400.2A-527. Lessor's rights to dispose of goods.

MISSOURI STATUTES AND CODES

400.2A-527. Lessor's rights to dispose of goods.

Lessor's rights to dispose of goods.

400.2A-527. (1) After a default by a lessee under thelease contract of the type described in section 400.2A-523(1) or400.2A-523(3)(a) or after the lessor refuses to deliver or takespossession of goods (Section 400.2A-525 or 400.2A-526), or, ifagreed, after other default by a lessee, the lessor may disposeof the goods concerned or the undelivered balance thereof bylease, sale or otherwise.

(2) Except as otherwise provided with respect to damagesliquidated in the lease agreement (Section 400.2A-504) orotherwise determined pursuant to agreement of the parties(Sections 400.1-102(3) and 400.2A-503), if the disposition is bylease agreement substantially similar to the original leaseagreement and the new lease agreement is made in good faith andin a commercially reasonable manner, the lessor may recover fromthe lessee as damages (i) accrued and unpaid rent as of the dateof the commencement of the term of the new lease agreement, (ii)the present value, as of the same date, of the total rent for thethen remaining lease term of the original lease agreement minusthe present value, as of the same date, of the rent under the newlease agreement applicable to that period of the new lease termwhich is comparable to the then remaining term of the originallease agreement, and (iii) any incidental damages allowed undersection 400.2A-530, less expenses saved in consequence of thelessee's default.

(3) If the lessor's disposition is by lease agreement thatfor any reason does not qualify for treatment under subsection(2), or is by sale or otherwise, the lessor may recover from thelessee as if the lessor had elected not to dispose of the goodsand section 400.2A-528 governs.

(4) A subsequent buyer or lessee who buys or leases fromthe lessor in good faith for value as a result of a dispositionunder this section takes the goods free of the original leasecontract and any rights of the original lessee even though thelessor fails to comply with one or more of the requirements ofthis Article.

(5) The lessor is not accountable to the lessee for anyprofit made on any disposition. A lessee who has rightfullyrejected or justifiably revoked acceptance shall account to thelessor for any excess over the amount of the lessee's securityinterest (Section 400.2A-508(5)).