KRS 355.2A-405: Excused performances.

Subject to KRS 355.2A-404 on substituted performance, the following rules apply:

(1) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who

complies with subsections (2) and (3) is not a default under the lease contract if

performance as agreed has been made impracticable by the occurrence of a

contingency the nonoccurrence of which was a basic assumption on which the lease

contract was made or by compliance in good faith with any applicable foreign or

domestic governmental regul ation or order, whether or not the regulation or order

later proves to be invalid.

(2) If the causes mentioned in subsection (1) affect only part of the lessor's or the

supplier's capacity to perform, he shall allocate production and deliveries among his

customers but at his option may include regular customers not then under contract

for sale or lease as well as his own requirements for further manufacture. He may so

allocate in any manner that is fair and reasonable.

(3) The lessor seasonably shall notify the lessee and in the case of a finance lease the

supplier seasonably shall notify the lessor and the lessee, if known, that there will

be delay or nondelivery and, if allocation is required under subsection (2), of the

estimated quota thus made available for the lessee.