(1)        After default by the lessee under the lease contract of the type described in N.C. Gen. Stat. § 25-2A-523(1) or N.C. Gen. Stat. § 25-2A-523(3)(a) or, if agreed, after other default by the lessee, the lessor may:

(a)        identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor’s or the supplier‘s possession or control; and

(b)        dispose of goods (N.C. Gen. Stat. § 25-2A-527(1)) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.

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

Terms Used In North Carolina General Statutes 25-2A-524

  • Contract: A legal written agreement that becomes binding when signed.
  • Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (N. See North Carolina General Statutes 25-2A-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 North Carolina General Statutes 25-2A-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 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 North Carolina General Statutes 25-2A-103
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See North Carolina General Statutes 25-2A-103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See North Carolina General Statutes 25-2A-103
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See North Carolina General Statutes 25-2A-103
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