N.Y. Uniform Commercial Code Law § 2-a-529: Lessor's Action for the Rent

Section 2-A-529. Lessor's Action for the Rent.

(1) After default by the lessee under the lease contract of the type

described in Section 2-A-523(1) or 2-A-523(3)(a) or, if agreed, after

other default by the lessee, if the lessor complies with subsection (2),

the lessor may recover from the lessee as damages:

(a) for goods accepted by the lessee and not repossessed by or

tendered to the lessor, and for conforming goods lost or

damaged within a commercially reasonable time after risk of

loss passes to the lessee (Section 2-A-219), (i) accrued and

unpaid rent as of the date of entry of judgment in favor of

the lessor, (ii) the present value as of the same date of the

rent for the then remaining lease term of the lease

agreement, and (iii) any incidental damages allowed under

Section 2-A-530, less expenses saved in consequence of the

lessee's default; and

(b) for goods identified to the lease contract, if the lessor is

unable after reasonable effort to dispose of them at a

reasonable price or the circumstances reasonably indicate

that effort will be unavailing, (i) accrued and unpaid rent

as of the date of entry of judgment in favor of the lessor,

(ii) the present value as of the same date of the rent for

the then remaining lease term of the lease agreement, and

(iii) any incidental damages allowed under Section 2-A-530,

less expenses saved in consequence of the lessee's default.

(2) Except as provided in subsection (3), the lessor shall hold for

the lessee for the remaining lease term of the lease agreement any goods

that have been identified to the lease contract and are in the lessor's

control.

(3) The lessor may dispose of the goods at any time before collection

of the judgment for damages obtained pursuant to subsection (1). If the

disposition is before the end of the remaining lease term of the lease

agreement, the lessor's recovery against the lessee for damages is

governed by Section 2-A-527 or Section 2-A-528, and the lessor will

cause an appropriate credit to be provided against a judgment for

damages to the extent that the amount of the judgment exceeds the

recovery available pursuant to Section 2-A-527 or Section 2-A-528.

(4) Payment of the judgment for damages obtained pursuant to

subsection (1) entitles the lessee to the use and possession of the

goods not then disposed of for the remaining lease term of and in

accordance with the lease agreement.

(5) After default by the lessee under the lease contract of the type

described in Section 2-A-523 (1) or Section 2-A-523 (3)(a) or, if

agreed, after other default by the lessee, a lessor who is held not

entitled to rent under this section must nevertheless be awarded damages

for non-acceptance under Section 2-A-527 or 2-A-528.