Section 2-A-524. Lessor's Right to Identify Goods to Lease Contract.(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.
Last modified: February 3, 2019