KRS 355.2A-401: Insecurity: adequate assurance of performance.

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

receiving due performance will not be impaired.

(2) If reasonable grounds for insecurity arise with respect to the performance of either

party, the insecure party may dema nd in writing adequate assurance of due

performance. Until the insecure party receives that assurance, if commercially

reasonable the insecure party may suspend any performance for which he has not

already received the agreed return.

(3) A repudiation of the lease contract occurs if assurance of due performance adequate

under the circumstances of the particular case is not provided to the insecure party

within a reasonable time, not to exceed thirty (30) days after receipt of a demand by

the other party.

(4) Between merchants, the reasonableness of grounds for insecurity and the adequacy

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

(5) Acceptance of any nonconforming delivery or payment does not prejudice the

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