N.Y. Uniform Commercial Code Law Section 2-A-527
Lessor’s Rights to Dispose of Goods


Section 2-A-527. Lessor’s Rights to Dispose of Goods.

(1)

After a default by a lessee under the lease contract of the type described in Section 2-A-523(1) or 2-A-523(3)(a) or after the lessor refuses to deliver or takes possession of goods (Section 2-A-525 or 2-A-526), or, if agreed, after other default by a lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale, or otherwise.

(2)

Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 2-A-504) or otherwise determined pursuant to agreement of the parties (Sections 1--302 and 2-A-503), if the disposition is by lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages (a) accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement, (b) the present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus the present value, as of the same date, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining lease term of the original lease agreement, and

(c)

any incidental damages allowed under Section 2-A-530, less expenses saved in consequence of the lessee’s default.

(3)

If the lessor’s disposition is by lease agreement that qualifies for treatment under subsection (2), the lessor may elect to proceed under subsection (2) or Section 2-A-528. If the lessor’s disposition is by lease agreement that for any reason does not qualify for treatment under subsection (2), or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods.

(4)

A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this Article.

(5)

The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessee’s security interest (Section 2-A-508(5)).

Source: Section 2-A-527 — Lessor's Rights to Dispose of Goods, https://www.­nysenate.­gov/legislation/laws/UCC/2-A-527 (updated Dec. 26, 2014; accessed Jul. 20, 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

Accessed:
Jul. 20, 2024

Last modified:
Dec. 26, 2014

§ 2-A-527’s source at nysenate​.gov

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