§ 6A-2.1-527 - Lessor's rights to dispose of goods.
SECTION 6A-2.1-527
§ 6A-2.1-527 Lessor's rights to dispose ofgoods. – (1) After a default by a lessee under the lease contract of the type describedin § 6A-2.1-523(1) or 6A-2.1-523(3)(a) or after the lessor refuses todeliver or takes possession of goods (§ 6A-2.1-525 or 6A-2.1-526), or, ifagreed, after other default by a lessee, the lessor may dispose of the goodsconcerned or the undelivered balance thereof by lease, sale, or otherwise.
(2) Except as otherwise provided with respect to damagesliquidated in the lease agreement (§ 6A-2.1-504) or otherwise determinedpursuant to agreement of the parties (§§ 6A-1-302 and 6A-2.1-503), ifthe disposition is by lease agreement substantially similar to the originallease agreement and the new lease agreement is made in good faith and in acommercially reasonable manner, the lessor may recover from the lessee asdamages (i) accrued and unpaid rent as of the date of the commencement of theterm of the new lease agreement, (ii) the present value, as of the same date,of the total rent for the then remaining lease term of the original leaseagreement minus the present value, as of the same date, of the rent under thenew lease agreement applicable to that period of the new lease term which iscomparable to the then remaining term of the original lease agreement, and(iii) any incidental damages allowed under § 6A-2.1-530, less expensessaved in consequence of the lessee's default.
(3) If the lessor's disposition is by lease agreement thatfor any reason does not qualify for treatment under subsection (2), or is bysale or otherwise, the lessor may recover from the lessee as if the lessor hadelected not to dispose of the goods and § 6A-2.1-528 governs.
(4) A subsequent buyer or lessee who buys or leases from thelessor in good faith for value as a result of a disposition under this sectiontakes the goods free of the original lease contract and any rights of theoriginal lessee even though the lessor fails to comply with one or more of therequirements of this chapter.
(5) The lessor is not accountable to the lessee for anyprofit made on any disposition. A lessee who has rightfully rejected orjustifiably revoked acceptance shall account to the lessor for any excess overthe amount of the lessee's security interest (§ 6A-2.1-508(5)).