41-02.1-77. (2A-529) Lessor's action for the rent.
448 words·~2 min read·
/nd/title-41/chapter-41-02-1-leases/41-02-1-77·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. After default by the lessee under the lease contract as described in subsection 1 of
section 41-02.1-71 or subdivision a of subsection 3 of section 41-02.1-71 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 41-02.1-28),
accrued and unpaid rent as of the date of entry of judgment in favor of the lessor
the present value as of the same date of the rent for the then remaining lease
term of the lease agreement, and any incidental damages allowed under section
41-02.1-78, 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, accrued and unpaid rent as of the date of
entry of judgment in favor of the lessor, the present value as of the same date of
the rent for the then remaining lease term of the lease agreement, and any
incidental damages allowed under section 41-02.1-78, and the lessor will cause
an appropriate credit to be provided against any judgment for damages to the
extent that the amount of the judgment exceeds the recovery available under
section 41-02.1-75 or 41-02.1-76, 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 under 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 will be governed by section 41-02.1-75 or 41-02.1-76.
4. Payment of the judgment for damages obtained under subsection 1 entitles the lessee
to 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 a lessee has wrongfully rejected or revoked acceptance of goods, has failed to
pay rent then due, or has repudiated (section 41-02.1-42), a lessor who is held not
entitled to rent under this section must nevertheless be awarded damages for
nonacceptance under sections 41-02.1-75 and 41-02.1-76.