57A-2A-406 Procedure on excused performance.
Procedure on excused performance.
If the lessee receives
notification of a material or
indefinite delay or an
allocation justified under
§ 57A-2A-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 as in § 57A-2A-510:
Terminate the lease contract pursuant to § 57A-2A-505(2); or
Except in a finance 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.
If, after receipt of a notification from the lessor under § 57A-2A-405, the lessee fails so
to modify the lease agreement within a reasonable time not exceeding thirty days, the
lease contract lapses with respect to any deliveries affected.
SL 1989, ch 419, § 1; SL 1990, ch 390, § 14.