Title 45 — Trade and Commerce
49 chapters · 1,288 sections in this title.
AS 45.12.218 Insurance and proceeds.
1.0K chars
(a) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and the lessee has an option to reject them. (b) If a lessee has an insurable interest only by reason of the lessor's identificat…
AS 45.12.219 Risk of loss.
1.4K chars
(a) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. In the case of a finance lease, risk of loss passes to the lessee. (b) Subject to the provisions of AS 45.12.220 on the effect of default on risk of loss, if risk of…
AS 45.12.220 Effect of default on risk of loss.
1.0K chars
(a) Where risk of loss is to pass to the lessee and the time of passage is not stated (1) if a tender or delivery of goods so fails to conform to the lease contract as to give a right of rejection, the risk of their loss remains with the lessor, or, in the case of a finance lease…
AS 45.12.221 Casualty to identified goods.
0.9K chars
Article 3. Effect of Lease Contract. If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the lessor, or the supplier before delivery, or the goods suffer casualty before risk of loss passes to t…
AS 45.12.301 Enforceability of lease contract.
0.2K chars
Except as otherwise provided in this chapter, a lease contract is effective and enforceable according to its terms between the parties, against purchasers of the goods, and against creditors of the parties.
AS 45.12.302 Title to and possession of goods.
0.3K chars
Except as otherwise provided in this chapter, each provision of this chapter applies whether the lessor or a third party has title to the goods, and whether the lessor, the lessee, or a third party has possession of the goods, notwithstanding a statute or rule of law that possess…
AS 45.12.303 Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights.
3.6K chars
(a) Except as provided in (d) of this section and AS 45.29.407, a provision in a lease agreement that does either of the following gives rise to the rights and remedies provided in (e) of this section, but a transfer that is prohibited or is an event of default under the lease ag…
AS 45.12.304 Subsequent lease of goods by lessor.
1.8K chars
(a) Subject to AS 45.12.303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in (b) o…
AS 45.12.305 Sale or sublease of goods by lessee.
1.6K chars
(a) Subject to the provisions of AS 45.12.303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee had or had power to transfer, and except as provid…
AS 45.12.306 Priority of certain liens arising by operation of law.
0.5K chars
If a person in the ordinary course of the person's business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those goods in the possession of that person given by statute or rule of law for those materials or services takes priority o…
AS 45.12.307 Priority of liens arising by attachment or levy on, security interests in, and other claims to goods.
0.6K chars
(a) Except as otherwise provided in AS 45.12.306, a creditor of a lessee takes subject to the lease contract. (b) Except as otherwise provided in (c) of this section and in AS 45.12.306 and 45.12.308, a creditor of a lessor takes subject to the lease contract unless the creditor …
AS 45.12.308 Special rights of creditors.
1.2K chars
(a) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudulent, but retention of possession in good faith and current course of trade by the lessor f…
AS 45.12.309 Lessor's and lessee's rights when goods become fixtures.
5.7K chars
(a) Under this chapter a lease may be of goods that are fixtures or may continue in goods that become fixtures, but a lease does not exist under this chapter of ordinary building materials incorporated into an improvement on land. (b) This chapter does not prevent creation of a l…
AS 45.12.310 Lessor's and lessee's rights when goods become accessions.
2.4K chars
(a) “Accessions” means goods when they are installed in or affixed to other goods. (b) The interest of a lessor or a lessee under a lease contract entered into before the goods became accessions is superior to all interests in the whole except as stated in (d) of this section. (c…
AS 45.12.311 Priority subject to subordination.
0.1K chars
Article 4. Performance of Lease Contract. Nothing in this chapter prevents subordination by agreement by a person entitled to priority.
AS 45.12.401 Insecurity: adequate assurance of performance.
1.1K chars
(a) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. (b) If reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequa…
AS 45.12.402 Anticipatory repudiation.
1.2K chars
(a) If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease contract to the other, the aggrieved party may (1) for a commercially reasonable time…
AS 45.12.403 Retraction of anticipatory repudiation.
0.7K chars
(a) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has cancelled the lease contract or materially changed the aggrieved party's position or otherwise indicated that the ag…
AS 45.12.404 Substituted performance.
0.9K chars
(a) If without fault of the lessee, the lessor, and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable, but a commercially reasona…
AS 45.12.405 Excused performance.
1.4K chars
Subject to AS 45.12.404 on substituted performance, the following rules apply: (1) delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with (2) and (3) of this section is not a default under the lease contract if performance as agreed has b…
AS 45.12.406 Procedure on excused performance.
1.0K chars
(a) If the lessee receives notification of a material or indefinite delay or an allocation justified under AS 45.12.405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the goods if under an installment lease contract the …
AS 45.12.407 Irrevocable promises: finance leases.
0.8K chars
Article 5. Default. (a) In the case of a finance lease that is not a consumer lease, the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods. (b) A promise that has become irrevocable and independent under (a) of…
AS 45.12.501 Default: procedure.
1.2K chars
(a) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this chapter. (b) If the lessor or the lessee is in default under the lease contract, the party seeking enforcement has rights and remedies as provided in this chapt…
AS 45.12.502 Notice after default.
0.2K chars
Except as otherwise provided in this chapter or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the other party to the lease agreement.
AS 45.12.503 Modification or impairment of rights and remedies.
1.2K chars
(a) Except as otherwise provided in this chapter, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this chapter and may limit or alter the measure of damages recoverable under this chapter. (b) Resort to a rem…
AS 45.12.504 Liquidation of damages.
1.6K chars
(a) Damages payable by either party for default, or another act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interest, may be liquidated in the lease agreement but only at an amount or by a formula that…
AS 45.12.505 Cancellation and termination, and effect of cancellation, termination, rescission, or fraud on rights and remedies.
0.0K chars
[Repealed or reserved.]
AS 45.12.506 Statute of limitations.
1.2K chars
(a) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause of action accrued. By the original lease contract the parties may reduce the period of limitation to not less than one year. (b) A caus…
AS 45.12.507 Proof of market rent: time and place.
1.6K chars
(a) Damages based on market rent under AS 45.12.519 or 45.12.528 are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times specified in AS 45.12.519 or…
AS 45.12.508 Lessee's remedies.
2.3K chars
(a) If a lessor fails to deliver the goods in conformity with the lease contract (AS 45.12.509) or repudiates the lease contract (AS 45.12.402), or a lessee rightfully rejects the goods (AS 45.12.509) or justifiably revokes acceptance of the goods under AS 45.12.517, then with re…
AS 45.12.509 Lessee's rights on improper delivery; rightful rejection.
0.5K chars
(a) Subject to the provisions of AS 45.12.510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform to the lease contract, the lessee may reject or accept the goods or accept any commercial unit or units and reject the re…
AS 45.12.510 Installment lease contracts: rejection and default.
0.9K chars
(a) Under an installment lease contract a lessee may reject a 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 fal…
AS 45.12.511 Merchant lessee's duties as to rightfully rejected goods.
1.6K chars
(a) Subject to a security interest of a lessee under AS 45.12.508(e), if a lessor or a supplier does not have an agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in the lessee's possession or control, shall follow any reasonable i…
AS 45.12.512 Lessee's duties as to rightfully rejected goods.
1.0K chars
(a) Except as otherwise provided under AS 45.12.511, with respect to goods that threaten to decline in value speedily and subject to a security interest of a lessee under AS 45.12.508(e), (1) the lessee, after rejection of goods in the lessee's possession, shall hold them with re…
AS 45.12.513 Cure by lessor of improper tender or delivery; replacement.
0.7K chars
(a) If a tender or delivery by the lessor or the supplier is rejected because it is nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a …
AS 45.12.514 Waiver of lessee's objections.
0.7K chars
(a) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default (1) if, stated seasonably, the lessor or the supplier could have cur…
AS 45.12.515 Acceptance of goods.
0.5K chars
(a) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and (1) the lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will take…
AS 45.12.516 Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over.
2.5K chars
(a) A lessee must pay rent for goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered. (b) A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowl…
AS 45.12.517 Revocation of acceptance of goods.
1.4K chars
(a) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it, (1) except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it has…
AS 45.12.518 Cover; substitute goods.
1.5K chars
(a) After a default, by a lessor under the lease contract, of the type described in AS 45.12.508(a), or, if agreed, after other default by the lessor, the lessee may cover by making a purchase or lease of or contract to purchase or lease goods in substitution for those due from t…
AS 45.12.519 Lessee's damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods.
1.9K chars
(a) Except as otherwise provided under AS 45.12.504 with respect to damages liquidated in the lease agreement or otherwise determined under agreement of the parties under AS 45.01.302 and AS 45.12.503, if a lessee elects not to cover or a lessee elects to cover and the cover is b…
AS 45.12.520 Lessee's incidental and consequential damages.
0.8K chars
(a) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, ex…
AS 45.12.521 Lessee's right to specific performance or replevin.
0.6K chars
(a) Specific performance may be decreed if the goods are unique or in other proper circumstances. (b) A decree for specific performance may include any terms and conditions as to payment of the rent, damages, or other relief that the court considers just. (c) A lessee has a right…
AS 45.12.522 Lessee's right to goods on lessor's insolvency.
0.6K chars
(a) Subject to (b) of this section and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract under AS 45.12.217 on making and keeping good a tender of any unpaid portion of the rent and s…
AS 45.12.523 Lessor's remedies.
2.0K chars
(a) 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 the goods involved, and with respect to all of the goods if under an installment lease contract the value…
AS 45.12.524 Lessor's right to identify goods to lease contract.
0.9K chars
(a) After default, by the lessee under the lease contract, of the type described in AS 45.12.523(a) or (c)(1) or, if agreed, after other default by the lessee, the lessor may (1) identify to the lease contract conforming goods not already identified if at the time the lessor lear…
AS 45.12.525 Lessor's right to possession of goods.
0.9K chars
(a) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (b) After a default, by the lessee under the lease contract, of the type described in AS 45.12.523(a) or (c)(1), or, if agreed, after other default by the lessee, the lessor has the …
AS 45.12.526 Lessor's stoppage of delivery in transit or otherwise.
1.3K chars
(a) 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 …
AS 45.12.527 Lessor's rights to dispose of goods.
2.3K chars
(a) After a default, by a lessee under the lease contract, of the type described in AS 45.12.523(a) or (c)(1) or after the lessor refuses to deliver or takes possession of goods under AS 45.12.525 or 45.12.526, or, if agreed, after other default by a lessee, the lessor may dispos…
AS 45.12.528 Lessor's damages for nonacceptance, failure to pay, repudiation, or other default.
1.8K chars
(a) Except as otherwise provided with respect to damages liquidated in the lease agreement under AS 45.12.504 or otherwise determined under agreement of the parties under AS 45.01.302 and AS 45.12.503, if a lessor elects to retain the goods or a lessor elects to dispose of the go…