                                 CODE OF VIRGINIA

LESSOR&#8217;S REMEDIES (§ 8.2A-523)

1. If a lessee wrongfully rejects or revokes acceptance of goods or fails to
make a payment when due or repudiates with respect to a part or the whole, then,
with respect 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), the lessee is in default under the lease
contract and the lessor may:

   a. Cancel the lease contract (subsection (1) of &#xA7; 8.2A-505);

   b. Proceed respecting goods not identified to the lease contract (&#xA7;
   8.2A-524);

   c. Withhold delivery of the goods and take possession of goods previously
   delivered (&#xA7; 8.2A-525);

   d. Stop delivery of the goods by any bailee (&#xA7; 8.2A-526);

   e. Dispose of the goods and recover damages (&#xA7; 8.2A-527), or retain the
   goods and recover damages (&#xA7; 8.2A-528), or in a proper case recover rent
   (&#xA7; 8.2A-529); or

   f. Exercise any other rights or pursue any other remedies provided in the
   lease contract.

2. If a lessor does not fully exercise a right or obtain a remedy to which the
lessor is entitled under subsection (1) of this section, the lessor may recover
the loss resulting in the ordinary course of events from the lessee&#8217;s
default as determined in any reasonable manner, together with incidental
damages, less expenses saved in consequence of the lessee&#8217;s default.

3. If a lessee is otherwise in default under a lease contract, the lessor may
exercise the rights and pursue the remedies provided in the lease contract which
may include a right to cancel the lease. In addition, unless otherwise provided
in the lease contract if:

   a. The default substantially impairs the value of the lease contract to the
   lessor, the lessor may exercise the rights and pursue the remedies provided in
   subsection (1) or (2) of this section; or

   b. The default does not substantially impair the value of the lease contract
   to the lessor, the lessor may recover as provided in subsection (2) of this
   section.

HISTORY: 1991, c. 536.