Uniform Statutory Source: Former section 9-501 (now codified as sections 9-601 through 9-604).
Changes: Substantially revised.
1. Subsection (1) is new and represents a departure from the Article on Secured Transactions (Article 9) as the subsection makes clear that whether a party to the lease agreement is in default is determined by this article as well as the agreement. Sections 2A-508 and 2A-523. It further departs from article 9 in recognizing the potential default of either party, a function of the bilateral nature of the obligations between the parties to the lease contract.
2. Subsection (2) is a version of the first sentence of section 9-601(a), revised to reflect leasing terminology.
3. Subsection (3), an expansive version of the second sentence of section 9-601(a), lists the procedures that may be followed by the party seeking enforcement; in effect, the scope of the procedures listed in subsection (3) is consistent with the scope of the procedures available to the foreclosing secured party.
4. Subsection (4) establishes that the parties' rights and remedies are cumulative. DeKoven, Leases of Equipment: Puritan Leasing Company v. August, A Dangerous Decision, 12 U.S.F.L.Rev. 257, 276-80 (1978). Cumulation, and largely unrestricted selection, of remedies is allowed in furtherance of the general policy of the code, stated in section 1-305, that remedies be liberally administered to put the aggrieved party in as good a position as if the other party had fully performed. Therefor, cumulation of, or selection among, remedies is available to the extent necessary to put the aggrieved party in as good a position as it would have been in had there been full performance. However, cumulation of, or selection among, remedies is not available to the extent that the cumulation or selection would put the aggrieved party in a better position than it would have been in had there been full performance by the other party.
5. Section 9-602, which, among other things, states that certain rules, to the extent they give rights to the debtor and impose duties on the secured party, may not be waived or varied, is not incorporated in this article. Given the significance of freedom of contract in the development of the common law as it applies to bailments for hire and the lessee's lack of an equity of redemption, there is no reason to impose that restraint.
Sections 1-305, 2A-508, and 2A-523, and article 9, especially sections 9-601 and 9-602.
Definitional Cross References:
"Goods". Section 2A-103(1)(h).
"Lease agreement". Section 2A-103(1)(k).
"Lease contract". Section 2A-103(1)(l).
"Lessee". Section 2A-103(1)(n).
"Lessor". Section 2A-103(1)(p).
"Party". Section 1-201(b)(26).
"Remedy". Section 1-201(b)(32).
"Rights". Section 1-201(b)(34).