KRS 355.2A-402: Anticipatory repudiation.

If either party repudiates a lease contract with respect to a performance not yet due under

the lease contract, the loss of which performance will substantially impair the value of the

lease contract to the other, the aggrieved party may:

(1) For a commerc ially reasonable time, await retraction of repudiation and

performance by the repudiating party;

(2) Make demand pursuant to KRS 355.2A -401 and await assurance of future

performance adequate under the circumstances of the particular case; or

(3) Resort to any right or remedy upon default under the lease contract or this article,

even though the aggrieved party has notified the repudiating party that the aggrieved

party would await the repudiating party's performance and assurance and has urged

retraction. In addition, whether or not the aggrieved party is pursuing one (1) of the

foregoing remedies, the aggrieved party may suspend performance or, if the

aggrieved party is the lessor, proceed in accordance with the provisions of this

article on the lessor's ri ght to identify goods to the lease contract notwithstanding

default or to salvage unfinished goods (KRS 355.2A-524).