{"data":{"id":"us-ky/krs-355.2a-401","jurisdiction":"us-ky","citation":"KRS 355.2A-401","heading":"Insecurity: adequate assurance of performance.","body":"(1) A lease contract imposes an obligation on each party that the other's expectation of\nreceiving due performance will not be impaired.\n(2) If reasonable grounds for insecurity arise with respect to the performance of either\nparty, the insecure party may dema nd in writing adequate assurance of due\nperformance. Until the insecure party receives that assurance, if commercially\nreasonable the insecure party may suspend any performance for which he has not\nalready received the agreed return.\n(3) A repudiation of the lease contract occurs if assurance of due performance adequate\nunder the circumstances of the particular case is not provided to the insecure party\nwithin a reasonable time, not to exceed thirty (30) days after receipt of a demand by\nthe other party.\n(4) Between merchants, the reasonableness of grounds for insecurity and the adequacy\nof any assurance offered must be determined according to commercial standards.\n(5) Acceptance of any nonconforming delivery or payment does not prejudice the\naggrieved party's right to demand adequate assurance of future performance.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33390","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"71a5565b85176f8decd66ac03d6464013a43b9960b6c12087522d3df68272c85","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-311","next":"us-ky/krs-355.2a-402"},"notice":"GroundRules: Original legal text. Not legal advice."}