§ 554.13528 — Lessor’s damages for nonacceptance, failure to pay, repudiation, or other default

Iowa § 554.13528

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

default.
1. Exceptasotherwiseprovidedwithrespecttodamagesliquidatedintheleaseagreement
(section 554.13504) or otherwise determined pursuant to agreement of the parties (sections
554.1302 and 554.13503), if a lessor elects to retain the goods or a lessor elects to dispose of
the goods and the disposition is by lease agreement that for any reason does not qualify for
treatment under section 554.13527, subsection 2, or is by sale or otherwise, the lessor may
recover from the lessee as damages for a default of the type described in section 554.13523,
subsection1, orsection554.13523, subsection3, paragraph“a”, or, ifagreed, forotherdefault
of the lessee,
a. accruedandunpaidrentasofthedateofdefaultifthelesseehasnevertakenpossession
of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor
repossesses the goods or an earlier date on which the lessee makes a tender of the goods to
the lessor,
b. the present value as of the date determined under paragraph “a” of the total rent for
the then remaining lease term of the original lease agreement minus the present value as of
the same date of the market rent at the place where the goods are located computed for the
same lease term, and
c. any incidental damages allowed under section 554.13530, less expenses saved in
consequence of the lessee’s default.

2. If the measure of damages provided in subsection 1 is inadequate to put a lessor in
as good a position as performance would have, the measure of damages is the present
value of the profit, including reasonable overhead, the lessor would have made from full
performance by the lessee, together with any incidental damages allowed under section
554.13530, due allowance for costs reasonably incurred and due credit for payments or
proceeds of disposition.