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2018 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 2A - Leases
Section 55-2A-510 - Installment lease contracts; rejection and default.

Universal Citation: NM Stat § 55-2A-510 (2018)
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55-2A-510. Installment lease contracts; rejection and default.

(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) 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: 1978 Comp., § 55-2A-510, enacted by Laws 1992, ch. 114, § 65.

ANNOTATIONS

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Uniform Statutory Source: — Section 2-612 [55-2-612 NMSA 1978].

Changes: — Revised to reflect leasing practices and terminology.

"Action". Section 1-201(1) [55-1-201 NMSA 1978].

"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].

"Cancellation". Section 2A-103(1)(b) [55-2A-103 NMSA 1978].

"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].

"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].

"Installment lease contract". Section 2A-103(1)(i) [55-2A-103 NMSA 1978].

"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].

"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].

"Notifies". Section 1-201(26) [55-1-201 NMSA 1978].

"Seasonably"'. Section 1-204(3) [55-1-204 NMSA 1978].

"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].

"Value". Section 1-201(44) [55-1-201 NMSA 1978].

Effective dates. — Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 65 effective July 1, 1992.

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