N.Y. Uniform Commercial Code Law Section 2-A-523
Lessor’s Remedies

Section 2-A-523. Lessor’s Remedies.

(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 (Section 2-A-510), the lessee is in default under the lease contract and the lessor may:

(a)

cancel the lease contract (Section 2-A-505 (1));

(b)

proceed respecting goods not identified to the lease contract (Section 2-A-524);

(c)

withhold delivery of the goods and take possession of goods previously delivered (Section 2-A-525);

(d)

stop delivery of the goods by any bailee (Section 2-A-526);

(e)

dispose of the goods and recover damages (Section 2-A-527), or retain the goods and recover damages (Section 2-A-528), or in a proper case recover rent (Section 2-A-529);

(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 under 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).

Source: Section 2-A-523 — Lessor's Remedies, https://www.­nysenate.­gov/legislation/laws/UCC/2-A-523 (updated Sep. 22, 2014; accessed Oct. 26, 2024).

2‑A‑501
Default: Procedure 2‑A‑502
Notice After Default 2‑A‑503
Modification or Impairment of Rights and Remedies 2‑A‑504
Liquidation of Damages 2‑A‑505
Cancellation and Termination and Effect of Cancellation, Termination, Rescission, or Fraud on Rights and Remedies 2‑A‑506
Statute of Limitations 2‑A‑507
Proof of Market Rent: Time and Place 2‑A‑508
Lessee’s Remedies 2‑A‑509
Lessee’s Rights on Improper Delivery: Rightful Rejection 2‑A‑510
Installment Lease Contracts: Rejection and Default 2‑A‑511
Merchant Lessee’s Duties as to Rightfully Rejected Goods 2‑A‑512
Lessee’s Duties as to Rightfully Rejected Goods 2‑A‑513
Cure by Lessor of Improper Tender or Delivery 2‑A‑514
Waiver of Lessee’s Objections 2‑A‑515
Acceptance of Goods 2‑A‑516
Effect of Acceptance of Goods 2‑A‑517
Revocation of Acceptance of Goods 2‑A‑518
Cover 2‑A‑519
Lessee’s Damages for Non-delivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods 2‑A‑520
Lessee’s Incidental and Consequential Damages 2‑A‑521
Lessee’s Right to Specific Performance or Replevin 2‑A‑522
Lessee’s Right to Goods on Lessor’s Insolvency 2‑A‑523
Lessor’s Remedies 2‑A‑524
Lessor’s Right to Identify Goods to Lease Contract 2‑A‑525
Lessor’s Right to Possession of Goods 2‑A‑526
Lessor’s Stoppage of Delivery in Transit or Otherwise 2‑A‑527
Lessor’s Rights to Dispose of Goods 2‑A‑528
Lessor’s Damages for Non-acceptance, Failure to Pay, Repudiation, or Other Default 2‑A‑529
Lessor’s Action for the Rent 2‑A‑530
Lessor’s Incidental Damages 2‑A‑531
Standing to Sue Third Parties for Injury to Goods 2‑A‑532
Lessor’s Rights to Residual Interest
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Accessed:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 2-A-523’s source at nysenate​.gov

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