400.2A-401. Insecurity--adequate assurance of performance.
Insecurity--adequate assurance of performance.
400.2A-401. (1) A lease contract imposes an obligation oneach party that the other's expectation of receiving dueperformance will not be impaired.
(2) If reasonable grounds for insecurity arise with respectto the performance of either party, the insecure party may demandin writing adequate assurance of due performance. Until theinsecure party receives that assurance, if commerciallyreasonable the insecure party may suspend any performance forwhich he has not already received the agreed return.
(3) A repudiation of the lease contract occurs if assuranceof due performance adequate under the circumstances of theparticular case is not provided to the insecure party within areasonable time, not to exceed thirty days after receipt of ademand by the other party.
(4) Between merchants, the reasonableness of grounds forinsecurity and the adequacy of any assurance offered must bedetermined according to commercial standards.
(5) Acceptance of any nonconforming delivery or paymentdoes not prejudice the aggrieved party's right to demand adequateassurance of future performance.
(L. 1992 S.B. 448)