor may:
(a) Cancel the lease contract (subsection (1) of § 8.2A-505);
(b) Proceed respecting goods not identified to the lease contract (§8.2A-524);
(c) Withhold delivery of the goods and take possession of goods previouslydelivered (§ 8.2A-525);
(d) Stop delivery of the goods by any bailee (§ 8.2A-526);
(e) Dispose of the goods and recover damages (§ 8.2A-527), or retain thegoods and recover damages (§ 8.2A-528), or in a proper case recover rent (§8.2A-529); or
(f) Exercise any other rights or pursue any other remedies provided in thelease contract.
(2) If a lessor does not fully exercise a right or obtain a remedy to whichthe lessor is entitled under subsection (1) of this section, the lessor mayrecover the loss resulting in the ordinary course of events from the lessee'sdefault as determined in any reasonable manner, together with incidentaldamages, less expenses saved in consequence of the lessee's default.
(3) If a lessee is otherwise in default under a lease contract, the lessormay exercise the rights and pursue the remedies provided in the leasecontract which may include a right to cancel the lease. In addition, unlessotherwise provided in the lease contract if:
(a) The default substantially impairs the value of the lease contract to thelessor, the lessor may exercise the rights and pursue the remedies providedin subsection (1) or (2) of this section; or
(b) The default does not substantially impair the value of the lease contractto the lessor, the lessor may recover as provided in subsection (2) of thissection.
(1991, c. 536.)