47-2A524. Lessor's right to identify goods to
lease contract
A. After default by the lessee under the lease contract of the type described in
section 47-2A523, subsection A or section 47-2A523, subsection C, paragraph 1 or, if
agreed, after other default by the lessee, the lessor may:
1. Identify to the lease contract conforming goods not already identified if at the
time the lessor learned of the default they were in the lessor's or the supplier's
possession or control; and
2. Dispose of goods (section 47-2A527, subsection A) that demonstrably have been
intended for the particular lease contract even though those goods are unfinished.
B. If the goods are unfinished, in the exercise of reasonable commercial judgment
for the purposes of avoiding loss and of effective realization, an aggrieved lessor or
the supplier may either complete manufacture and wholly identify the goods to the lease
contract or cease manufacture and lease, sell or otherwise dispose of the goods for scrap
or salvage value or proceed in any other reasonable manner.
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