(1) After a default by a lessee under the lease contract of the type described in § 2A-523(1) or § 2A-523(3)(a) or after the lessor refuses to deliver or takes possession of goods (§ 2A-525 or § 2A-526), or, if agreed, after other default by a lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof in good faith and without unreasonable delay by lease, sale, or otherwise. (2) Except as otherwise provided with respect to damages liquidated in the lease agreement (§ 2A-504) or otherwise determined pursuant to agreement of the parties (§§ 1-302 and 2A-503), if the disposition 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 lessor may recover from the lessee as damages (i) accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement, (ii) the present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus the present value, as of the same date, 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, and (iii) any incidental damages allowed under § 2A-530, less expenses saved in consequence of the lessee's default. (3) If the lessor's disposition is by lease agreement that for any reason does not qualify for treatment under subsection (2) or is by sale or otherwise, the lessor may recover from the lessee under § 2A-528 as if the lessor had elected not to dispose of the goods and § 2A-528 governs. (4) A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this title. (5) The lessor is not accountable to the lessee for any profit made on any disposition.
‹ Prev All Maryland sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.