Subpart C. 
Default by Lessee



 



§490:2A-523  Lessor's remedies.  (a)  If
a lessee wrongfully rejects or revokes acceptance of goods or fails to make a
payment when due or repudiates with respect to a part or the whole, then, with
respect 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), the lessee is in default under the
lease contract and the lessor may:



(1)  Cancel the lease contract (section
490:2A-505(a));



(2)  Proceed respecting goods not identified to the
lease contract (section 490:2A-524);



(3)  Withhold delivery of the goods and take
possession of goods previously delivered (section 490:2A-525);



(4)  Stop delivery of the goods by any bailee (section
490:2A-526);



(5)  Dispose of the goods and recover damages (section
490:2A-527), or retain the goods and recover damages (section 490:2A-528), or
in a proper case recover rent (section 490:2A-529);



(6)  Exercise any other rights or pursue any other
remedies provided in the lease contract.



(b)  If a lessor does not fully exercise a
right or obtain a remedy to which the lessor is entitled under subsection (a),
the lessor may recover the loss resulting in the ordinary course of events from
the lessee's default as determined in any reasonable manner, together with
incidental damages, less expenses saved in consequence of the lessee's default.



(c)  If a lessee is otherwise in default under
a lease contract, the lessor may exercise the rights and pursue the remedies
provided in the lease contract, which may include a right to cancel the lease. 
In addition, unless otherwise provided in the lease contract:



(1)  If the default substantially impairs the value of
the lease contract to the lessor, the lessor may exercise the rights and pursue
the remedies provided in subsection (a) or (b); or



(2)  If the default does not substantially impair the
value of the lease contract to the lessor, the lessor may recover as provided
in subsection (b). [L 1991, c 40, pt of §1]