WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

(2)      A PROMISE THAT HAS BECOME IRREVOCABLE AND INDEPENDENT
UNDER SUBSECTION (1):

(A)     IS EFFECTIVE AND ENFORCEABLE BETWEEN THE PARTIES AND BY
OR AGAINST THIRD PARTIES INCLUDING ASSIGNEES OF THE PARTIES; AND

(B)      IS NOT SUBJECT TO CANCELLATION, TERMINATION, MODIFICATION,
REPUDIATION, EXCUSE, OR SUBSTITUTION WITHOUT THE CONSENT OF THE PARTY
TO WHOM THE PROMISE RUNS.

(3)      THIS SECTION DOES NOT AFFECT THE VALIDITY UNDER ANY OTHER LAW
OF A COVENANT IN ANY LEASE CONTRACT MAKING THE LESSEE'S PROMISES
IRREVOCABLE AND INDEPENDENT UPON THE LESSEE'S ACCEPTANCE OF THE
GOODS.

SUBTITLE 5. DEFAULT

PART I. IN GENERAL

2A-501. DEFAULT: PROCEDURE

(1)      WHETHER THE LESSOR OR THE LESSEE IS IN DEFAULT UNDER A LEASE
CONTRACT IS DETERMINED BY THE LEASE AGREEMENT AND THIS ARTICLE.

(2)      IF THE LESSOR OR THE LESSEE IS IN DEFAULT UNDER THE LEASE
CONTRACT, THE PARTY SEEKING ENFORCEMENT HAS RIGHTS AND REMEDIES AS
PROVIDED IN THIS ARTICLE AND, EXCEPT AS LIMITED BY THIS ARTICLE, AS
PROVIDED IN THE LEASE AGREEMENT.

(3)      IF THE LESSOR OR THE LESSEE IS IN DEFAULT UNDER THE LEASE
CONTRACT, THE PARTY SEEKING ENFORCEMENT MAY REDUCE THE PARTY'S CLAIM
TO JUDGMENT, OR OTHERWISE ENFORCE THE LEASE CONTRACT BY SELF-HELP OR
ANY AVAILABLE JUDICIAL PROCEDURE OR NONJUDICIAL PROCEDURE, INCLUDING
ADMINISTRATIVE PROCEEDING, ARBITRATION, OR THE LIKE, IN ACCORDANCE
WITH THIS ARTICLE.

(4)      EXCEPT AS OTHERWISE PROVIDED IN § 1-106(1) OF THIS ARTICLE OR THE
LEASE AGREEMENT, THE RIGHTS AND REMEDIES REFERRED TO IN SUBSECTIONS (2)
AND (3) ARE CUMULATIVE.

(5)      IF THE LEASE AGREEMENT COVERS BOTH REAL PROPERTY AND GOODS,
THE PARTY SEEKING ENFORCEMENT MAY PROCEED UNDER THIS PART AS TO THE
GOODS, OR UNDER OTHER APPLICABLE LAW AS TO BOTH THE REAL PROPERTY AND
THE GOODS IN ACCORDANCE WITH THAT PARTY'S RIGHTS AND REMEDIES IN
RESPECT OF THE REAL PROPERTY, IN WHICH CASE THIS PART DOES NOT APPLY.

2A-502. NOTICE AFTER DEFAULT

EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE OR THE LEASE
AGREEMENT, THE LESSOR OR LESSEE IN DEFAULT UNDER THE LEASE CONTRACT IS
NOT ENTITLED TO NOTICE OF DEFAULT OR NOTICE OF ENFORCEMENT FROM THE
OTHER PARTY TO THE LEASE AGREEMENT.

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