North Dakota § 41-02.1-75 (2A-527) Lessor's rights to dispose of goods

North Dakota Statutes

§ 41-02.1-75 — (2A-527) Lessor's rights to dispose of goods

North Dakota § 41-02.1-75

Title 41Uniform Commercial Code

Ch. 41-02.1Leases

This text of North Dakota § 41-02.1-75 ((2A-527) Lessor's rights to dispose of goods) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 41-02.1-75 (2026).

Text

1.After a default by a lessee under the lease contract described in subsection 1 of section 41-02.1-71 or in subdivision a of subsection 3 of section 41-02.1-71 or after the lessor refuses to deliver or takes possession of goods (section 41-02.1-73 or 41-02.1-74), the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale, or otherwise.

2.Except as otherwise provided with respect to damages liquidated in the lease agreement (section 41-02.1-52) or determined by agreement of the parties (sections 41-01-16 and 41-02.1-51), if the disposition is by lease agreement substantially similar to the original lease agreement and the lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages ac

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1. After a default by a lessee under the lease contract described in subsection 1 of
section 41-02.1-71 or in subdivision a of subsection 3 of section 41-02.1-71 or after the
lessor refuses to deliver or takes possession of goods (section 41-02.1-73 or
41-02.1-74), the lessor may dispose of the goods concerned or the undelivered
balance thereof by lease, sale, or otherwise.
2. Except as otherwise provided with respect to damages liquidated in the lease
agreement (section 41-02.1-52) or determined by agreement of the parties (sections
41-01-16 and 41-02.1-51), if the disposition is by lease agreement substantially similar
to the original lease agreement and the lease agreement is made in good faith and in
a commercially reasonable manner, the lessor may recover from the lessee as
damages accrued and unpaid rent as of the date of the commencement of the new
term of the new lease agreement, the present value, as of the same date, of the total
rent for the remaining lease term of the original lease agreement minus the present

value, as of the same date, of the rent under the new lease agreement applicable to
that period of the new lease term which is comparable to the then remaining term of
the original lease agreement, and any incidental damages allowed under section
41-02.1-78, less expenses saved in consequence of the lessee's default.
3. If the lessor's disposition is by lease agreement that for any reason does not qualify for
treatment under subsection 2, or is by sale or otherwise, the lessor may recover from
the lessee as if the lessor had elected not to dispose of the goods and section
41-02.1-76 governs.
4. A subsequent buyer or lessee who buys or leases from the lessor in good faith for
value as a result of a disposition under this section takes the goods free of the original
lease contract and any rights of the original lessee even though the lessor fails to
comply with one or more of the requirements of this chapter.
5. The lessor is not accountable to the lessee for any profit made on any disposition. A
lessee who has rightfully rejected or justifiably revoked acceptance shall account to
the lessor for any excess over the amount of the lessee's security interest
(subsection 5 of section 41-02.1-56).