                                 CODE OF VIRGINIA

PROCEDURE ON EXCUSED PERFORMANCE (§ 8.2A-406)

1. If the lessee receives notification of a material or indefinite delay or an
allocation justified under § 8.2A-405, the lessee may by written notification
to the lessor as to any goods involved, and with respect to all of the goods if
under an installment lease contract the value of the whole lease contract is
substantially impaired (§ 8.2A-510):

   a. Terminate the lease contract (pursuant to subsection (2) of &#xA7;
   8.2A-505; or

   b. Except in a finance lease that is not a consumer lease, modify the lease
   contract by accepting the available quota in substitution, with due allowance
   from the rent payable for the balance of the lease term for the deficiency but
   without further right against the lessor.

2. If, after receipt of a notification from the lessor under &#xA7; 8.2A-405,
the lessee fails so to modify the lease agreement within a reasonable time not
exceeding thirty days, the lease contract lapses with respect to any deliveries
affected.

HISTORY: 1991, c. 536.