47-2A527. Lessor's rights to dispose of
goods
A. After a default by a lessee under the lease contract of the type described in
section 47-2A523, subsection A or subsection C, paragraph 1 or after the lessor refuses
to deliver or takes possession of goods (section 47-2A525 or 47-2A526), 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. Except as otherwise provided with respect to damages liquidated in the lease
agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties
(sections 47-1302 and 47-2A503), if the disposition is by lease agreement substantially
similar to the original lease agreement and the new lease agreement is made in good faith
and in a commercially reasonable manner, the lessor may recover from the lessee as
damages accrued and unpaid rent as of the date of the commencement of the term of the new
lease agreement, 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 any incidental damages allowed under section 47-2A530, less expenses saved
in consequence of the lessee's default.
C. If the lessor's disposition is by lease agreement that for any reason does not
qualify for treatment under subsection B of this section, 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 47-2A528 governs.
D. 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 chapter.
E. 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 47-2A508, subsection E).
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