§ 25-2A-528. Lessor's damages for nonacceptance, failure to pay, repudiation, or other default.

§ 25‑2A‑528. Lessor's damages for nonacceptance, failure to pay, repudiation, or otherdefault.

(1)        Except as otherwiseprovided with respect to damages liquidated in the lease agreement (G.S. 25‑2A‑504)or otherwise determined pursuant to agreement of the parties (G.S. 25‑1‑302and G.S. 25‑2A‑503), if a lessor elects to retain the goods or alessor elects to dispose of the goods and the disposition is by lease agreementthat for any reason does not qualify for treatment under G.S. 25‑2A‑527(2),or is by sale or otherwise, the lessor may recover from the lessee as damagesfor a default of the type described in G.S. 25‑2A‑523(1) or G.S. 25‑2A‑523(3)(a),or if agreed, for other default of the lessee, (i) accrued and unpaid rent asof the date of default if the lessee has never taken possession of the goods,or, if the lessee has taken possession of the goods, as of the date the lessorrepossesses the goods or an earlier date on which the lessee makes a tender ofthe goods to the lessor, (ii) the present value as of the date determined underclause (i) of the total rent for the then remaining lease term of the originallease agreement minus the present value as of the same date of the market rentat the place where the goods are located computed for the same lease term, and(iii) any incidental damages allowed under G.S. 25‑2A‑530, lessexpenses saved in consequence of the lessee's default.

(2)        If the measure ofdamages provided in subsection (1) of this section, is inadequate to put alessor in as good a position as performance would have, the measure of damagesis the present value of the profit, including reasonable overhead, the lessorwould have made from full performance by the lessee, together with anyincidental damages allowed under G.S. 25‑2A‑530, due allowance forcosts reasonably incurred and due credit for payments or proceeds ofdisposition. (1993,c. 463, s. 1; 2006‑112, s. 11.)