2-A-401 - Insecurity: Adequate Assurance of Performance. - New-york Statutes

State Codes and Statutes

Statutes > New-york > Ucc > Article-2-a > Part-4 > 2-a-401

Section 2-A-401. Insecurity: Adequate Assurance of Performance.    (1)  A  lease  contract  imposes  an obligation on each party that the  other's expectation of receiving due performance will not be impaired.    (2) If reasonable grounds for insecurity arise  with  respect  to  the  performance  of  either  party, the insecure party may demand in writing  adequate assurance of due performance. Until the insecure party receives  that assurance,  if  commercially  reasonable  the  insecure  party  may  suspend any performance for which he or she has not already received the  agreed return.    (3)  A  repudiation  of  the lease contract occurs if assurance of due  performance adequate under the circumstances of the particular  case  is  not  provided  to  the  insecure  party within a reasonable time, not to  exceed thirty days after receipt of a demand by the other party.    (4) Between merchants, the reasonableness of  grounds  for  insecurity  and  the  adequacy of any assurance offered must be determined according  to commercial standards.    (5) Acceptance of any  nonconforming  delivery  or  payment  does  not  prejudice  the  aggrieved  party's right to demand adequate assurance of  future performance.

State Codes and Statutes

Statutes > New-york > Ucc > Article-2-a > Part-4 > 2-a-401

Section 2-A-401. Insecurity: Adequate Assurance of Performance.    (1)  A  lease  contract  imposes  an obligation on each party that the  other's expectation of receiving due performance will not be impaired.    (2) If reasonable grounds for insecurity arise  with  respect  to  the  performance  of  either  party, the insecure party may demand in writing  adequate assurance of due performance. Until the insecure party receives  that assurance,  if  commercially  reasonable  the  insecure  party  may  suspend any performance for which he or she has not already received the  agreed return.    (3)  A  repudiation  of  the lease contract occurs if assurance of due  performance adequate under the circumstances of the particular  case  is  not  provided  to  the  insecure  party within a reasonable time, not to  exceed thirty days after receipt of a demand by the other party.    (4) Between merchants, the reasonableness of  grounds  for  insecurity  and  the  adequacy of any assurance offered must be determined according  to commercial standards.    (5) Acceptance of any  nonconforming  delivery  or  payment  does  not  prejudice  the  aggrieved  party's right to demand adequate assurance of  future performance.

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > New-york > Ucc > Article-2-a > Part-4 > 2-a-401

Section 2-A-401. Insecurity: Adequate Assurance of Performance.    (1)  A  lease  contract  imposes  an obligation on each party that the  other's expectation of receiving due performance will not be impaired.    (2) If reasonable grounds for insecurity arise  with  respect  to  the  performance  of  either  party, the insecure party may demand in writing  adequate assurance of due performance. Until the insecure party receives  that assurance,  if  commercially  reasonable  the  insecure  party  may  suspend any performance for which he or she has not already received the  agreed return.    (3)  A  repudiation  of  the lease contract occurs if assurance of due  performance adequate under the circumstances of the particular  case  is  not  provided  to  the  insecure  party within a reasonable time, not to  exceed thirty days after receipt of a demand by the other party.    (4) Between merchants, the reasonableness of  grounds  for  insecurity  and  the  adequacy of any assurance offered must be determined according  to commercial standards.    (5) Acceptance of any  nonconforming  delivery  or  payment  does  not  prejudice  the  aggrieved  party's right to demand adequate assurance of  future performance.