1. (a) A lessor aggrieved under § 28:2A-523(a) may:

   1. (1) 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
   2. (2) Dispose of goods (§ 28:2A-527(a)) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
2. (b) 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.

Uniform Commercial Code Comment

“Value”. Section 1-201(44).

“Supplier”. Section 2A-103(1)(x).

“Rights”. Section 1-201(36).

“Lessor”. Section 2A-103(1)(p).

“Lease contract”. Section 2A-103(1)(l).

“Lease”. Section 2A-103(1)(j).

“Learn”. Section 1-201(25).

“Goods”. Section 2A-103(1)(h).

“Conforming”. Section 2A-103(1)(d).

Definitional Cross References: “Aggrieved party”. Section 1-201(2).

Purposes: The remedies provided by this section are available to the lessor (i) if there has been a default by the lessee which falls within Section 2A-523(1) or 2A-523(3)(a), or (ii) if there has been any other default for which the lease contract gives the lessor the remedies provided by this section. Under “(ii)”, the lease contract may give the lessor the remedies of identification and disposition provided by this section in various ways. For example, a lease provision might specifically refer to the remedies of identification and disposition, or it might refer to this section by number (i.e., 2A-524), or it might do so by a more general reference such as “all rights and remedies provided by Article 2A for default by the lessee.”

Changes: Revised to reflect leasing practices and terminology.

Uniform Statutory Source:Section 2-704.

History

July 22, 1992, D.C. Law 9-128, § 2(b), 39 DCR 3830

Prior Codifications

1981 Ed., § 28:2A-524.

Section References

This section is referenced in § 28:2A-402 and § 28:2A-523.