§ 25-2A-518. Cover; substitute goods. - North Carolina Statutes

§ 25‑2A‑518. Cover; substitute goods.

(1)        After a default bya lessor under the lease contract of the type described in G.S. 25‑2A‑508(1),or, if agreed, after other default by the lessor, the lessee may cover bymaking any purchase or lease of or contract to purchase or lease goods insubstitution for those due from the lessor.

(2)        Except as otherwiseprovided with respect to damages liquidated in the lease agreement (G.S. 25‑2A‑504)or otherwise determined pursuant to agreement of the parties (G.S. 25‑1‑302and G.S. 25‑2A‑503), if a lessee's cover is by a lease agreementsubstantially similar to the original lease agreement and the new leaseagreement is made in good faith and in a commercially reasonable manner, thelessee may recover from the lessor as damages (i) the present value, as of thedate of the commencement of the term of the new lease agreement, of the rentunder the new lease agreement applicable to that period of the new lease termwhich is comparable to the then remaining term of the original lease agreementminus the present value as of the same date of the total rent for the thenremaining lease term of the original lease agreement, and (ii) any incidentalor consequential damages, less expenses saved in consequence of the lessor'sdefault.

(3)        If a lessee's coveris by lease agreement that for any reason does not qualify for treatment undersubsection (2) of this section, or is by purchase or otherwise, the lessee mayrecover from the lessor as if the lessee had elected not to cover and G.S. 25‑2A‑519governs. (1993,c. 463, s. 1; 2006‑112, s. 8.)