§ 25-2A-529. Lessor's action for the rent. - North Carolina Statutes

§25‑2A‑529.  Lessor's action for the rent.

(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, if the lessor complies with subsection (2) of this section, the lessormay recover from the lessee as damages:

(a)        for goods acceptedby the lessee and not repossessed by or tendered to the lessor, and forconforming goods lost or damaged within a commercially reasonable time afterrisk of loss passes to the lessee (G.S. 25‑2A‑219), (i) accrued andunpaid rent as of the date of entry of judgment in favor of the lessor, (ii)the present value as of the same date of the rent for the then remaining leaseterm of the lease agreement, and (iii) any incidental damages allowed underG.S. 25‑2A‑530, less expenses saved in consequence of the lessee'sdefault; and

(b)        for goods identifiedto the lease contract if the lessor is unable after reasonable effort todispose of them at a reasonable price or the circumstances reasonably indicatethat effort will be unavailing, (i) accrued and unpaid rent as of the date ofentry of judgment in favor of the lessor, (ii) the present value as of the samedate of the rent for the then remaining lease term of the lease agreement, and(iii) any incidental damages allowed under G.S. 25‑2A‑530, lessexpenses saved in consequence of the lessee's default.

(2)        Except as providedin subsection (3) of this section, the lessor shall hold for the lessee for theremaining lease term of the lease agreement any goods that have been identifiedto the lease contract and are in the lessor's control.

(3)        The lessor maydispose of the goods at any time before collection of the judgment for damagesobtained pursuant to subsection (1) of this section.  If the disposition isbefore the end of the remaining lease term of the lease agreement, the lessor'srecovery against the lessee for damages is governed by G.S. 25‑2A‑527or G.S. 25‑2A‑528, and the lessor will cause an appropriate creditto be provided against a judgment for damages to the extent that the amount ofthe judgment exceeds the recovery available pursuant to G.S. 25‑2A‑527or G.S. 25‑2A‑528.

(4)        Payment of thejudgment for damages obtained pursuant to subsection (1) of this section,entitles the lessee to the use and possession of the goods not then disposed offor the remaining lease term of and in accordance with the lease agreement.

(5)        After a 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, a lessor who is held not entitled to rent under this section mustnevertheless be awarded damages for nonacceptance under G.S. 25‑2A‑527or G.S. 25‑2A‑528. (1993, c. 463, s. 1.)