§ 25-2A-406. Procedure on excused performance. - North Carolina Statutes

§25‑2A‑406.  Procedure on excused performance.

(1)        If the lesseereceives notification of a material or indefinite delay or an allocationjustified under G.S. 25‑2A‑405, the lessee may, by writtennotification to the lessor as to any goods involved, and with respect to all ofthe goods if under an installment lease contract, the value of the whole leasecontract is substantially impaired (G.S. 25‑2A‑510):

(a)        terminate the leasecontract (G.S. 25‑2A‑505(2)); or

(b)        except in a financelease that is not a consumer lease, modify the lease contract by accepting theavailable quota in substitution, with due allowance from the rent payable forthe balance of the lease term for the deficiency but without further rightagainst the lessor.

(2)        If, after receiptof a notification from the lessor under G.S. 25‑2A‑405, the lesseefails so to modify the lease agreement within a reasonable time not exceeding30 days, the lease contract lapses with respect to any deliveries affected. (1993,c. 463, s. 1.)