§ 26-1-2.1-406 — Procedure on excused performance

Indiana § 26-1-2.1-406

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

Text

(1) If the lessee receives notification of
a material or indefinite delay or an allocation justified under IC 26-1-2.1-405, 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 (IC 26-1-2.1-510):
(a) terminate the lease contract (IC 26-1-2.1-505(2)); or
(b) 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.
(2) If, after receipt of a notification from the lessor under IC 26-1-2.1-405, the lessee fails so to modify the lease agreement within
a reasonable time not exceeding thirty (30) days, the lease contract
lapses with respect to any deliveries affected.

Legislative History

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