U.C.C. - ARTICLE 2A - LEASES
..PART 4. PERFORMANCE OF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED
§ 2A-406. PROCEDURE ON EXCUSED PERFORMANCE.
- (1) If the lessee receives
notification of a material or indefinite delay or an allocation justified under
Section 2A-405, the lessee may by written notification
to the lessor as to any goods involved,
and with respect to all of the goods if
under an installment
lease contract the value of the whole lease
contract is substantially impaired (Section 2A-510):
- (a) terminate the lease contract (Section 2A-505(2)); or
- (b) except in a finance lease that is not a consumer lease, modify the lease contract by accepting the available quota in substitution, with due allowance from the rent payable for the balance of the lease term for the deficiency but without further right against the lessor.
- (2) If, after receipt of a notification from the lessor under Section 2A-405, the lessee fails so to modify the lease agreement within a reasonable time not exceeding 30 days, the lease contract lapses with respect to any deliveries affected.
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© Copyright 2005 by The American Law Institute and the National Conference of Commissioners on Uniform State Laws; reproduced, published and distributed with the permission of the Permanent Editorial Board for the Uniform Commercial Code for the limited purposes of study, teaching, and academic research.