Sec. 523. (1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (IC 26-1-2.1-510), the lessee is in default under the lease contract and the lessor may:
(a) cancel the lease contract (IC 26-1-2.1-505(1));
(b) proceed respecting goods not identified to the lease contract (IC 26-1-2.1-524);
(c) withhold delivery of the goods and take possession of goods previously delivered (IC 26-1-2.1-525);
(d) stop delivery of the goods by any bailee (IC 26-1-2.1-526);
(e) dispose of the goods and recover damages (IC 26-1-2.1-527), or retain the goods and recover damages (IC 26-1-2.1-528), or in a proper case recover rent (IC 26-1-2.1-529); and
(f) exercise any other rights or pursue any other remedies provided in the lease contract.
(2) If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled under subsection (1), the lessor may recover the loss resulting in the ordinary course of events from the lessee's default as determined in any reasonable manner, together with incidental damages, less expenses saved in consequence of the lessee's default.
(3) If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease. In addition, unless otherwise provided in the lease contract:
(a) if the default substantially impairs the value of the lease contract to the lessor, the lessor may exercise the rights and pursue the remedies provided in subsection (1) or (2); or
(b) if the default does not substantially impair the value of the lease contract to the lessor, the lessor may recover as provided in subsection (2).
As added by P.L.189-1991, SEC.3. Amended by P.L.1-1992, SEC.136.
Structure Indiana Code
Article 1. Uniform Commercial Code
26-1-2.1-103. Definitions and Index of Definitions
26-1-2.1-104. Leases Subject to Other Statutes
26-1-2.1-105. Territorial Application of Article to Goods Covered by Certificate of Title
26-1-2.1-107. Waiver or Renunciation of Claim or Right After Default
26-1-2.1-108. Unconscionability
26-1-2.1-109. Option to Accelerate at Will
26-1-2.1-201. Statute of Frauds
26-1-2.1-202. Final Written Expression; Parol or Extrinsic Evidence
26-1-2.1-203. Seals Inoperative
26-1-2.1-204. Formation in General
26-1-2.1-206. Offer and Acceptance in Formation of Lease Contract
26-1-2.1-208. Modification, Rescission, and Waiver
26-1-2.1-209. Lessee Under Finance Lease as Beneficiary of Supply Contract
26-1-2.1-210. Express Warranties
26-1-2.1-212. Implied Warranty of Merchantability
26-1-2.1-213. Implied Warranty of Fitness for Particular Purpose
26-1-2.1-214. Exclusion or Modification of Warranties
26-1-2.1-215. Cumulation and Conflict of Warranties Express or Implied
26-1-2.1-216. Third-Party Beneficiaries of Express and Implied Warranties
26-1-2.1-218. Insurance and Proceeds
26-1-2.1-220. Effect of Default on Risk of Loss
26-1-2.1-221. Casualty to Identified Goods
26-1-2.1-301. Enforceability of Lease Contract
26-1-2.1-302. Title to and Possession of Goods
26-1-2.1-304. Subsequent Lease of Goods by Lessor
26-1-2.1-305. Sale or Sublease of Goods by Lessee
26-1-2.1-306. Priority of Certain Liens Arising by Operation of Law
26-1-2.1-307. Priority of Liens Related to Lease Contract
26-1-2.1-308. Special Rights of Creditors
26-1-2.1-309. Lessor's and Lessee's Rights When Goods Become Fixtures
26-1-2.1-310. Lessor's and Lessee's Rights When Goods Become Accessions
26-1-2.1-311. Subordination by Agreement; Persons Entitled to Priority
26-1-2.1-401. Insecurity; Adequate Assurance of Performance
26-1-2.1-402. Anticipatory Repudiation
26-1-2.1-403. Retraction of Anticipatory Repudiation
26-1-2.1-404. Substituted Performance
26-1-2.1-405. Excused Performance
26-1-2.1-406. Procedure on Excused Performance
26-1-2.1-407. Irrevocable Promises; Finance Leases
26-1-2.1-501. Default; Procedure
26-1-2.1-502. Notice After Default
26-1-2.1-503. Modification or Impairment of Rights and Remedies
26-1-2.1-504. Liquidation of Damages
26-1-2.1-506. Statute of Limitations
26-1-2.1-507. Proof of Market Rent; Time and Place
26-1-2.1-508. Lessee's Remedies
26-1-2.1-509. Lessee's Rights on Improper Delivery; Rightful Rejection
26-1-2.1-510. Installment Lease Contracts; Rejection and Default
26-1-2.1-511. Merchant Lessee's Duties as to Rightfully Rejected Goods
26-1-2.1-512. Lessee's Duties as to Rightfully Rejected Goods
26-1-2.1-513. Cure by Lessor of Improper Tender or Delivery; Replacement
26-1-2.1-514. Waiver of Lessee's Objections
26-1-2.1-515. Acceptance of Goods
26-1-2.1-516. Effect of Acceptance of Goods; Notice of Default; Burden of Establishing
26-1-2.1-517. Revocation of Acceptance of Goods
26-1-2.1-518. Cover; Substitute Goods
26-1-2.1-520. Lessee's Incidental and Consequential Damages
26-1-2.1-521. Lessee's Right to Specific Performance or Replevin
26-1-2.1-522. Lessee's Right to Goods on Lessor's Insolvency
26-1-2.1-523. Lessor's Remedies
26-1-2.1-524. Lessor's Right to Identify Goods to Lease Contract
26-1-2.1-525. Lessor's Right to Possession of Goods
26-1-2.1-526. Lessor's Stoppage of Delivery
26-1-2.1-527. Lessor's Rights to Dispose of Goods
26-1-2.1-528. Lessor's Damages for Nonacceptance or Repudiation
26-1-2.1-529. Lessor's Action for the Rent
26-1-2.1-530. Lessor's Incidental Damages
26-1-2.1-531. Standing to Sue Third Parties for Injury to Goods
26-1-2.1-532. Recovery by Lessor for Loss of or Damage to Residual Interest