WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

(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
DISPOSITION IS BY LEASE AGREEMENT SUBSTANTIALLY SIMILAR TO THE ORIGINAL
LEASE AGREEMENT AND THE NEW LEASE AGREEMENT IS MADE IN GOOD FAITH
AND IN A COMMERCIALLY REASONABLE MANNER, THE LESSOR MAY RECOVER
FROM THE LESSEE AS DAMAGES (I) ACCRUED AND UNPAID RENT AS OF THE DATE
OF THE COMMENCEMENT OF THE TERM OF THE NEW LEASE AGREEMENT, (II) THE
PRESENT VALUE, AS OF THE SAME DATE, OF THE TOTAL RENT FOR THE THEN
REMAINING LEASE TERM OF THE ORIGINAL LEASE AGREEMENT MINUS THE
PRESENT VALUE, AS OF THE SAME DATE, OF THE RENT UNDER THE NEW LEASE
AGREEMENT APPLICABLE TO THAT PERIOD OF THE NEW LEASE TERM WHICH IS
COMPARABLE TO THE THEN REMAINING TERM OF THE ORIGINAL LEASE
AGREEMENT, AND (III) ANY INCIDENTAL DAMAGES ALLOWED UNDER § 2A-530, LESS
EXPENSES SAVED IN CONSEQUENCE OF THE LESSEE'S DEFAULT.

(3)      IF THE LESSOR'S DISPOSITION IS BY LEASE AGREEMENT THAT FOR ANY
REASON DOES NOT QUALIFY FOR TREATMENT UNDER SUBSECTION (2) OR IS BY
SALE OR OTHERWISE, THE LESSOR MAY RECOVER FROM THE LESSEE UNDER
SECTION 2A-528 AS IF THE LESSOR HAD ELECTED NOT TO DISPOSE OF THE GOODS
AND § 2A-528 GOVERNS.

(4)      A SUBSEQUENT BUYER OR LESSEE WHO BUYS OR LEASES FROM THE
LESSOR IN GOOD FAITH FOR VALUE AS A RESULT OF A DISPOSITION UNDER THIS
SECTION TAKES THE GOODS FREE OF THE ORIGINAL LEASE CONTRACT AND ANY
RIGHTS OF THE ORIGINAL LESSEE EVEN THOUGH THE LESSOR FAILS TO COMPLY
WITH ONE OR MORE OF THE REQUIREMENTS OF THIS ARTICLE.

(5)      THE LESSOR IS NOT ACCOUNTABLE TO THE LESSEE FOR ANY PROFIT
MADE ON ANY DISPOSITION.

2A-528. LESSOR'S DAMAGES FOR NONACCEPTANCE, FAILURE TO PAY, REPUDIATION,
OR OTHER DEFAULT

(1) 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 A LESSOR
ELECTS TO RETAIN THE GOODS OR A LESSOR ELECTS TO DISPOSE OF THE GOODS
AND THE DISPOSITION IS BY LEASE AGREEMENT THAT FOR ANY REASON DOES NOT
QUALIFY FOR TREATMENT UNDER § 2A-527(2), OR IS BY SALE OR OTHERWISE, THE
LESSOR MAY RECOVER FROM THE LESSEE AS DAMAGES FOR A DEFAULT OF THE
TYPE DESCRIBED IN § 2A-523(1) OR 2A-523(3)(A), OR, IF AGREED, FOR OTHER
DEFAULT OF THE LESSEE (I) ACCRUED AND UNPAID RENT AS OF THE DATE OF

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