TITLE 6A

Uniform Commercial Code

CHAPTER 6A-2.1

Leases

PART 6A-2.1-501

Default

SECTION 6A-2.1-529



   § 6A-2.1-529  Lessor's action for the rent.

–

(1) After default by the lessee under the lease contract of the type described

in § 6A-2.1-523(1) or 6A-2.1-523(3)(a) or, if agreed, after other default

by the lessee, if the lessor complies with subsection (2), the lessor may

recover from the lessee as damages:



   (a) For goods accepted by the lessee and not repossessed by

or tendered to the lessor, and for conforming goods lost or damaged within a

commercially reasonable time after risk of loss passes to the lessee (§

6A-2.1-219), (i) accrued and unpaid rent as of the date of entry of judgment in

favor of the lessor, (ii) the present value as of the same date of the rent for

the then remaining lease term of the lease agreement, and (iii) any incidental

damages allowed under § 6A-2.1-530, less expenses saved in consequence of

the lessee's default; and



   (b) For goods identified to the lease contract if the lessor

is unable after reasonable effort to dispose of them at a reasonable price or

the circumstances reasonably indicate that effort will be unavailing, (i)

accrued and unpaid rent as of the date of entry of judgment in favor of the

lessor, (ii) the present value as of the same date of the rent for the then

remaining lease term of the lease agreement, and (iii) any incidental damages

allowed under § 6A-2.1-530, less expenses saved in consequence of the

lessee's default.



   (2) Except as provided in subsection (3), the lessor shall

hold for the lessee for the remaining lease term of the lease agreement any

goods that have been identified to the lease contract and are in the lessor's

control.



   (3) The lessor may dispose of the goods at any time before

collection of the judgment for damages obtained pursuant to subsection (1). If

the disposition is before the end of the remaining lease term of the lease

agreement, the lessor's recovery against the lessee for damages is governed by

§ 6A-2.1-527 or 6A-2.1-528, and the lessor will cause an appropriate

credit to be provided against a judgment for damages to the extent that the

amount of the judgment exceeds the recovery available pursuant to §

6A-2.1-527 or 6A-2.1-528.



   (4) Payment of the judgment for damages obtained pursuant to

subsection (1) entitles the lessee to the use and possession of the goods not

then disposed of for the remaining lease term of and in accordance with the

lease agreement.



   (5) After default by the lessee under the lease contract of

the type described in § 6A-2.1-523(1) or 6A-2.1-523(3)(a) or, if agreed,

after other default by the lessee, a lessor who is held not entitled to rent

under this section must nevertheless be awarded damages for non-acceptance

under § 6A-2.1-527 or 6A-2.1-528.



History of Section.

(P.L. 1991, ch. 305, § 1.)