47-2A406. Procedure on excused
performance
A. If the lessee receives notification of a material or indefinite delay or an
allocation justified under section 47-2A405, the lessee may by written notification to
the lessor as to any goods involved, and with respect to all of the goods if under an
installment lease contract the value of the whole lease contract is substantially
impaired (section 47-2A510):
1. Terminate the lease contract (section 47-2A505, subsection B); or
2. Except in a finance lease that is not a consumer lease, modify the lease
contract by accepting the available quota in substitution, with due allowance from the
rent payable for the balance of the lease term for the deficiency but without further
right against the lessor.
B. If, after receipt of a notification from the lessor under section 47-2A405, the
lessee fails so to modify the lease agreement within a reasonable time not exceeding
thirty days, the lease contract lapses with respect to any deliveries affected.
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