2006 Minnesota Code
Chapters 324 - 338 Trade Regulations, Consumer Protection
Chapter 336 Uniform Commercial Code
Section 336.2A-401 INSECURITY; ADEQUATE ASSURANCE OF PERFORMANCE.

336.2A-401 INSECURITY; ADEQUATE ASSURANCE OF PERFORMANCE.
(1) A lease contract imposes an obligation on each party that the other's expectation of
receiving due performance will not be impaired.
(2) If reasonable grounds for insecurity arise with respect to the performance of either party,
the insecure party may demand in writing adequate assurance of due performance. Until the
insecure party receives that assurance, if commercially reasonable the insecure party may suspend
any performance for which the insecure party has not already received the agreed return.
(3) A repudiation of the lease contract occurs if assurance of due performance adequate
under the circumstances of the particular case is not provided to the insecure party within a
reasonable time, not to exceed 30 days after receipt of a demand by the other party.
(4) Between merchants, the reasonableness of grounds for insecurity and the adequacy of
any assurance offered must be determined according to commercial standards.
(5) Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved
party's right to demand adequate assurance of future performance.
History: 1989 c 232 art 1 s 2A-401