Iowa Code 554.13524 – Lessor’s right to identify goods to lease contract
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Terms Used In Iowa Code 554.13524
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
554.13524 Lessor’s right to identify goods to lease contract.
1. After default by the lessee under the lease contract of the type described in section
554.13523, subsection 1, or § 554.13523, subsection 3, paragraph “”a”” or, if agreed, after other default by the lessee, the lessor may:
a. identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor’s or the supplier’s possession or control; and
b. dispose of goods (section 554.13527, subsection 1) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
2. If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease, sell, or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
94 Acts, ch 1052, §76
Referred to in §554.13402, 554.13523
1. After default by the lessee under the lease contract of the type described in section
554.13523, subsection 1, or § 554.13523, subsection 3, paragraph “”a”” or, if agreed, after other default by the lessee, the lessor may:
a. identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor’s or the supplier’s possession or control; and
b. dispose of goods (section 554.13527, subsection 1) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
2. If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease, sell, or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
94 Acts, ch 1052, §76
Referred to in §554.13402, 554.13523