§ 26-1-2.1-401 — Insecurity; adequate assurance of performance

Indiana § 26-1-2.1-401

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: Leases

Text

(1) A lease contract imposes an
obligation on each party that the other's expectation of receiving due
performance will not be impaired.
(2) If reasonable grounds for insecurity arise with respect to the
performance of either party, the insecure party may demand in writing
adequate assurance of due performance. Until the insecure party
receives that assurance, if commercially reasonable the insecure party
may suspend any performance for which the insecure party has not
already received the agreed return.
(3) A repudiation of the lease contract occurs if assurance of due
performance adequate under the circumstances of the particular case
is not provided to the insecure party within a reasonable time, not to
exceed thirty (30) days after receipt of a demand by the other party.
(4) Between merchants, the reasonableness of grounds for insecurity
and the adequacy of any assurance offered must be determined
according to commercial standards.
(5) Acceptance of any nonconforming delivery or payment does not
prejudice the aggrieved party's right to demand adequate assurance of
future performance.

Legislative History

As added by P.L.189-1991, SEC.3.