The Vermont Statutes Online
Uniform Commercial Code
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.
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.
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.
merchants, the reasonableness of grounds for insecurity and the adequacy of any
assurance offered must be determined according to commercial standards.
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.)