Section 2-A-524. Lessor's Right to Identify Goods to Lease Contract  


Latest version.
  • (1)  After  default by the lessee under the lease contract of the type
      described in Section 2-A-523  (1)  or  Section  2-A-523  (3)(a)  or,  if
      agreed, after other default by the lessee, the lessor may:
             (a) identify  to  the lease contract conforming goods not already
                 identified if at the time the lessor learned of  the  default
                 they  were  in  the  lessor's or the supplier's possession or
                 control; and
             (b) dispose of goods (Section 2-A-527(1)) that demonstrably  have
                 been  intended  for the particular lease contract even though
                 those goods are unfinished.
        (2) If the  goods  are  unfinished,  in  the  exercise  of  reasonable
      commercial  judgment  for the purposes of avoiding loss and of effective
      realization, an aggrieved lessor or the  supplier  may  either  complete
      manufacture and wholly identify the goods to the lease contract or cease
      manufacture and lease, sell, or otherwise dispose of the goods for scrap
      or salvage value or proceed in any other reasonable manner.