KRS 355.2A-510: Installment lease contracts: rejection and default.

(1) Under an installment lease contract a lessee may reject any delivery that is

nonconforming if the nonconformity substantially impairs the value of that delivery

and cannot be cured or the nonconformity is a defect in the required documents; but

if the nonc onformity does not fall within subsection (2) and the lessor or the

supplier gives adequate assurance of its cure, the lessee must accept that delivery.

(2) Whenever nonconformity or default with respect to one (1) or more deliveries

substantially impairs the value of the installment lease contract as a whole there is a

default with respect to the whole. But, the aggrieved party reinstates the installment

lease contract as a whole if the aggrieved party accepts a nonconforming delivery

without seasonably notifying of cancellation or brings an action with respect only to

past deliveries or demands performance as to future deliveries.