§ 26-1-2.1-524 — Lessor's right to identify goods to lease contract

Indiana § 26-1-2.1-524

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

Text

(1) After default by the lessee under the
lease contract of the type described in IC 26-1-2.1-523(1) or IC 26-1-2.1-523(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 (IC 26-1-2.1-527(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.

Legislative History

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