§490:2A-406 Procedure on excused performance. (a) If the lessee receives notification of a material or indefinite delay or an allocation justified under section 490:2A-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 490:2A-510):
(1) Terminate the lease contract (section 490:2A-505(b)); or
(2) 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.
(b) If, after receipt of a notification from the lessor under section 490:2A-405, the lessee fails so to modify the lease agreement within a reasonable time not exceeding thirty days, the lease contract lapses with respect to any deliveries affected. [L 1991, c 40, pt of §1]
Section: Previous 490-2a-310 490-2a-311 490-2a-401 490-2a-402 490-2a-403 490-2a-404 490-2a-405 490-2a-406 490-2a-407 490-2a-501 490-2a-502 490-2a-503 490-2a-504 490-2a-505 490-2a-506 NextLast modified: October 27, 2016