PARRIS N. GLENDENING, Governor

Ch. 3

Occurred: Ch. 535, Acts of 1994. Correction by the Michie Company in the
1994 Cumulative Supplement of the Commercial Law Article is validated by
this Act.

2A-529.

(1) After default by the lessee under the lease contract of the type described in §
2A-523(1) or [2A-523(3)(a)] § 2A-523(3)(A) or, if agreed, after other default by the
lessee, if the lessor complies with [subdivision] SUBSECTION (2), the lessor may recover
from the lessee as damages:

(a)     For goods accepted by the lessee and not repossessed by or tendered to
the lessor, and for conforming goods lost or damaged after risk of loss passes to the lessee
(§ 2A-219), (i) accrued and unpaid rent as of the date of entry of judgment in favor of the
lessor, (ii) the present value as of the same date of the rent for the then remaining lease
term of the lease agreement, and (iii) any incidental damages allowed under § 2A-530,
less expenses saved in consequence of the lessee's default; and

(b)     For goods identified to the lease contract where the lessor has never
delivered the goods or has taken possession of them or the lessee has effectively tendered
them back to the lessor if the lessor is unable after reasonable effort to dispose of them
at a reasonable price or the circumstances reasonably indicate that such an effort will be
unavailing, (i) accrued and unpaid rent as of the date of entry of judgment in favor of the
lessor, (ii) the present value as of the same date of the rent for the then remaining lease
term of the lease agreement, and (iii) any incidental damages allowed under § 2A-530,
less expenses saved in consequence of the lessee's default.

(3) The lessor may dispose of the goods at any time before collection of the
judgment for damages obtained pursuant to subsection (1). If the disposition is before the
end of the remaining lease term of the lease agreement, the lessor's recovery against the
lessee for damages is governed by [§ 2A-527 and § 2A-528] §§ 2A-527 AND 2A-528, and
the lessor will cause an appropriate credit to be provided against a judgment for damages
to the extent that the amount of the judgment exceeds the recovery available pursuant to
§ 2A-527 or § 2A-528.

(5) After a lessee has wrongfully rejected or revoked acceptance of goods, has
failed to pay rent then due, or has repudiated (§ 2A-402), a lessor who is held not entitled
to rent under this section must nevertheless be awarded damages for nonacceptance
under § 2A-527 or [2A-528] § 2A-528.

DRAFTER'S NOTE:

Error: Stylistic errors in the introductory language of § 2A-529(1) and in (3)
and (5) of the Commercial Law Article.

Occurred: Ch. 535, Acts of 1994.

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