(810 ILCS 5/Art. 2A Pt. 5 Sub. C heading) C.
Default by Lessee
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(810 ILCS 5/2A-523) (from Ch. 26, par. 2A-523)
Sec. 2A-523.
Lessor's remedies.
(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 (Section 2A-510), the lessee is in default
under the lease contract and the lessor may:
(a) cancel the lease contract (Section 2A-505(1));
(b) proceed respecting goods not identified to the | ||
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(c) withhold delivery of the goods and take | ||
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(d) stop delivery of the goods by any bailee (Section | ||
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(e) dispose of the goods and recover damages (Section | ||
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(f) exercise any other rights or pursue any other | ||
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(2) If a lessor does not fully exercise a right or obtain a remedy to
which the lessor is entitled under subsection (1), the lessor may recover
the loss resulting in the ordinary course of events from the lessee's
default as determined in any reasonable manner, together with incidental
damages, less expenses saved in consequence of the lessee'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:
(a) if the default substantially impairs the value of | ||
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(b) if the default does not substantially impair the | ||
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(Source: P.A. 87-493.)
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(810 ILCS 5/2A-524) (from Ch. 26, par. 2A-524)
Sec. 2A-524.
Lessor's right to identify goods to lease
contract.
(1) A lessor aggrieved under Section 2A-523(1) may:
(a) identify to the lease contract conforming goods | ||
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(b) dispose of goods (Section 2A-527(1)) that | ||
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(2) If the goods are unfinished, in the exercise of
reasonable commercial judgment for the purposes of avoiding loss
and of effective realization, an aggrieved lessor or the supplier
may either complete manufacture and wholly identify the goods to
the lease contract or cease manufacture and lease, sell, or
otherwise dispose of the goods for scrap or salvage value or
proceed in any other reasonable manner.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-525) (from Ch. 26, par. 2A-525)
Sec. 2A-525.
Lessor's right to possession of goods.
(1) If a lessor discovers the lessee to be insolvent, the
lessor may refuse to deliver the goods.
(2) After a default by the lessee under the lease contract of the type
described in Section 2A-523(1) or 2A-523(3)(a) or, if agreed, after other
default by the lessee, the lessor has the right to take possession of the
goods. If the lease contract so provides, the lessor may require the
lessee to assemble the goods and make them available to the lessor at a
place to be designated by the lessor which is reasonably
convenient to both parties. Without removal, the lessor may
render unusable any goods employed in trade or business, and
may dispose of goods on the lessee's premises (Section 2A-527).
(3) The lessor may proceed under subsection (2) without
judicial process if it can be done without breach of the peace
or the lessor may proceed by action.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-526) (from Ch. 26, par. 2A-526)
Sec. 2A-526. Lessor's stoppage of delivery in transit
or otherwise.
(1) A lessor may stop delivery of goods in the possession
of a carrier or other bailee if the lessor discovers the lessee to
be insolvent and may stop delivery of carload, truckload,
planeload, or larger shipments of express or freight if the lessee
repudiates or fails to make a payment due before delivery,
whether for rent, security or otherwise under the lease
contract, or for any other reason the lessor has a right to
withhold or take possession of the goods.
(2) In pursuing its remedies under subsection (1), the
lessor may stop delivery until:
(a) receipt of the goods by the lessee;
(b) acknowledgment to the lessee by any bailee of the | ||
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(c) such an acknowledgment to the lessee by a carrier | ||
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(3)(a) To stop delivery, a lessor shall so notify as to
enable the bailee by reasonable diligence to prevent delivery of
the goods.
(b) After notification, the bailee shall hold and deliver
the goods according to the directions of the lessor, but the
lessor is liable to the bailee for any ensuing charges or
damages.
(c) A carrier who has issued a nonnegotiable bill of
lading is not obliged to obey a notification to stop received from
a person other than the consignor.
(Source: P.A. 95-895, eff. 1-1-09.)
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(810 ILCS 5/2A-527) (from Ch. 26, par. 2A-527)
Sec. 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.)
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(810 ILCS 5/2A-528) (from Ch. 26, par. 2A-528)
Sec. 2A-528. Lessor's damages for nonacceptance, failure to pay,
repudiation, or other default.
(1) 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 a lessor elects
to retain the goods or a lessor elects to dispose of the goods
and the disposition is by lease agreement that for any reason does
not qualify for treatment under Section 2A-527(2), or is by sale
or otherwise, the lessor may recover from the lessee as damages
for a default of the type described in Section 2A-523(1) or 2A-523(3)(a)
or, if agreed, for other default of the lessee, (i) accrued and
unpaid rent as of the date of default if the lessee has never taken
possession of the goods, or, if the lessee has taken possession of the
goods, as of the date the lessor repossesses the goods or an earlier date
on which the lessee makes a tender of the goods to the lessor, (ii) the
present value as of the date determined under clause (i) 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 market rent at the place where the
goods are located computed for the same lease term, and (iii) any
incidental damages allowed under Section 2A-530, less expenses saved in
consequence of the lessee's default.
(2) If the measure of damages provided in subsection (1) is inadequate
to put a lessor in as good a position as performance would have, the
measure of damages is the present value of the profit, including reasonable
overhead, the lessor would have made from full performance by the lessee,
together with any incidental damages allowed under Section 2A-530, due
allowance for costs reasonably incurred and due credit for payments or
proceeds of disposition.
(Source: P.A. 95-895, eff. 1-1-09.)
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(810 ILCS 5/2A-529) (from Ch. 26, par. 2A-529)
Sec. 2A-529.
Lessor's action for the rent.
(1) After default by the lessee under the lease contract
of the type described in Section 2A-523(1) or 2A-523(3)(a) or, if
agreed, after other default by the lessee, if the lessor complies with
subsection (2), the lessor may recover from the lessee as damages:
(a) for goods accepted by the lessee and not | ||
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(b) for goods identified to the lease contract if the | ||
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(2) Except as provided in subsection (3), the lessor shall
hold for the lessee for the remaining lease term of the lease
agreement any goods that have been identified to the lease
contract and are in the lessor's control.
(3) The lessor may dispose of the goods at any time
before collection of the judgment for damages obtained pursuant
to subsection (1). If the disposition is before the end of the remaining
lease term of the lease agreement, the lessor's recovery against the lessee
for damages is governed by Section 2A-527 or 2A-528, and the lessor will
cause an appropriate credit to be provided against a judgment for damages
to the extent that the amount of the judgment exceeds the recovery
available pursuant to Section 2A-527 or 2A-528.
(4) Payment of the judgment for damages obtained
pursuant to subsection (1) entitles the lessee to the use and
possession of the goods not then disposed of for the remaining
lease term of and in accordance with the lease agreement.
(5) After a lessee has wrongfully rejected or revoked
acceptance of goods, has failed to pay rent then due, or has
repudiated (Section 2A-402), a lessor who is held not entitled to
rent under this Section must nevertheless be awarded damages
for nonacceptance under Sections 2A-527 and 2A-528.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-530) (from Ch. 26, par. 2A-530)
Sec. 2A-530.
Lessor's incidental damages.
Incidental damages to an aggrieved lessor include any
commercially reasonable charges, expenses, or commissions
incurred in stopping delivery, in the transportation, care and
custody of goods after the lessee's default, in connection with
return or disposition of the goods, or otherwise resulting from
the default.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-531) (from Ch. 26, par. 2A-531)
Sec. 2A-531.
Standing to sue third parties for injury
to goods.
(1) If a third party so deals with goods that have been
identified to a lease contract as to cause actionable injury to a
party to the lease contract (a) the lessor has a right of action
against the third party, and (b) the lessee also has a right of
action against the third party if the lessee:
(i) has a security interest in the goods;
(ii) has an insurable interest in the goods; or
(iii) bears the risk of loss under the lease contract | ||
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(2) If at the time of the injury the party plaintiff did not
bear the risk of loss as against the other party to the lease
contract and there is no arrangement between them for
disposition of the recovery, his or her suit or settlement,
subject to his or her own interest, is as a fiduciary for the
other party to the lease contract.
(3) Either party with the consent of the other may sue
for the benefit of whom it may concern.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-532) (from Ch. 26, par. 2A-532)
Sec. 2A-532.
Lessor's rights to residual interest.
In addition to any
other recovery permitted by this Article or other law, the lessor may
recover from the lessee an amount that will fully compensate the lessor for
any loss of or damage to the lessor's residual interest in the goods caused
by the default of the lessee.
(Source: P.A. 87-493.)
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