Title 27, Uniform Commercial Code

Subpart B. Default by Lessor §490:2A-508 Lessee's remedies. (a) If a lessor fails to deliver the goods in conformity to the lease contract (section 490:2A-509) or repudiates the lease contract (section 490:2A-402), or a lessee rightfully rejects the goods (section 490:2A-509) or …

§490:2A-509 Lessee's rights on improper delivery; rightful rejection. (a) Subject to the provisions of section 490:2A-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 …

§490:2A-510 Installment lease contracts: rejection and default. (a) 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 defec…

§490:2A-511 Merchant lessee's duties as to rightfully rejected goods. (a) Subject to any security interest of a lessee (section 490:2A-508(e)), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in t…

§490:2A-512 Lessee's duties as to rightfully rejected goods. (a) Except as otherwise provided with respect to goods that threaten to decline in value speedily (section 490:2A-511) and subject to any security interest of a lessee (section 490:2A-508(e)): (b) Action by the lessee p…

§490:2A-513 Cure by lessor of improper tender or delivery; replacement. (a) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of t…

§490:2A-514 Waiver of lessee's objections. (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: (b) A lessee's failure t…

§490:2A-515 Acceptance of goods. (a) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and: (b) Acceptance of a part of any commercial unit is acceptance of that entire unit. [L 1991, c 40, pt of §1]

§490:2A-516 Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over. (a) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for …

§490:2A-517 Revocation of acceptance of goods. (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: (b) Except in the case of a finance lease that is not a consumer lease, a…

§490:2A-518 Cover; substitute goods. (a) After a default by a lessor under the lease contract of the type described in section 490:2A-508(a), or, if agreed, after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or lease…

§490:2A-519 Lessee's damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods. (a) Except as otherwise provided with respect to damages liquidated in the lease agreement (section 490:2A-504) or otherwise determined pursuant to agreement of…

§490:2A-520 Lessee's incidental and consequential damages. (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 j…

§490:2A-521 Lessee's right to specific performance or replevin. (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 othe…

§490:2A-522 Lessee's right to goods on lessor's insolvency. (a) Subject to subsection (b) 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 (section 490:2A-217) on making and keep…

Subpart C. Default by Lessee §490:2A-523 Lessor's remedies. (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 any goods involved, and with respect to all o…

§490:2A-524 Lessor's right to identify goods to lease contract. (a) After default by the lessee under the lease contract of the type described in section 490:2A-523(a) or 490:2A-523(c)(1) or, if agreed, after other default by the lessee, the lessor may: (b) If the goods are unfin…

§490:2A-525 Lessor's right to possession of goods. (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 section 490:2A-523(a) or 490:2A-523(c)(1), or, …

§490:2A-526 Lessor's stoppage of delivery in transit or otherwise. (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…

§490:2A-527 Lessor's rights to dispose of goods. (a) After a default by a lessee under the lease contract of the type described in section 490:2A-523(a) or 490:2A-523(c)(1) or after the lessor refuses to deliver or takes possession of goods (section 490:2A-525 or 490:2A-526), or,…

§490:2A-528 Lessor's damages for nonacceptance, failure to pay, repudiation, or other default. (a) Except as otherwise provided with respect to damages liquidated in the lease agreement (section 490:2A-504) or otherwise determined pursuant to agreement of the parties (sections 49…

§490:2A-529 Lessor's action for the rent. (a) After default by the lessee under the lease contract of the type described in section 490:2A-523(a) or 490:2A-523(c)(1) or, if agreed, after other default by the lessee, if the lessor complies with subsection (b), the lessor may recov…

§490:2A-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…

§490:2A-531 Standing to sue third parties for injury to goods. (a) 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 (i) the lessor has a right of action against the third party, and (…

§490:2A-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 go…

ARTICLE 3. [OLD] COMMERCIAL PAPER REPEALED. L 1991, c 118, §5. ARTICLE 3. NEGOTIABLE INSTRUMENTS PART 1. GENERAL PROVISIONS AND DEFINITIONS §490:3-101 Short title. This article may be cited as Uniform Commercial Code--Negotiable Instruments. [L 1991, c 118, pt of §1]

§490:3-102 Subject matter. (a) This article applies to negotiable instruments. It does not apply to money, to payment orders governed by article 4A, or to securities governed by article 8. (b) If there is conflict between this article and article 4 or 9, articles 4 and 9 govern. …

§490:3-103 Definitions. (a) In this article: (b) Other definitions applying to this article and the sections in which they appear are: "Acceptance". Section 490:3-409. "Accommodated party". Section 490:3-419. "Accommodation party". Section 490:3-419. "Alteration". Section 490:3-4…

§490:3-104 Negotiable instrument. (a) Except as provided in subsections (c) and (d), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it: (b) "Instrument…

§490:3-105 Issue of instrument. (a) "Issue" means: (b) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is…

§490:3-106 Unconditional promise or order. (a) Except as provided in this section, for the purposes of section 490:3-104(a), a promise or order is unconditional unless it states (i) an express condition to payment, (ii) that the promise or order is subject to or governed by anoth…

§490:3-107 Instrument payable in foreign money. Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at…

§490:3-108 Payable on demand or at definite time. (a) A promise or order is "payable on demand" if it (i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or (ii) does not state any time of payment. (b) A promis…

§490:3-109 Payable to bearer or to order. (a) A promise or order is "payable to bearer" if it: (b) A promise or order that is not payable to bearer is "payable to order" if it is payable (i) to the order of an identified person or (ii) to an identified person or order. A promise …

§490:3-110 Identification of person to whom instrument is payable. (a) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or in the name or behalf of, the issuer of the instrument. The instrument…

§490:3-111 Place of payment. Except as otherwise provided for items in article 4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. …

§490:3-112 Interest. (a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument. (b) Interest may be stated in an instrument as a fixed or variable…

§490:3-113 Date of instrument. (a) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in section 490:4-401(c), an instrument payable on demand is not payable bef…

§490:3-114 Contradictory terms of instrument. If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers. [L 1991, c 118, pt of §1]

§490:3-115 Incomplete instrument. (a) "Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that it is incomplete but that the signer intended it to be completed by the addition of words or numbers. …

§490:3-116 Joint and several liability; contribution. (a) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers who indorse as joint payees, or anomalous indorsers are jointly and …

§490:3-117 Other agreements affecting instrument. Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement…

§490:3-118 Statute of limitations. (a) Except as provided in subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in the note or, if a due date is accelerated,…

§490:3-119 Notice of right to defend action. In an action for breach of an obligation for which a third person is answerable over pursuant to this article or article 4, the defendant may give the third person written notice of the litigation, and the person notified may then give…

PART 2. NEGOTIATION, TRANSFER, AND INDORSEMENT §490:3-201 Negotiation. (a) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby becomes its holder. (b) Except for negotiation by …

§490:3-202 Negotiation subject to rescission. (a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction. (b…

§490:3-203 Transfer of instrument; rights acquired by transfer. (a) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument. (b) Transfer of an instrument, w…

§490:3-204 Indorsement. (a) "Indorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of (i) negotiating the instrument, (ii) restricting payment of the instrument,…

§490:3-205 Special indorsement; blank indorsement; anomalous indorsement. (a) If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement identifies a person to whom it makes the instrument payable, i…

§490:3-206 Restrictive indorsement. (a) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument. (b) An indorsement stating a co…