400.2A-523. Lessor's remedies.
Lessor's remedies.
400.2A-523. (1) If a lessee wrongfully rejects or revokesacceptance of goods or fails to make a payment when due orrepudiates with respect to a part or the whole, then, withrespect to any goods involved, and with respect to all of thegoods if under an installment lease contract the value of thewhole lease contract is substantially impaired (Section400.2A-510), the lessee is in default under the lease contractand the lessor may:
(a) cancel the lease contract (Section 400.2A-505(1));
(b) proceed respecting goods not identified to the leasecontract (Section 400.2A-524);
(c) withhold delivery of the goods and take possession ofgoods previously delivered (Section 400.2A-525);
(d) stop delivery of the goods by any bailee (Section400.2A-526);
(e) dispose of the goods and recover damages (Section400.2A-527), or retain the goods and recover damages (Section400.2A-528), or in a proper case recover rent (Section400.2A-529);
(f) exercise any other rights or pursue any other remediesprovided in the lease contract.
(2) If a lessor does not fully exercise a right or obtain aremedy to which the lessor is entitled under subsection (1), thelessor may recover the loss resulting in the ordinary course ofevents from the lessee's default as determined in any reasonablemanner, together with incidental damages, less expenses saved inconsequence of the lessee's default.
(3) If a lessee is otherwise in default under a leasecontract, the lessor may exercise the rights and pursue theremedies provided in the lease contract, which may include aright to cancel the lease. In addition, unless otherwiseprovided in the lease contract:
(a) if the default substantially impairs the value of thelease contract to the lessor, the lessor may exercise the rightsand pursue the remedies provided in subsection (1) or (2); or
(b) if the default does not substantially impair the valueof the lease contract to the lessor, the lessor may recover asprovided in subsection (2).
(L. 1992 S.B. 448)