§ 4-2.5-529 — Lessor's action for the rent

Colorado § 4-2.5-529

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

(1) After default by the lessee under
the lease contract of the type described in section 4-2.5-523 (1), or 4-2.5-523 (3)(a)
or, if agreed, after other default by the lessee, if the lessor complies with
subsection (2) of this section, the lessor may recover from the lessee as damages:

(a) For goods accepted by the lessee and not repossessed by or tendered to
the lessor, and for conforming goods lost or damaged within a commercially
reasonable time after risk of loss passes to the lessee (section 4-2.5-219), (i)
accrued and unpaid rent as of the date of entry of judgment in favor of the lessor,
(ii) the present value as of the same date of the total rent for the then remaining
lease term of the lease agreement, and (iii) any incidental damages allowed under
section 4-2.5-530, less expenses saved in consequence of the lessee's default; and

(b) For goods identified to the lease contract if the lessor is unable after
reasonable effort to dispose of them at a reasonable price or the circumstances
reasonably indicate that effort will be unavailing, (i) accrued and unpaid rent as of
the date of entry of judgment in favor of the lessor, (ii) the present value as of the
same date of the rent for the then remaining lease term of the lease agreement,
and (iii) any incidental damages allowed under section 4-2.5-530, less expenses
saved in consequence of the lessee's default.

(2) Except as provided in subsection (3) of this section, the lessor shall hold
for the lessee for the remaining lease term of the lease agreement any goods that
have been identified to the lease contract and are in the lessor's control.

(3) The lessor may dispose of the goods at any time before collection of the
judgment for damages obtained pursuant to subsection (1) of this section. If the
disposition is before the end of the remaining lease term of the lease agreement,
the lessor's recovery against the lessee for damages is governed by section 4-2.5-527 or section 4-2.5-528 and the lessor will cause an appropriate credit to be
provided against a judgment for damages to the extent that the amount of the
judgment exceeds the recovery available pursuant to section 4-2.5-527 or 4-2.5-528.

(4) Payment of the judgment for damages obtained pursuant to subsection
(1) of this section entitles the lessee to the use and possession of the goods not
then disposed of for the remaining lease term of and in accordance with the lease
agreement.

(5) After a lessee has wrongfully rejected or revoked acceptance of goods,
has failed to pay rent then due, or has repudiated (section 4-2.5-402), a lessor who
is held not entitled to rent under this section must nevertheless be awarded
damages for non-acceptance under sections 4-2.5-527 and 4-2.5-528.

Legislative History

Source: L. 91: Entire article added, p. 316, � 1, effective July 1, 1992.