KRS 355.2-609: Right to adequate assurance of performance.

(1) A contract for sale imposes an obligation on each party that the other's expectation

of receiving due performance will not be impaired. When reasonable grounds for

insecurity arise with respect to the performance of either party the other may in

writing demand adequate assurance of due performance and until he receives such

assurance may if commercially reasonable suspend any performance for which he

has not already received the agreed return.

(2) Between merchants the reasonableness of grounds for insecuri ty and the adequacy

of any assurance offered shall be determined according to commercial standards.

(3) Acceptance of any improper delivery or payment does not prejudice the aggrieved

party's right to demand adequate assurance of future performance.

(4) After receipt of a justified demand failure to provide within a reasonable time not

exceeding thirty (30) days such assurance of due performance as is adequate under

the circumstances of the particular case is a repudiation of the contract.