WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

(B) IN THE ABSENCE OF THOSE TERMS, 20 PERCENT OF THE THEN
PRESENT VALUE OF THE TOTAL RENT THE LESSEE WAS OBLIGATED TO PAY FOR
THE BALANCE OF THE LEASE TERM, OR, IN THE CASE OF A CONSUMER LEASE, THE
LESSER OF SUCH AMOUNT OR $500.

(4) A LESSEE'S RIGHT TO RESTITUTION UNDER SUBSECTION (3) IS SUBJECT
TO OFFSET TO THE EXTENT THE LESSOR ESTABLISHES:

(A)     A RIGHT TO RECOVER DAMAGES UNDER THE PROVISIONS OF THIS
ARTICLE OTHER THAN SUBSECTION (1); AND

(B)     THE AMOUNT OR VALUE OF ANY BENEFITS RECEIVED BY THE
LESSEE DIRECTLY OR INDIRECTLY BY REASON OF THE LEASE CONTRACT.

2A-505. CANCELLATION AND TERMINATION AND EFFECT OF CANCELLATION,
TERMINATION, RESCISSION, OR FRAUD ON RIGHTS AND REMEDIES

(1)      ON CANCELLATION OF THE LEASE CONTRACT, ALL OBLIGATIONS THAT
ARE STILL EXECUTORY ON BOTH SIDES ARE DISCHARGED, BUT ANY RIGHT BASED
ON PRIOR DEFAULT OR PERFORMANCE SURVIVES, AND THE CANCELLING PARTY
ALSO RETAINS ANY REMEDY FOR DEFAULT OF THE WHOLE LEASE CONTRACT OR
ANY UNPERFORMED BALANCE.

(2)      ON TERMINATION OF THE LEASE CONTRACT, ALL OBLIGATIONS THAT
ARE STILL EXECUTORY ON BOTH SIDES ARE DISCHARGED BUT ANY RIGHT BASED
ON PRIOR DEFAULT OR PERFORMANCE SURVIVES.

(3)      UNLESS THE CONTRARY INTENTION CLEARLY APPEARS, EXPRESSIONS OF
"CANCELLATION," "RESCISSION," OR THE LIKE OF THE LEASE CONTRACT MAY NOT
BE CONSTRUED AS A RENUNCIATION OR DISCHARGE OF ANY CLAIM IN DAMAGES
FOR AN ANTECEDENT DEFAULT.

(4)      RIGHTS AND REMEDIES FOR MATERIAL MISREPRESENTATION OR FRAUD
INCLUDE ALL RIGHTS AND REMEDIES AVAILABLE UNDER THIS ARTICLE FOR
DEFAULT.

(5)      NEITHER RESCISSION NOR A CLAIM FOR RESCISSION OF THE LEASE
CONTRACT NOR REJECTION OR RETURN OF THE GOODS MAY BAR OR BE DEEMED
INCONSISTENT WITH A CLAIM FOR DAMAGES OR OTHER RIGHT OR REMEDY.

2A-506. STATUTE OF LIMITATIONS

(1)      AN ACTION FOR DEFAULT UNDER A LEASE CONTRACT, INCLUDING
BREACH OF WARRANTY OR INDEMNITY, MUST BE COMMENCED WITHIN 4 YEARS
AFTER THE CAUSE OF ACTION ACCRUED.

(2)      A CAUSE OF ACTION FOR DEFAULT ACCRUES WHEN THE ACT OR
OMISSION ON WHICH THE DEFAULT OR BREACH OF WARRANTY IS BASED IS OR
SHOULD HAVE BEEN DISCOVERED BY THE AGGRIEVED PARTY, OR WHEN THE

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