8.2A-527 - A-527. Lessor's rights to dispose of goods.
§ 8.2A-527. Lessor's rights to dispose of goods.
(1) After a default by a lessee under the lease contract of the typedescribed in subsection (1) of § 8.2A-523 or subsection (3) (a) of § 8.2A-523or after the lessor refuses to deliver or takes possession of goods (§8.2A-525 or § 8.2A-526), or, it agreed, after other default by a lessee, thelessor may dispose of the goods concerned or the undelivered balance thereofby lease, sale or otherwise.
(2) Except as otherwise provided with respect to damages liquidated in thelease agreement (§ 8.2A-504) or otherwise determined pursuant to agreement ofthe parties (§§ 8.1A-302 and 8.2A-503), if the disposition is by leaseagreement substantially similar to the original lease agreement and the newlease agreement is made in good faith and in a commercially reasonablemanner, the lessor may recover from the lessee as damages (i) accrued andunpaid rent as of the date of the commencement of the term of the new leaseagreement, (ii) the present value, as of the same date of the total rent forthe then remaining lease term of the original lease agreement minus thepresent value, as of the same date, of the rent under the new lease agreementapplicable to that period of the new lease term which is comparable to thethen remaining term of the original lease agreement, and (iii) any incidentaldamages allowed under § 8.2A-530, less expenses saved in consequence of thelessee's default.
(3) If the lessor's disposition is by lease agreement that for any reasondoes not qualify for treatment under subsection (2) of this section, or is bysale or otherwise, the lessor may recover from the lessee as if the lessorhad elected not to dispose of the goods and § 8.2A-528 governs.
(4) A subsequent buyer or lessee who buys or leases from the lessor in goodfaith for value as a result of a disposition under this section takes thegoods free of the original lease contract and any rights of the originallessee even though the lessor fails to comply with one or more of therequirements of this title.
(5) The lessor is not accountable to the lessee for any profit made on anydisposition. A lessee who has rightfully rejected or justifiably revokedacceptance shall account to the lessor for any excess over the amount of thelessee's security interest (subsection (5) of § 8.2A-508).
(1991, c. 536; 2003, c. 353.)