§ 2-A-401 — Insecurity: Adequate Assurance of Performance

Section 2-A-401. Insecurity: Adequate Assurance of Performance.\n (1) A lease contract imposes an obligation on each party that the\nother's expectation of receiving due performance will not be impaired.\n (2) If reasonable grounds for insecurity arise with respect to the\nperformance of either party, the insecure party may demand in writing\nadequate assurance of due performance. Until the insecure party receives\nthat assurance, if commercially reasonable the insecure party may\nsuspend any performance for which he or she has not already received the\nagreed return.\n (3) A repudiation of the lease contract occurs if assurance of due\nperformance adequate under the circumstances of the particular case is\nnot provided to the insecure party within a reasonable time, not to\nexceed thirty days after receipt of a demand by the other party.\n (4) Between merchants, the reasonableness of grounds for insecurity\nand the adequacy of any assurance offered must be determined according\nto commercial standards.\n (5) Acceptance of any nonconforming delivery or payment does not\nprejudice the aggrieved party's right to demand adequate assurance of\nfuture performance.\n