§ 25-2A-524. Lessor's right to identify goods to lease contract. - North Carolina Statutes

§25‑2A‑524.  Lessor's right to identify goods to lease contract.

(1)        After default bythe lessee under the lease contract of the type described in G.S. 25‑2A‑523(1)or G.S. 25‑2A‑523(3)(a) or, if agreed, after other default by thelessee, the lessor may:

(a)        identify to thelease contract conforming goods not already identified if at the time thelessor learned of the default they were in the lessor's or the supplier'spossession or control; and

(b)        dispose of goods(G.S. 25‑2A‑527(1)) that demonstrably have been intended for theparticular lease contract even though those goods are unfinished.

(2)        If the goods areunfinished, in the exercise of reasonable commercial judgment for the purposesof avoiding loss and of effective realization, an aggrieved lessor or thesupplier may either complete manufacture and wholly identify the goods to thelease contract or cease manufacture and lease, sell, or otherwise dispose ofthe goods for scrap or salvage value or proceed in any other reasonable manner.(1993, c. 463, s. 1.)