WILLIAM DONALD SCHAEFER, Governor                           Ch. 535

TO BE DESIGNATED BY THE LESSOR WHICH IS REASONABLY CONVENIENT TO BOTH
PARTIES. WITHOUT REMOVAL, THE LESSOR MAY RENDER UNUSABLE ANY GOODS
EMPLOYED IN TRADE OR BUSINESS, AND MAY DISPOSE OF GOODS ON THE LESSEE'S
PREMISES (§ 2A-527).

(3) THE LESSOR MAY PROCEED UNDER SUBSECTION (2) WITHOUT JUDICIAL
PROCESS IF IT CAN BE DONE WITHOUT BREACH OF THE PEACE OR THE LESSOR MAY
PROCEED BY ACTION.

2A-526. LESSOR'S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE

(1)      A LESSOR MAY STOP DELIVERY OF GOODS IN THE POSSESSION OF A
CARRIER OR OTHER BAILEE IF THE LESSOR DISCOVERS THE LESSEE TO BE
INSOLVENT AND MAY STOP DELIVERY OF CARLOAD, TRUCKLOAD, PLANELOAD, OR
LARGER SHIPMENTS OF EXPRESS OR FREIGHT IF THE LESSEE REPUDIATES OR FAILS
TO MAKE A PAYMENT DUE BEFORE DELIVERY, WHETHER FOR RENT, SECURITY, OR
OTHERWISE UNDER THE LEASE CONTRACT, OR FOR ANY OTHER REASON THE
LESSOR HAS A RIGHT TO WITHHOLD OR TAKE POSSESSION OF THE GOODS.

(2)      IN PURSUING ITS REMEDIES UNDER SUBSECTION (1), THE LESSOR MAY
STOP DELIVERY UNTIL

(A)     RECEIPT OF THE GOODS BY THE LESSEE;

(B)      ACKNOWLEDGMENT TO THE LESSEE BY ANY BAILEE OF THE GOODS,
EXCEPT A CARRIER, THAT THE BAILEE HOLDS THE GOODS FOR THE LESSEE; OR

(C)      SUCH AN ACKNOWLEDGMENT TO THE LESSEE BY A CARRIER VIA
RESHIPMENT OR AS WAREHOUSEMAN.

(3)      (A) TO STOP DELIVERY, A LESSOR SHALL SO NOTIFY AS TO ENABLE THE
BAILEE BY REASONABLE DILIGENCE TO PREVENT DELIVERY OF THE GOODS.

(B)      AFTER NOTIFICATION, THE BAILEE SHALL HOLD AND DELIVER THE
GOODS ACCORDING TO THE DIRECTIONS OF THE LESSOR, BUT THE LESSOR IS
LIABLE TO THE BAILEE FOR ANY ENSUING CHARGES OR DAMAGES.

(C)     A CARRIER WHO HAS ISSUED A NONNEGOTIABLE BILL OF LADING IS
NOT OBLIGED TO OBEY A NOTIFICATION TO STOP RECEIVED FROM A PERSON
OTHER THAN THE CONSIGNOR.

2A-527. LESSOR'S RIGHTS TO DISPOSE OF GOODS

(1)      AFTER A DEFAULT BY A LESSEE UNDER THE LEASE CONTRACT OF THE
TYPE DESCRIBED IN § 2A-523(1) OR 2A-523(3)(A) OR AFTER THE LESSOR REFUSES TO
DELIVER OR TAKES POSSESSION OF GOODS (§ 2A-525 OR § 2A-526), OR, IF AGREED,
AFTER OTHER DEFAULT BY A LESSEE, THE LESSOR MAY DISPOSE OF THE GOODS
CONCERNED OR THE UNDELIVERED BALANCE THEREOF IN GOOD FAITH AND
WITHOUT UNREASONABLE DELAY BY LEASE, SALE, OR OTHERWISE.

(2)      EXCEPT AS OTHERWISE PROVIDED WITH RESPECT TO DAMAGES
LIQUIDATED IN THE LEASE AGREEMENT (§ 2A-504) OR OTHERWISE DETERMINED
PURSUANT TO AGREEMENT OF THE PARTIES (§ 1-102(3) AND § 2A-503), IF THE

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