(810 ILCS 5/2A-527)
(from Ch. 26, par. 2A-527)
Lessor's rights to dispose of goods.
(1) After a default by a lessee under the lease contract
of the type described in Section 2A-523(1) or 2A-523(3)(a) or after the
lessor refuses to deliver or takes possession of goods (Section 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 by lease,
sale, or otherwise.
(2) Except as otherwise provided with respect to damages liquidated in
the lease agreement (Section 2A-504) or otherwise determined pursuant to
agreement of the parties (Sections 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 Section 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 as if the lessor had elected not to dispose of the goods
and Section 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 Article.
(5) The lessor is not accountable to the lessee for any
profit made on any disposition. A lessee who has rightfully
rejected or justifiably revoked acceptance shall account to the
lessor for any excess over the amount of the lessee's security
interest (Section 2A-508(5)).
(Source: P.A. 95-895, eff. 1-1-09.)