N.Y. Uniform Commercial Code 2-A-529 – Lessor's Action for the Rent
Section 2-A-529. Lessor's Action for the Rent.
Terms Used In N.Y. Uniform Commercial Code 2-A-529
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Goods: means all things that are movable at the time of
identification to the lease contract, or are fixtures
(Section 2-A-309), but the term does not include money,
documents, instruments, accounts, chattel paper, general
intangibles, or minerals or the like, including oil and gas,
before extraction. See N.Y. Uniform Commercial Code 2-A-103 - Lease: means a transfer of the right to possession and use
of goods for a term in return for consideration, but a sale,
including a sale on approval or a sale or return, or
retention or creation of a security interest is not a lease. See N.Y. Uniform Commercial Code 2-A-103 - Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lease agreement: means the bargain, with respect to the
lease, of the lessor and the lessee in fact as found in their
language or by implication from other circumstances including
course of dealing or usage of trade or course of performance
as provided in this Article. See N.Y. Uniform Commercial Code 2-A-103 - Lease contract: means the total legal obligation that
results from the lease agreement as affected by this Article
and any other applicable rules of law. See N.Y. Uniform Commercial Code 2-A-103 - Lessee: means a person who acquires the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103 - Lessor: means a person who transfers the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103 - Present value: means the amount as of a date certain of one
or more sums payable in the future, discounted to the date
certain. See N.Y. Uniform Commercial Code 2-A-103
(1) After default by the lessee under the lease contract of the type described in Section 2-A-523(1) or 2-A-523(3)(a) or, if agreed, after other default by the lessee, if the lessor complies with subsection (2), the lessor may recover from the lessee as damages:
(a) for goods accepted by the lessee and not repossessed by or
tendered to the lessor, and for conforming goods lost or
damaged within a commercially reasonable time after risk of
loss passes to the lessee (Section 2-A-219), (i) accrued and
unpaid 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 lease term of the lease
agreement, and (iii) any incidental damages allowed under
Section 2-A-530, less expenses saved in consequence of the
lessee's default; and
(b) for goods identified to the lease contract, if the lessor is
unable after reasonable effort to dispose of them at a
reasonable price or the circumstances reasonably indicate
that effort will be unavailing, (i) accrued and unpaid 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 lease term of the lease agreement, and
(iii) any incidental damages allowed under Section 2-A-530,
less expenses saved in consequence of the lessee's default.
(2) Except as provided in subsection (3), the lessor shall hold for the lessee for the remaining lease term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
(3) The lessor may dispose of the goods at any time before collection of the judgment for damages obtained pursuant to subsection (1). If the disposition is before the end of the remaining lease term of the lease agreement, the lessor's recovery against the lessee for damages is governed by Section 2-A-527 or Section 2-A-528, and the lessor will cause an appropriate credit to be provided against a judgment for damages to the extent that the amount of the judgment exceeds the recovery available pursuant to Section 2-A-527 or Section 2-A-528.
(4) Payment of the judgment for damages obtained pursuant to subsection (1) entitles the lessee to the use and possession of the goods not then disposed of for the remaining lease term of and in accordance with the lease agreement.
(5) After default by the lessee under the lease contract of the type described in Section 2-A-523 (1) or Section 2-A-523 (3)(a) or, if agreed, after other default by the lessee, a lessor who is held not entitled to rent under this section must nevertheless be awarded damages for non-acceptance under Section 2-A-527 or 2-A-528.