§ 25-2A-523. Lessor's remedies.
C. Default by Lessee.
§ 25‑2A‑523. Lessor's remedies.
(1) If a lesseewrongfully rejects or revokes acceptance of goods or fails to make a paymentwhen due or repudiates with respect to a part or the whole, then, with respectto any goods involved, and with respect to all of the goods if under aninstallment lease contract the value of the whole lease contract issubstantially impaired (G.S. 25‑2A‑510), the lessee is in defaultunder the lease contract and the lessor may:
(a) cancel the leasecontract (G.S. 25‑2A‑505(1));
(b) proceed respectinggoods not identified to the lease contract (G.S. 25‑2A‑524);
(c) withhold delivery ofthe goods and take possession of goods previously delivered (G.S. 25‑2A‑525);
(d) stop delivery of thegoods by any bailee (G.S. 25‑2A‑526);
(e) dispose of the goodsand recover damages (G.S. 25‑2A‑527), or retain the goods andrecover damages (G.S. 25‑2A‑528), or in a proper case recover rent(G.S. 25‑2A‑529);
(f) exercise any otherrights or pursue any other remedies provided in the lease contract.
(2) If a lessor doesnot fully exercise a right or obtain a remedy to which the lessor is entitledunder subsection (1) of this section, the lessor may recover the loss resultingin the ordinary course of events from the lessee's default as determined in anyreasonable manner, together with incidental damages, less expenses saved inconsequence of the lessee's default.
(3) If a lessee isotherwise in default under a lease contract, the lessor may exercise the rightsand pursue the remedies provided in the lease contract, which may include aright to cancel the lease. In addition, unless otherwise provided in the leasecontract:
(a) if the defaultsubstantially impairs the value of the lease contract to the lessor, the lessormay exercise the rights and pursue the remedies provided in subsections (1) or(2) of this section; or
(b) if the default doesnot substantially impair the value of the lease contract to the lessor, thelessor may recover as provided in subsection (2) of this section. (1993,c. 463, s. 1.)