                                 CODE OF VIRGINIA

INSTALLMENT LEASE CONTRACTS; REJECTION AND DEFAULT (§ 8.2A-510)

1. Under an installment lease contract a lessee may reject any delivery that is
nonconforming if the nonconformity substantially impairs the value of that
delivery and cannot be cured or the nonconformity is a defect in the required
documents; but if the nonconformity does not fall within subsection (2) of this
section and the lessor or the supplier gives adequate assurance of its cure, the
lessee must accept that delivery.

2. Whenever nonconformity or default with respect to one or more deliveries
substantially impairs the value of the installment lease contract as a whole
there is a default with respect to the whole. But, the aggrieved party
reinstates the installment lease contract as a whole if the aggrieved party
accepts a nonconforming delivery without seasonably notifying of cancellation or
brings an action with respect only to past deliveries or demands performance as
to future deliveries.

HISTORY: 1991, c. 536.