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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

002A

:
Leases











 

§

2A-401. Insecurity: adequate assurance of performance

(1) A lease

contract imposes an obligation on each party that the other's expectation of

receiving due performance will not be impaired.

(2) If

reasonable grounds for insecurity arise with respect to the performance of

either party, the insecure party may demand in writing adequate assurance of

due performance. Until the insecure party receives that assurance, if

commercially reasonable the insecure party may suspend any performance for

which he or she has not already received the agreed return.

(3) A

repudiation of the lease contract occurs if assurance of due performance

adequate under the circumstances of the particular case is not provided to the

insecure party within a reasonable time, not to exceed 30 days after receipt of

a demand by the other party.

(4) Between

merchants, the reasonableness of grounds for insecurity and the adequacy of any

assurance offered must be determined according to commercial standards.

(5) Acceptance

of any nonconforming delivery or payment does not prejudice the aggrieved

party's right to demand adequate assurance of future performance. (Added 1993,

No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995.)