§490:2A-406  Procedure on excused
performance.  (a)  If the lessee receives notification of a material or
indefinite delay or an allocation justified under section 490:2A-405, 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
490:2A-510):



(1)  Terminate the lease contract (section
490:2A-505(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 490:2A-405, 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. [L 1991, c 40, pt of
§1]