§2A-527. Lessor's rights to dispose of goods

Link to law: http://legislature.vermont.gov/statutes/section/09A/002A/00527
Published: 2015

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The Vermont Statutes Online



Uniform Commercial Code






2A-527. Lessor's rights to dispose of goods

(1) After a

default by a lessee under the lease contract of the type described in section

2A-523(1) or 2A-523(3)(a) of this title or after the lessor refuses to deliver

or takes possession of goods (§ 2A-525 or 2A-526), or, if agreed, after other

default by a lessee, the lessor may dispose of the goods concerned or the

undelivered balance thereof by lease, sale, or otherwise.

(2) Except as

otherwise provided with respect to damages liquidated in the lease agreement (§

2A-504) or otherwise determined pursuant to agreement of the parties (§§ 1-302

and 2A-503), if the disposition is by lease agreement substantially similar to

the original lease agreement and the new lease agreement is made in good faith

and in a commercially reasonable manner, the lessor may recover from the lessee

as damages (i) accrued and unpaid rent as of the date of the commencement of

the term 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 lease

agreement minus the present value, as of the same date, of the rent under the

new lease agreement applicable to that period of the new lease term which is

comparable to the then remaining term of the original lease agreement, and

(iii) any incidental damages allowed under section 2A-530 of this title, less

expenses saved in consequence of the lessee's default.

(3) If the

lessor's disposition is by lease agreement that for any reason does not qualify

for treatment under subsection (2) of this section, or is by sale or otherwise,

the lessor may recover from the lessee as if the lessor had elected not to

dispose of the goods and section 2A-528 of this title governs.

(4) A subsequent

buyer or lessee who buys or leases from the lessor in good faith for value as a

result of a disposition under this section takes the goods free of the original

lease contract and any rights of the original lessee even though the lessor

fails to comply with one or more of the requirements of this article.

(5) The lessor

is not accountable to the lessee for any profit made on any disposition. A

lessee who has rightfully rejected or justifiably revoked acceptance shall

account to the lessor for any excess over the amount of the lessee's security

interest (§ 2A-508(5)). (Added 1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1,

1995; amended 2007, No. 99 (Adj. Sess.), § 9.)