                                 CODE OF VIRGINIA

COVER; SUBSTITUTE GOODS (§ 8.2A-518)

1. After default by a lessor under the lease contract of the type described in
subsection (1) of &#xA7; 8.2A-508, or, if agreed, after other default by the
lessor, the lessee may cover by making any purchase or lease of or contract to
purchase or lease goods in substitution for those due from the lessor.

2. Except as otherwise provided with respect to damages liquidated in the lease
agreement (&#xA7; 8.2A-504) or otherwise determined pursuant to agreement of the
parties (&#xA7;&#xA7; 8.1A-302 and 8.2A-503), if a lessee&#8217;s cover 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 lessee may recover from the lessor as damages (i) the present value,
as of the date of the commencement of the term of the new lease agreement, 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 minus the present value as of the same date of the total rent for the
then remaining lease term of the original lease agreement, and (ii) any
incidental or consequential damages less expenses saved in consequence of the
lessor&#8217;s default.

3. If a lessee&#8217;s cover is by lease agreement that for any reason does not
qualify for treatment under subsection (2) of this section, or is by purchase or
otherwise, the lessee may recover from the lessor as if the lessee had elected
not to cover and &#xA7; 8.2A-519 governs.

HISTORY: 1991, c. 536; 2003, c. 353.