{"data":{"id":"us-ky/krs-355.2a-527","jurisdiction":"us-ky","citation":"KRS 355.2A-527","heading":"Lessor's rights to dispose of goods.","body":"(1) After a default by a lessee under the lease contract of the type described in KRS\n355.2A-523(1) or 355.2A -523(3)(a) or after the lessor refuses to deliver or takes\npossession of goods (KRS 355.2A -525 or 355.2A -526), or, if agreed, after other\ndefault by a lessee, the lessor may dispose of the goods concerned or the\nundelivered balance thereof by lease, sale, or otherwise.\n(2) Except as otherwise provided with respect to damages liquidated in the lease\nagreement (KRS 355.2A-504) or otherwise determined pursuant to agreement of the\nparties (KRS 355.1 -302 and 355.2A -503), if the disposition is by lease agreement\nsubstantially similar to the original lease agreement and the new lease agreement is\nmade in good faith and in a commercially reasonable manner, the le ssor may\nrecover from the lessee as damages:\n(a) Accrued and unpaid rent as of the date of the commencement of the term of\nthe new lease agreement;\n(b) The present value, as of the same date of the total rent for the then remaining\nlease term of the origin al lease agreement minus the present value, as of the\nsame date, of the rent under the new lease agreement applicable to that period\nof the new lease term which is comparable to the then remaining term of the\noriginal lease agreement; and\n(c) Any incidental damages allowed under KRS 355.2A-530, less expenses saved\nin consequence of the lessee's default.\n(3) If the lessor's disposition is by lease agreement that for any reason does not qualify\nfor treatment under subsection (2) of this section, or is by sale  or otherwise, the\nlessor may recover from the lessee as if the lessor had elected not to dispose of the\ngoods and KRS 355.2A-528 governs.\n(4) A subsequent buyer or lessee who buys or leases from the lessor in good faith for\nvalue as a result of a disposit ion under this section takes the goods free of the\noriginal lease contract and any rights of the original lessee even though the lessor\nfails to comply with one (1) or more of the requirements of this article.\n(5) The lessor is not accountable to the lessee for any profit made on any disposition. A\nlessee who has rightfully rejected or justifiably revoked acceptance shall account to\nthe lessor for any excess over the amount of the lessee's security interest (subsection\n(5) of KRS 355.2A-508).","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33423","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"ea0b6939cc5705dac1dfa44a074b875ca485880d0bef9bd95dc7e52ee9d414bd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-526","next":"us-ky/krs-355.2a-528"},"notice":"GroundRules: Original legal text. Not legal advice."}