WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

(3)      IN COMPLYING WITH THIS SECTION OR § 2A-512, THE LESSEE IS HELD
ONLY TO GOOD FAITH. GOOD FAITH CONDUCT HEREUNDER IS NEITHER
ACCEPTANCE OR CONVERSION NOR THE BASIS OF AN ACTION FOR DAMAGES.

(4)      A PURCHASER WHO PURCHASES IN GOOD FAITH FROM A LESSEE
PURSUANT TO THIS SECTION OR § 2A-512 TAKES THE GOODS FREE OF ANY RIGHTS
OF THE LESSOR AND THE SUPPLIER EVEN THOUGH THE LESSEE FAILS TO COMPLY
WITH ONE OR MORE OF THE REQUIREMENTS OF THIS ARTICLE.

2A-512. LESSEE'S DUTIES AS TO RIGHTFULLY REJECTED GOODS

(1)      EXCEPT AS OTHERWISE PROVIDED WITH RESPECT TO GOODS THAT
THREATEN TO DECLINE IN VALUE SPEEDILY (§ 2A-511):

(A)     THE LESSEE, AFTER REJECTION OF GOODS IN THE LESSEE'S
POSSESSION, SHALL HOLD THEM WITH REASONABLE CARE AT THE LESSOR'S OR
SUPPLIER'S DISPOSITION FOR A REASONABLE TIME AFTER THE LESSEE'S
SEASONABLE NOTIFICATION OF REJECTION;

(B)      IF THE LESSOR OR THE SUPPLIER GIVES NO INSTRUCTIONS WITHIN
A REASONABLE TIME AFTER NOTIFICATION OF REJECTION, THE LESSEE MAY STORE
THE REJECTED GOODS FOR THE LESSOR'S OR THE SUPPLIER'S ACCOUNT OR SHIP
THEM TO THE LESSOR OR THE SUPPLIER OR DISPOSE OF THEM FOR THE LESSOR'S
OR THE SUPPLIER'S ACCOUNT WITH REIMBURSEMENT IN THE MANNER PROVIDED
IN § 2A-511; BUT

(C)     THE LESSEE HAS NO FURTHER OBLIGATIONS WITH REGARD TO
GOODS RIGHTFULLY REJECTED.

(2)      ACTION BY THE LESSEE PURSUANT TO SUBSECTION (1) IS NOT
ACCEPTANCE OR CONVERSION.

2A-513. CURE BY LESSOR OF IMPROPER TENDER OR DELIVERY; REPLACEMENT

(1)      IF ANY TENDER OR DELIVERY BY THE LESSOR OR THE SUPPLIER IS
REJECTED BECAUSE IT IS NONCONFORMING AND THE TIME FOR PERFORMANCE
HAS NOT YET EXPIRED, THE LESSOR OR THE SUPPLIER MAY SEASONABLY NOTIFY
THE LESSEE OF THE LESSOR'S OR THE SUPPLIER'S INTENTION TO CURE AND MAY
THEN MAKE A CONFORMING DELIVERY WITH THE TIME PROVIDED IN THE LEASE
CONTRACT.

(2)      IF THE LESSEE REJECTS A NONCONFORMING TENDER THAT THE LESSOR
OR THE SUPPLIER HAD REASONABLE GROUNDS TO BELIEVE WOULD BE
ACCEPTABLE WITH OR WITHOUT MONEY ALLOWANCE, THE LESSOR OR THE
SUPPLIER MAY HAVE A FURTHER REASONABLE TIME TO SUBSTITUTE A
CONFORMING TENDER IF HE (OR SHE) SEASONABLY NOTIFIES THE LESSEE.

2A-514. WAIVER OF LESSEE'S OBJECTIONS

- 3455 -