{"data":{"id":"us-ky/krs-355.2a-504","jurisdiction":"us-ky","citation":"KRS 355.2A-504","heading":"Liquidation of damages.","body":"(1) Damages payable by either party for default, or any other act or omission, including\nindemnity for loss or diminution of anticipated tax benefits or loss or damage to\nlessor's residual interest, may be liquidated in the lease agreement but only at an\namount or by a formula that is reasonable in light of the then anticipated harm\ncaused by the default or other act or omission.\n(2) If the lease agreement provides for liquidation of damages, and such provision does\nnot comply with subsection (1), or such provi sion is an exclusive or limited remedy\nthat circumstances cause to fail of its essential purpose, remedy may be had as\nprovided in this article.\n(3) If the lessor justifiably withholds or stops delivery of goods because of the lessee's\ndefault or insolvenc y (KRS 355.2A -525 or 355.2A -526), the lessee is entitled to\nrestitution of any amount by which the sum of his payments exceeds:\n(a) The amount to which the lessor is entitled by virtue of terms liquidating the\nlessor's damages in accordance with subsection (1); or\n(b) In the absence of those terms, twenty percent (20%) of the then present value\nof the total rent the lessee was obligated to pay for the balance of the lease\nterm, or, in the case of a consumer lease, the lesser of such amount or five\nhundred dollars ($500).\n(4) A lessee's right to restitution under subsection (3) is subject to offset to the extent\nthe lessor establishes:\n(a) A right to recover damages under the provisions of this article other than\nsubsection (1); and\n(b) The amount or value of  any benefits received by the lessee directly or\nindirectly by reason of the lease contract.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33400","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"36256bac0c4ea74f7a8a29c4750a0c703469545874f2d221a84cf0ede95bc1d3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-503","next":"us-ky/krs-355.2a-505"},"notice":"GroundRules: Original legal text. Not legal advice."}