§490:2A-405  Excused performance.  Subject
to section 490:2A-404 on substituted performance, the following rules apply:



(1)  Delay in delivery or nondelivery in whole or in
part by a lessor or a supplier who complies with paragraphs (2) and (3) is not
a default under the lease contract if performance as agreed has been made
impracticable by the occurrence of a contingency the nonoccurrence of which was
a basic assumption on which the lease contract was made or by compliance in
good faith with any applicable foreign or domestic governmental regulation or
order, whether or not the regulation or order later proves to be invalid.



(2)  If the causes mentioned in paragraph (1) affect
only part of the lessor's or the supplier's capacity to perform, the lessor or
the supplier shall allocate production and deliveries among the lessor's or the
supplier's customers but at the lessor's or the supplier's option may include
regular customers not then under contract for sale or lease as well as the
lessor's or supplier's own requirements for further manufacture.  The lessor or
supplier may so allocate in any manner that is fair and reasonable.



(3)  The lessor seasonably shall notify the lessee and
in the case of a finance lease the supplier seasonably shall notify the lessor
and the lessee, if known, that there will be delay or nondelivery and, if
allocation is required under paragraph (2), of the estimated quota thus made
available for the lessee. [L 1991, c 40, pt of §1]