U.C.C. - ARTICLE 1 - GENERAL PROVISIONS PART 1. GENERAL PROVISIONS 1-101. Short Titles. (a) This A!t" #a$ %e !ite& as the U'i(or# Co##er!ial Co&e. (%) This arti!le #a$ %e !ite& as U'i(or# Co##er!ial Co&e-Ge'eral Pro)isio's. 1-10*. S!o+e o( Arti!le. This arti!le a++lies to a tra'sa!tio' to the e,te't that it is -o)er'e& %$ a'other arti!le o( the U'i(or# Co##er!ial Co&e". 1-10.. Co'str/!tio' o( U'i(or# Co##er!ial Co&e" to Pro#ote its P/r+oses a'& Poli!ies0 A++li!a%ilit$ o( S/++le#e'tal Pri'!i+les o( La1. (a) The U'i(or# Co##er!ial Co&e" #/st %e li%erall$ !o'str/e& a'& a++lie& to +ro#ote its /'&erl$i'- +/r+oses a'& +oli!ies2 1hi!h are0 (1) to si#+li($2 !lari($2 a'& #o&er'i3e the la1 -o)er'i'- !o##er!ial tra'sa!tio's4 (*) to +er#it the !o'ti'/e& e,+a'sio' o( !o##er!ial +ra!ti!es thro/-h !/sto#2 /sa-e2 a'& a-ree#e't o( the +arties4 a'& (.) to #a5e /'i(or# the la1 a#o'- the )ario/s 6/ris&i!tio's. (%) U'less &is+la!e& %$ the +arti!/lar +ro)isio's o( the U'i(or# Co##er!ial Co&e"2 the +ri'!i+les o( la1 a'& e7/it$2 i'!l/&i'- the la1 #er!ha't a'& the la1 relati)e to !a+a!it$ to !o'tra!t2 +ri'!i+al a'& a-e't2 esto++el2 (ra/&2 #isre+rese'tatio'2 &/ress2 !oer!io'2 #ista5e2 %a'5r/+t!$2 a'& other )ali&ati'- or i')ali&ati'- !a/se s/++le#e't its +ro)isio's. 1-108. Co'str/!tio' A-ai'st I#+lie& Re+eal. The U'i(or# Co##er!ial Co&e" %ei'- a -e'eral a!t i'te'&e& as a /'i(ie& !o)era-e o( its s/%6e!t #atter2 'o +art o( it shall %e &ee#e& to %e i#+lie&l$ re+eale& %$ s/%se7/e't le-islatio' i( s/!h !o'str/!tio' !a' reaso'a%l$ %e a)oi&e&. 1-109. Se)era%ilit$. I( a'$ +ro)isio' or !la/se o( the U'i(or# Co##er!ial Co&e" or its a++li!atio' to a'$ +erso' or !ir!/#sta'!e is hel& i')ali&2 the i')ali&it$ &oes 'ot a((e!t other +ro)isio's or a++li!atio's o( the U'i(or# Co##er!ial Co&e" 1hi!h !a' %e -i)e' e((e!t 1itho/t the i')ali& +ro)isio' or a++li!atio'2 a'& to this e'& the +ro)isio's o( the U'i(or# Co##er!ial Co&e" are se)era%le.

1-10:. Use o( Si'-/lar a'& Pl/ral4 Ge'&er. I' the U'i(or# Co##er!ial Co&e"2 /'less the stat/tor$ !o'te,t other1ise re7/ires0 (1) 1or&s i' the si'-/lar '/#%er i'!l/&e the +l/ral2 a'& those i' the +l/ral i'!l/&e the si'-/lar4 a'& (*) 1or&s o( a'$ -e'&er also re(er to a'$ other -e'&er. 1-10;. Se!tio' Ca+tio's. Se!tio' !a+tio's are +art o( the U'i(or# Co##er!ial Co&e". 1-10INITIONS AN= PRINCIPLES O> INTERPRETATION 1-*01. Ge'eral =e(i'itio's. (a) U'less the !o'te,t other1ise re7/ires2 1or&s or +hrases &e(i'e& i' this se!tio'2 or i' the a&&itio'al &e(i'itio's !o'tai'e& i' other arti!les o( the U'i(or# Co##er!ial Co&e" that a++l$ to +arti!/lar arti!les or +arts thereo(2 ha)e the #ea'i'-s state&. (%) S/%6e!t to &e(i'itio's !o'tai'e& i' other arti!les o( the U'i(or# Co##er!ial Co&e" that a++l$ to +arti!/lar arti!les or +arts thereo(0 (1) ?A!tio'?2 i' the se'se o( a 6/&i!ial +ro!ee&i'-2 i'!l/&es re!o/+#e't2 !o/'ter!lai#2 set-o((2 s/it i' e7/it$2 a'& a'$ other +ro!ee&i'- i' 1hi!h ri-hts are &eter#i'e&. (*) ?A--rie)e& +art$? #ea's a +art$ e'title& to +/rs/e a re#e&$. (.) ?A-ree#e't?2 as &isti'-/ishe& (ro# ?!o'tra!t?2 #ea's the %ar-ai' o( the +arties i' (a!t2 as (o/'& i' their la'-/a-e or i'(erre& (ro# other !ir!/#sta'!es2 i'!l/&i'- !o/rse o( +er(or#a'!e2 !o/rse o( &eali'-2 or /sa-e o( tra&e as +ro)i&e& i' Se!tio' 1-.0.. (8) ?@a'5? #ea's a +erso' e'-a-e& i' the %/si'ess o( %a'5i'- a'& i'!l/&es a sa)i'-s %a'52 sa)i'-s a'& loa' asso!iatio'2 !re&it /'io'2 a'& tr/st !o#+a'$. (9) ?@earer? #ea's a +erso' i' +ossessio' o( a 'e-otia%le i'str/#e't2 &o!/#e't o( title2 or !erti(i!ate& se!/rit$ that is +a$a%le to %earer or i'&orse& i' %la'5. (:) ?@ill o( la&i'-? #ea's a &o!/#e't e)i&e'!i'- the re!ei+t o( -oo&s (or shi+#e't iss/e& %$ a +erso' e'-a-e& i' the %/si'ess o( tra's+orti'- or (or1ar&i'- -oo&s. (;) ?@ra'!h? i'!l/&es a se+aratel$ i'!or+orate& (orei-' %ra'!h o( a %a'5.

(a!ie E)i&e'!e %$ Thir&-Part$ =o!/#e'ts. A &o!/#e't i' &/e (or# +/r+orti'- to %e a %ill o( la&i'-2 +oli!$ or !erti(i!ate o( i's/ra'!e2 o((i!ial 1ei-herBs or i's+e!torBs !erti(i!ate2 !o's/lar i')oi!e2 or a'$ other &o!/#e't a/thori3e& or re7/ire& %$ the !o'tra!t to %e iss/e& %$ a thir& +art$ is +ri#a (a!ie e)i&e'!e o( its o1' a/the'ti!it$ a'& -e'/i'e'ess a'& o( the (a!ts state& i' the &o!/#e't %$ the thir& +art$. 1-.0ro# This Arti!le. U'less the !o'te,t other1ise re7/ires2 this Arti!le a++lies to tra'sa!tio's i' -oo&s4 it &oes 'ot a++l$ to a'$ tra'sa!tio' 1hi!h altho/-h i' the (or# o( a' /'!o'&itio'al !o'tra!t to sell or +rese't sale is i'te'&e& to o+erate o'l$ as a se!/rit$ tra'sa!tio' 'or &oes this Arti!le i#+air or re+eal a'$ stat/te re-/lati'- sales to !o's/#ers2 (ar#ers or other s+e!i(ie& !lasses o( %/$ers. *-10.. =e(i'itio's a'& I'&e, o( =e(i'itio's. (1) I' this Arti!le /'less the !o'te,t other1ise re7/ires (a) ?@/$er? #ea's a +erso' that %/$s or !o'tra!ts to %/$ -oo&s. (%) ?Co's+i!/o/s?2 1ith re(ere'!e to a ter#2 #ea's so 1ritte'2 &is+la$e&2 or +rese'te& that a reaso'a%le +erso' a-ai'st 1hi!h it is to o+erate o/-ht to ha)e 'oti!e& it. A ter# i' a' ele!tro'i! re!or& i'te'&e& to e)o5e a res+o'se %$ a' ele!tro'i! a-e't is !o's+i!/o/s i( it is +rese'te& i' a (or# that 1o/l& e'a%le a reaso'a%l$ !o'(i-/re& ele!tro'i! a-e't to ta5e it i'to a!!o/'t or rea!t to it 1itho/t re)ie1 o( the re!or& %$ a' i'&i)i&/al. Chether a ter# is ?!o's+i!/o/s? or 'ot is a &e!isio' (or the !o/rt. Co's+i!/o/s ter#s i'!l/&e the (ollo1i'-0 (i) (or a +erso'0 (A) a hea&i'- i' !a+itals e7/al to or -reater i' si3e tha' the s/rro/'&i'- te,t2 or i' !o'trasti'- t$+e2 (o't2 or !olor to the s/rro/'&i'- te,t o( the sa#e or lesser si3e4 a'& (@) la'-/a-e i' the %o&$ o( a re!or& or &is+la$ i' lar-er t$+e tha' the s/rro/'&i'- te,t2 or i' !o'trasti'- t$+e2 (o't2 or !olor to the s/rro/'&i'- te,t o( the sa#e si3e2 or set o(( (ro# s/rro/'&i'- te,t o( the sa#e si3e %$ s$#%ols or other #ar5s that !all atte'tio' to the la'-/a-e4 a'& (ii) (or a +erso' or a' ele!tro'i! a-e't2 a ter# that is so +la!e& i' a re!or& or &is+la$ that the +erso' or ele!tro'i! a-e't #a$ 'ot +ro!ee& 1itho/t ta5i'- a!tio' 1ith res+e!t to the +arti!/lar ter#.

(!) ?Co's/#er? #ea's a' i'&i)i&/al 1ho %/$s or !o'tra!ts to %/$ -oo&s that2 at the ti#e o( !o'tra!ti'-2 are i'te'&e& %$ the i'&i)i&/al to %e /se& +ri#aril$ (or +erso'al2 (a#il$2 or ho/sehol& +/r+oses. (&) ?Co's/#er !o'tra!t? #ea's a !o'tra!t %et1ee' a #er!ha't seller a'& a !o's/#er. (e) ?=eli)er$? #ea's the )ol/'tar$ tra's(er o( +h$si!al +ossessio' or !o'trol o( -oo&s. (() ?Ele!tro'i!? #ea's relati'- to te!h'olo-$ ha)i'- ele!tri!al2 &i-ital2 #a-'eti!2 1ireless2 o+ti!al2 ele!tro#a-'eti!2 or si#ilar !a+a%ilities. (-) ?Ele!tro'i! a-e't? #ea's a !o#+/ter +ro-ra# or a' ele!tro'i! or other a/to#ate& #ea's /se& i'&e+e'&e'tl$ to i'itiate a' a!tio' or res+o'& to ele!tro'i! re!or&s or +er(or#a'!es i' 1hole or i' +art2 1itho/t re)ie1 or a!tio' %$ a' i'&i)i&/al. (h) ?Ele!tro'i! re!or&? #ea's a re!or& !reate&2 -e'erate&2 se't2 !o##/'i!ate&2 re!ei)e&2 or store& %$ ele!tro'i! #ea's. (i) ?>orei-' e,!ha'-e tra'sa!tio'? #ea's a tra'sa!tio' i' 1hi!h o'e +art$ a-rees to &eli)er a 7/a'tit$ o( a s+e!i(ie& #o'e$ or /'it o( a!!o/'t i' !o'si&eratio' o( the other +art$Bs a-ree#e't to &eli)er a'other 7/a'tit$ o( a &i((ere't #o'e$ or /'it o( a!!o/'t either !/rre'tl$ or at a (/t/re &ate2 a'& i' 1hi!h &eli)er$ is to %e thro/-h (/'&s tra's(er2 %oo5 e'tr$ a!!o/'ti'-2 or other (or# o( +a$#e't or&er2 or other a-ree& #ea's to tra's(er a !re&it %ala'!e. The ter# i'!l/&es a tra'sa!tio' o( this t$+e i')ol)i'- t1o or #ore #o'e$s a'& s+ot2 (or1ar&2 o+tio'2 or other +ro&/!ts &eri)e& (ro# /'&erl$i'- #o'e$s a'& a'$ !o#%i'atio' o( these tra'sa!tio's. The ter# &oes 'ot i'!l/&e a tra'sa!tio' i')ol)i'- t1o or #ore #o'e$s i' 1hi!h o'e or %oth o( the +arties is o%li-ate& to #a5e +h$si!al &eli)er$2 at the ti#e o( !o'tra!ti'- or i' the (/t/re2 o( %a'5'otes2 !oi's2 or other (or# o( le-al te'&er or s+e!ie. (6) Reser)e&" (6) ?Goo& (aith? #ea's ho'est$ i' (a!t a'& the o%ser)a'!e o( reaso'a%le !o##er!ial sta'&ar&s o( (air &eali'-." Le-islati)e Note0 The &e(i'itio' o( ?-oo& (aith? sho/l& 'ot %e a&o+te& i( the 6/ris&i!tio' has e'a!te& this &e(i'itio' as +art o( Arti!le 1. (5) ?Goo&s? #ea's all thi'-s that are #o)a%le at the ti#e o( i&e'ti(i!atio' to a !o'tra!t (or sale. The ter# i'!l/&es (/t/re -oo&s2 s+e!iall$ #a'/(a!t/re& -oo&s2 the /'%or' $o/'- o( a'i#als2 -ro1i'- !ro+s2 a'& other i&e'ti(ie& thi'-s atta!he& to realt$ as &es!ri%e& i' Se!tio' *-10;. The ter# &oes 'ot i'!l/&e i'(or#atio'2 the #o'e$ i' 1hi!h the +ri!e is to %e +ai&2 i')est#e't se!/rities /'&er Arti!le /t/re Goo&s?. Se!tio' *-109. ?Goo&s?. Se!tio' *-10.. ?I&e'ti(i!atio'?. Se!tio' *-901. ?I'stall#e't !o'tra!t?. Se!tio' *-:1*. ?Lot?. Se!tio' *-109. ?Eer!ha't?. Se!tio' *-108. ?Perso' i' +ositio' o( Seller?. Se!tio' *-;0;. ?Prese't sale?. Se!tio' *-10:.

?Sale?. Se!tio' *-10:. ?Sale o' a++ro)al?. Se!tio' *-.*:. ?Sale or ret/r'?. Se!tio' *-.*:. ?Ter#i'atio'?. Se!tio' *-10:. (.) ?Co'trol? as +ro)i&e& i' Se!tio' ;-10: a'& the (ollo1i'- &e(i'itio's i' other Arti!les a++l$ to this Arti!le0 ?Che!5?. Se!tio' .-108((). ?Co'si-'ee?. Se!tio' ;-10*(.). ?Co'si-'or?. Se!tio' ;-10*(8). ?Co's/#er Goo&s?. Se!tio' A-10*(a)(*.). ?=isho'or?. Se!tio' .-90*. ?=ra(t?. Se!tio' .-108(e). ?Do'or?. Se!tio' 9-10*(a)(i'a'!i'- A-e'!$?. (1) ?Eer!ha't? #ea's a +erso' that &eals i' -oo&s o( the 5i'& or other1ise hol&s itsel( o/t %$ o!!/+atio' as ha)i'5'o1le&-e or s5ill +e!/liar to the +ra!ti!es or -oo&s i')ol)e& i' the tra'sa!tio' or to 1hi!h the 5'o1le&-e or s5ill #a$ %e attri%/te& %$ the +erso'Bs e#+lo$#e't o( a' a-e't or %ro5er or other i'ter#e&iar$ that hol&s itsel( o/t %$ o!!/+atio' as ha)i'- the 5'o1le&-e or s5ill. (*) ?>i'a'!i'- a-e'!$? #ea's a %a'52 (i'a'!e !o#+a'$ or other +erso' that i' the or&i'ar$ !o/rse o( %/si'ess #a5es a&)a'!es a-ai'st -oo&s or &o!/#e'ts o( title or that %$ arra'-e#e't 1ith either the seller or the %/$er i'ter)e'es i' or&i'ar$ !o/rse to #a5e or !olle!t +a$#e't &/e or !lai#e& /'&er the !o'tra!t (or sale2 as %$ +/r!hasi'- or +a$i'- the sellerBs &ra(t or #a5i'- a&)a'!es a-ai'st it or %$ #erel$ ta5i'- it (or !olle!tio' 1hether or 'ot &o!/#e'ts o( title a!!o#+a'$ or are asso!iate& 1ith the &ra(t. The ter# i'!l/&es also a %a'5 or other +erso' that si#ilarl$ i'ter)e'es %et1ee' +erso's that are i' the +ositio' o( seller a'& %/$er i' res+e!t to the -oo&s (Se!tio' *-;0;).

(.) ?@et1ee' Eer!ha'ts? #ea's i' a'$ tra'sa!tio' 1ith res+e!t to 1hi!h %oth +arties are !har-ea%le 1ith the 5'o1le&-e or s5ill o( #er!ha'ts. *-109. =e(i'itio's0 Tra's(era%ilit$4 ?>/t/re? Goo&s4 ?Lot?4 ?Co##er!ial U'it?. (1) Goo&s #/st %e %oth e,isti'- a'& i&e'ti(ie& %e(ore a'$ i'terest i' the# #a$ +ass. Goo&s that are 'ot %oth e,isti'- a'& i&e'ti(ie& are ?(/t/re? -oo&s. A +/r+orte& +rese't sale o( (/t/re -oo&s or o( a'$ i'terest therei' o+erates as a !o'tra!t to sell. (*) There #a$ %e a sale o( a +art i'terest i' e,isti'- i&e'ti(ie& -oo&s. (.) A' /'&i)i&e& share i' a' i&e'ti(ie& %/l5 o( (/'-i%le -oo&s is s/((i!ie'tl$ i&e'ti(ie& to %e sol& altho/-h the 7/a'tit$ o( the %/l5 is 'ot &eter#i'e&. A'$ a-ree& +ro+ortio' o( the %/l5 or a'$ 7/a'tit$ thereo( a-ree& /+o' %$ '/#%er2 1ei-ht2 or other #eas/re #a$ to the e,te't o( the sellerBs i'terest i' the %/l5 %e sol& to the %/$er that the' %e!o#es a' o1'er i' !o##o'. (8) ?Lot? #ea's a +ar!el or a si'-le arti!le 1hi!h is the s/%6e!t #atter o( a se+arate sale or &eli)er$2 1hether or 'ot it is s/((i!ie't to +er(or# the !o'tra!t. (9) ?Co##er!ial /'it? #ea's s/!h a /'it o( -oo&s as %$ !o##er!ial /sa-e is a si'-le 1hole (or +/r+oses o( sale a'& &i)isio' o( 1hi!h #ateriall$ i#+airs its !hara!ter or )al/e o' the #ar5et or i' /se. A !o##er!ial /'it #a$ %e a si'-le arti!le (as a #a!hi'e) or a set o( arti!les (as a s/ite o( (/r'it/re or a' assort#e't o( si3es) or a 7/a'tit$ (as a %ale2 -ross2 or !arloa&) or a'$ other /'it treate& i' /se or i' the rele)a't #ar5et as a si'-le 1hole. *-10:. =e(i'itio's0 ?Co'tra!t?4 ?A-ree#e't?4 ?Co'tra!t (or sale?4 ?Sale?4 ?Prese't sale?4 ?Co'(or#i'-? to Co'tra!t4 ?Ter#i'atio'?4 ?Ca'!ellatio'?. (1) I' this Arti!le /'less the !o'te,t other1ise re7/ires ?!o'tra!t? a'& ?a-ree#e't? are li#ite& to those relati'- to the +rese't or (/t/re sale o( -oo&s. ?Co'tra!t (or sale? i'!l/&es %oth a +rese't sale o( -oo&s a'& a !o'tra!t to sell -oo&s at a (/t/re ti#e. A ?sale? !o'sists i' the +assi'- o( title (ro# the seller to the %/$er (or a +ri!e (Se!tio' *801). A ?+rese't sale? #ea's a sale 1hi!h is a!!o#+lishe& %$ the #a5i'- o( the !o'tra!t. (*) Goo&s or !o'&/!t i'!l/&i'- a'$ +art o( a +er(or#a'!e are ?!o'(or#i'-? or !o'(or# to the !o'tra!t 1he' the$ are i' a!!or&a'!e 1ith the o%li-atio's /'&er the !o'tra!t. (.) ?Ter#i'atio'? o!!/rs 1he' either +art$ +/rs/a't to a +o1er !reate& %$ a-ree#e't or la1 +/ts a' e'& to the !o'tra!t other1ise tha' (or its %rea!h. O' ?ter#i'atio'? all o%li-atio's 1hi!h are still e,e!/tor$ o' %oth si&es are &is!har-e& %/t a'$ ri-ht %ase& o' +rior %rea!h or +er(or#a'!e s/r)i)es. (8) ?Ca'!ellatio'? o!!/rs 1he' either +art$ +/ts a' e'& to the !o'tra!t (or %rea!h %$ the other a'& its e((e!t is the sa#e as that o( ?ter#i'atio'? e,!e+t that the !a'!elli'- +art$ also retai's a'$ re#e&$ (or %rea!h o( the 1hole !o'tra!t or a'$ /'+er(or#e& %ala'!e.

*-10;. Goo&s to @e Se)ere& >ro# Realt$0 Re!or&i'-. (1) A !o'tra!t (or the sale o( #i'erals or the li5e (i'!l/&i'- oil a'& -as) or a str/!t/re or its #aterials to %e re#o)e& (ro# realt$ is a !o'tra!t (or the sale o( -oo&s 1ithi' this Arti!le i( the$ are to %e se)ere& %$ the seller %/t /'til se)era'!e a +/r+orte& +rese't sale thereo( 1hi!h is 'ot e((e!ti)e as a tra's(er o( a' i'terest i' la'& is e((e!ti)e o'l$ as a !o'tra!t to sell. (*) A !o'tra!t (or the sale a+art (ro# the la'& o( -ro1i'- !ro+s or other thi'-s atta!he& to realt$ a'& !a+a%le o( se)era'!e 1itho/t #aterial har# thereto %/t 'ot &es!ri%e& i' s/%se!tio' (1) or o( ti#%er to %e !/t is a !o'tra!t (or the sale o( -oo&s 1ithi' this Arti!le 1hether the s/%6e!t #atter is to %e se)ere& %$ the %/$er or %$ the seller e)e' tho/-h it (or#s +art o( the realt$ at the ti#e o( !o'tra!ti'-2 a'& the +arties !a' %$ i&e'ti(i!atio' e((e!t a +rese't sale %e(ore se)era'!e. (.) The +ro)isio's o( this se!tio' are s/%6e!t to a'$ thir& +art$ ri-hts +ro)i&e& %$ the la1 relati'- to realt$ re!or&s2 a'& the !o'tra!t (or sale #a$ %e e,e!/te& a'& re!or&e& as a &o!/#e't tra's(erri'- a' i'terest i' la'& a'& shall the' !o'stit/te 'oti!e to thir& +arties o( the %/$erBs ri-hts /'&er the !o'tra!t (or sale. *-10ra/&s. (1) A !o'tra!t (or the sale o( -oo&s (or the +ri!e o( I92000 or #ore is 'ot e'(or!ea%le %$ 1a$ o( a!tio' or &e(e'se /'less there is so#e re!or& s/((i!ie't to i'&i!ate that a !o'tra!t (or sale has %ee' #a&e %et1ee' the +arties a'& si-'e& %$ the +art$ a-ai'st 1hi!h e'(or!e#e't is so/-ht or %$ the +art$Bs a/thori3e& a-e't or %ro5er. A re!or& is 'ot i's/((i!ie't %e!a/se it o#its or i'!orre!tl$ states a ter# a-ree& /+o' %/t the !o'tra!t is 'ot e'(or!ea%le /'&er this s/%se!tio' %e$o'& the 7/a'tit$ o( -oo&s sho1' i' the re!or&. (*) @et1ee' #er!ha'ts i( 1ithi' a reaso'a%le ti#e a re!or& i' !o'(ir#atio' o( the !o'tra!t a'& s/((i!ie't a-ai'st the se'&er is re!ei)e& a'& the +art$ re!ei)i'- it has reaso' to 5'o1 its !o'te'ts2 it satis(ies the re7/ire#e'ts o( s/%se!tio' (1) a-ai'st the re!i+ie't /'less 'oti!e o( o%6e!tio' to its !o'te'ts is -i)e' i' a re!or& 1ithi' 10 &a$s a(ter it is re!ei)e&. (.) A !o'tra!t that &oes 'ot satis($ the re7/ire#e'ts o( s/%se!tio' (1) %/t 1hi!h is )ali& i' other res+e!ts is e'(or!ea%le0 (a) i( the -oo&s are to %e s+e!iall$ #a'/(a!t/re& (or the %/$er a'& are 'ot s/ita%le (or sale to others i' the or&i'ar$ !o/rse o( the sellerBs %/si'ess a'& the seller2 %e(ore 'oti!e o( re+/&iatio' is re!ei)e& a'& /'&er !ir!/#sta'!es that reaso'a%l$ i'&i!ate that the -oo&s are (or the %/$er2 has #a&e either a s/%sta'tial %e-i''i'- o( their #a'/(a!t/re or !o##it#e'ts (or their +ro!/re#e't4 (%) i( the +art$ a-ai'st 1hi!h e'(or!e#e't is so/-ht aits i' the +art$Bs +lea&i'-2 or i' the +art$Bs testi#o'$ or other1ise /'&er oath that a !o'tra!t (or sale 1as #a&e2 %/t the !o'tra!t is 'ot e'(or!ea%le /'&er this +ara-ra+h %e$o'& the 7/a'tit$ o( -oo&s aitte&4 or (!) 1ith res+e!t to -oo&s (or 1hi!h +a$#e't has %ee' #a&e a'& a!!e+te& or 1hi!h ha)e %ee' re!ei)e& a'& a!!e+te& (Se!. *-:0:). (8) A !o'tra!t that is e'(or!ea%le /'&er this se!tio' is 'ot /'e'(or!ea%le #erel$ %e!a/se it is 'ot !a+a%le o( %ei'+er(or#e& 1ithi' o'e $ear or a'$ other +erio& a(ter its #a5i'-.

*-*0*. >i'al E,+ressio' i' a Re!or&0 Parol or E,tri'si! E)i&e'!e. (1) Ter#s 1ith res+e!t to 1hi!h the !o'(ir#ator$ re!or&s o( the +arties a-ree or 1hi!h are other1ise set (orth i' a re!or& i'te'&e& %$ the +arties as a (i'al e,+ressio' o( their a-ree#e't 1ith res+e!t to s/!h ter#s as are i'!l/&e& therei' #a$ 'ot %e !o'tra&i!te& %$ e)i&e'!e o( a'$ +rior a-ree#e't or o( a !o'te#+ora'eo/s oral a-ree#e't %/t #a$ %e s/++le#e'te& %$ e)i&e'!e o(0 (a) !o/rse o( +er(or#a'!e2 !o/rse o( &eali'-2 or /sa-e o( tra&e (Se!tio' 1-.0.)4 a'& (%) !o'siste't a&&itio'al ter#s /'less the !o/rt (i'&s the re!or& to ha)e %ee' i'te'&e& also as a !o#+lete a'& e,!l/si)e state#e't o( the ter#s o( the a-ree#e't . (*) Ter#s i' a re!or& #a$ %e e,+lai'e& %$ e)i&e'!e o( !o/rse o( +er(or#a'!e2 !o/rse o( &eali'-2 or /sa-e o( tra&e 1itho/t a +reli#i'ar$ &eter#i'atio' %$ the !o/rt that the la'-/a-e /se& is a#%i-/o/s. *-*0.. Seals I'o+erati)e. The a((i,i'- o( a seal to a re!or& e)i&e'!i'- a !o'tra!t (or sale or a' o((er to %/$ or sell -oo&s &oes 'ot !o'stit/te the re!or& a seale& i'str/#e't. The la1 1ith res+e!t to seale& i'str/#e'ts &oes 'ot a++l$ to s/!h a !o'tra!t or o((er. *-*08. >or#atio' i' Ge'eral. (1) A !o'tra!t (or sale o( -oo&s #a$ %e #a&e i' a'$ #a''er s/((i!ie't to sho1 a-ree#e't2 i'!l/&i'- o((er a'& a!!e+ta'!e2 !o'&/!t %$ %oth +arties 1hi!h re!o-'i3es the e,iste'!e o( a !o'tra!t2 the i'tera!tio' o( ele!tro'i! a-e'ts2 a'& the i'tera!tio' o( a' ele!tro'i! a-e't a'& a' i'&i)i&/al. (*) A' a-ree#e't s/((i!ie't to !o'stit/te a !o'tra!t (or sale #a$ %e (o/'& e)e' i( the #o#e't o( its #a5i'- is /'&eter#i'e&. (.) E)e' i( o'e or #ore ter#s are le(t o+e'2 a !o'tra!t (or sale &oes 'ot (ail (or i'&e(i'ite'ess i( the +arties ha)e i'te'&e& to #a5e a !o'tra!t a'& there is a reaso'a%l$ !ertai' %asis (or -i)i'- a' a++ro+riate re#e&$. (8) E,!e+t as other1ise +ro)i&e& i' Se!tio's *-*11 thro/-h *-*1.2 the (ollo1i'- r/les a++l$0 (a) A !o'tra!t #a$ %e (or#e& %$ the i'tera!tio' o( ele!tro'i! a-e'ts o( the +arties2 e)e' i( 'o i'&i)i&/al 1as a1are o( or re)ie1e& the ele!tro'i! a-e'tsB a!tio's or the res/lti'- ter#s a'& a-ree#e'ts. (%) A !o'tra!t #a$ %e (or#e& %$ the i'tera!tio' o( a' ele!tro'i! a-e't a'& a' i'&i)i&/al a!ti'- o' the i'&i)i&/alBs o1' %ehal( or (or a'other +erso'. A !o'tra!t is (or#e& i( the i'&i)i&/al ta5es a!tio's that the i'&i)i&/al is (ree to re(/se to ta5e or #a5es a state#e't2 a'& the i'&i)i&/al has reaso' to 5'o1 that the a!tio's or state#e't 1ill0 (i) !a/se the ele!tro'i! a-e't to !o#+lete the tra'sa!tio' or +er(or#a'!e4 or (ii) i'&i!ate a!!e+ta'!e o( a' o((er2 re-ar&less o( other e,+ressio's or a!tio's %$ the i'&i)i&/al to 1hi!h the ele!tro'i! a-e't !a''ot rea!t.

*-*09. >ir# O((ers. A' o((er %$ a #er!ha't to %/$ or sell -oo&s i' a si-'e& re!or& that %$ its ter#s -i)es ass/ra'!e that it 1ill %e hel& o+e' is 'ot re)o!a%le2 (or la!5 o( !o'si&eratio'2 &/ri'- the ti#e state& or i( 'o ti#e is state& (or a reaso'a%le ti#e2 %/t i' 'o e)e't #a$ s/!h +erio& o( irre)o!a%ilit$ e,!ee& three #o'ths4 %/t i' 'o e)e't #a$ the +erio& o( irre)o!a%ilit$ e,!ee& three #o'ths. A'$ s/!h ter# o( ass/ra'!e i' a (or# s/++lie& %$ the o((eree #/st %e se+aratel$ si-'e& %$ the o((eror. *-*0:. O((er a'& A!!e+ta'!e i' >or#atio' o( Co'tra!t. (1) U'less other1ise /'a#%i-/o/sl$ i'&i!ate& %$ the la'-/a-e or !ir!/#sta'!es (a) a' o((er to #a5e a !o'tra!t shall %e !o'str/e& as i')iti'- a!!e+ta'!e i' a'$ #a''er a'& %$ a'$ #e&i/# reaso'a%le i' the !ir!/#sta'!es0 (%) a' or&er or other o((er to %/$ -oo&s (or +ro#+t or !/rre't shi+#e't shall %e !o'str/e& as i')iti'- a!!e+ta'!e either %$ a +ro#+t +ro#ise to shi+ or %$ the +ro#+t or !/rre't shi+#e't o( !o'(or#i'- or 'o'!o'(or#i'- -oo&s2 %/t the shi+#e't o( 'o'!o'(or#i'- -oo&s is 'ot a' a!!e+ta'!e i( the seller seaso'a%l$ 'oti(ies the %/$er that the shi+#e't is o((ere& o'l$ as a' a!!o##o&atio' to the %/$er. (*) I( the %e-i''i'- o( a re7/este& +er(or#a'!e is a reaso'a%le #o&e o( a!!e+ta'!e2 a' o((eror that is 'ot 'oti(ie& o( a!!e+ta'!e 1ithi' a reaso'a%le ti#e #a$ treat the o((er as ha)i'- la+se& %e(ore a!!e+ta'!e. (.) A &e(i'ite a'& seaso'a%le e,+ressio' o( a!!e+ta'!e i' a re!or& o+erates as a' a!!e+ta'!e e)e' i( it !o'tai's ter#s a&&itio'al to or &i((ere't (ro# the o((er. *-*0;. Ter#s o( Co'tra!t4 E((e!t o( Co'(ir#atio'. S/%6e!t to Se!tio' *-*0*2 i( (i) !o'&/!t %$ %oth +arties re!o-'i3es the e,iste'!e o( a !o'tra!t altho/-h their re!or&s &o 'ot other1ise esta%lish a !o'tra!t2 (ii) a !o'tra!t is (or#e& %$ a' o((er a'& a!!e+ta'!e2 or (iii) a !o'tra!t (or#e& i' a'$ #a''er is !o'(ir#e& %$ a re!or& that !o'tai's ter#s a&&itio'al to or &i((ere't (ro# those i' the !o'tra!t %ei'- !o'(ir#e&2 the ter#s o( the !o'tra!t are0 (a) ter#s that a++ear i' the re!or&s o( %oth +arties4 (%) ter#s2 1hether i' a re!or& or 'ot2 to 1hi!h %oth +arties a-ree4 a'& (!) ter#s s/++lie& or i'!or+orate& /'&er a'$ +ro)isio' o( this A!t. *-*0ail/re to =eli)er or I'sol)e'!$. (1) S/%6e!t to s/%se!tio's (*) a'& (.) a'& e)e' tho/-h the -oo&s ha)e 'ot %ee' shi++e& a %/$er 1ho has +ai& a +art or all o( the +ri!e o( -oo&s i' 1hi!h he has a s+e!ial +ro+ert$ /'&er the +ro)isio's o( the i##e&iatel$ +re!e&i'se!tio' #a$ o' #a5i'- a'& 5ee+i'- -oo& a te'&er o( a'$ /'+ai& +ortio' o( their +ri!e re!o)er the# (ro# the seller i(0 (a) i' the !ase o( -oo&s %o/-ht (or +erso'al2 (a#il$2 or ho/sehol& +/r+oses2 the seller re+/&iates or (ails to &eli)er as re7/ire& %$ the !o'tra!t4 or (%) i' other !ases2 the seller %e!o#es i'sol)e't 1ithi' te' &a$s a(ter re!ei+t o( the (irst i'stall#e't o' their +ri!e. (*) The %/$erBs ri-ht to re!o)er the -oo&s /'&er s/%se!tio' (1)(a) )ests /+o' a!7/isitio' o( a s+e!ial +ro+ert$2 e)e' i( the seller ha& 'ot the' re+/&iate& or (aile& to &eli)er. (.) I( the i&e'ti(i!atio' !reati'- his s+e!ial +ro+ert$ has %ee' #a&e %$ the %/$er he a!7/ires the ri-ht to re!o)er the -oo&s o'l$ i( the$ !o'(or# to the !o'tra!t (or sale.

*-90.. Ea''er o( SellerBs Te'&er o( =eli)er$. (1) Te'&er o( &eli)er$ re7/ires that the seller +/t a'& hol& !o'(or#i'- -oo&s at the %/$erBs &is+ositio' a'& -i)e the %/$er a'$ 'oti(i!atio' reaso'a%l$ 'e!essar$ to e'a%le hi# to ta5e &eli)er$. The #a''er2 ti#e a'& +la!e (or te'&er are &eter#i'e& %$ the a-ree#e't a'& this Arti!le2 a'& i' +arti!/lar (a) te'&er #/st %e at a reaso'a%le ho/r2 a'& i( it is o( -oo&s the$ #/st %e 5e+t a)aila%le (or the +erio& reaso'a%l$ 'e!essar$ to e'a%le the %/$er to ta5e +ossessio'4 %/t (%) /'less other1ise a-ree& the %/$er #/st (/r'ish (a!ilities reaso'a%l$ s/ite& to the re!ei+t o( the -oo&s. (*) Chere the !ase is 1ithi' the 'e,t se!tio' res+e!ti'- shi+#e't te'&er re7/ires that the seller !o#+l$ 1ith its +ro)isio's. (.) Chere the seller is re7/ire& to &eli)er at a +arti!/lar &esti'atio' te'&er re7/ires that he !o#+l$ 1ith s/%se!tio' (1) a'& also i' a'$ a++ro+riate !ase te'&er &o!/#e'ts as &es!ri%e& i' s/%se!tio's (8) a'& (9) o( this se!tio'. (8) Chere -oo&s are i' the +ossessio' o( a %ailee a'& are to %e &eli)ere& 1itho/t %ei'- #o)e& (a) te'&er re7/ires that the seller either te'&er a 'e-otia%le &o!/#e't o( title !o)eri'- s/!h -oo&s or +ro!/re a!5'o1le&-#e't %$ the %ailee o( the %/$erBs ri-ht to +ossessio' o( the -oo&s4 %/t (%) te'&er to the %/$er o( a 'o'-'e-otia%le &o!/#e't o( title or o( a re!or& &ire!ti'- the %ailee to &eli)er is s/((i!ie't te'&er /'less the %/$er seaso'a%l$ o%6e!ts2 a'& e,!e+t as other1ise +ro)i&e& i' Arti!le A re!ei+t %$ the %ailee o( 'oti(i!atio' o( the %/$erBs ri-hts (i,es those ri-hts as a-ai'st the %ailee a'& all thir& +erso's4 %/t ris5 o( loss o( the -oo&s a'& o( a'$ (ail/re %$ the %ailee to ho'or the 'o'-'e-otia%le &o!/#e't o( title or to o%e$ the &ire!tio' re#ai's o' the seller /'til the %/$er has ha& a reaso'a%le ti#e to +rese't the &o!/#e't or &ire!tio'2 a'& a re(/sal %$ the %ailee to ho'or the &o!/#e't or to o%e$ the &ire!tio' &e(eats the te'&er. (9) Chere the !o'tra!t re7/ires the seller to &eli)er &o!/#e'ts (a) he #/st te'&er all s/!h &o!/#e'ts i' !orre!t (or#2 e,!e+t as +ro)i&e& i' this Arti!le 1ith res+e!t to %ills o( la&i'- i' a set (s/%se!tio' (*) o( Se!tio' *-.*.)4 a'& (%) te'&er thro/-h !/sto#ar$ %a'5i'- !ha''els is s/((i!ie't a'& &isho'or o( a &ra(t a!!o#+a'$i'- or asso!iate& 1ith the &o!/#e'ts !o'stit/tes 'o'-a!!e+ta'!e or re6e!tio'. *-908. Shi+#e't %$ Seller. Chere the seller is re7/ire& or a/thori3e& to se'& the -oo&s to the %/$er a'& the !o'tra!t &oes 'ot re7/ire hi# to &eli)er the# at a +arti!/lar &esti'atio'2 the' /'less other1ise a-ree& he #/st (a) +/t the -oo&s i' the +ossessio' o( s/!h a !arrier a'& #a5e s/!h a !o'tra!t (or their tra's+ortatio' as #a$ %e reaso'a%le ha)i'- re-ar& to the 'at/re o( the -oo&s a'& other !ir!/#sta'!es o( the !ase4 a'&

(%) o%tai' a'& +ro#+tl$ &eli)er or te'&er i' &/e (or# a'$ &o!/#e't 'e!essar$ to e'a%le the %/$er to o%tai' +ossessio' o( the -oo&s or other1ise re7/ire& %$ the a-ree#e't or %$ /sa-e o( tra&e4 a'& (!) +ro#+tl$ 'oti($ the %/$er o( the shi+#e't. >ail/re to 'oti($ the %/$er /'&er +ara-ra+h (!) or to #a5e a +ro+er !o'tra!t /'&er +ara-ra+h (a) is a -ro/'& (or re6e!tio' o'l$ i( #aterial &ela$ or loss e's/es. *-909. SellerBs Shi+#e't U'&er Reser)atio'. (1) Chere the seller has i&e'ti(ie& -oo&s to the !o'tra!t %$ or %e(ore shi+#e't0 (a) his +ro!/re#e't o( a 'e-otia%le %ill o( la&i'- to his o1' or&er or other1ise reser)es i' hi# a se!/rit$ i'terest i' the -oo&s. Dis +ro!/re#e't o( the %ill to the or&er o( a (i'a'!i'- a-e'!$ or o( the %/$er i'&i!ates i' a&&itio' o'l$ the sellerBs e,+e!tatio' o( tra's(erri'- that i'terest to the +erso' 'a#e&. (%) a 'o'-'e-otia%le %ill o( la&i'- to hi#sel( or his 'o#i'ee reser)es +ossessio' o( the -oo&s as se!/rit$ %/t e,!e+t i' a !ase o( !o'&itio'al &eli)er$ (s/%se!tio' (*) o( Se!tio' *-90;) a 'o'-'e-otia%le %ill o( la&i'- 'a#i'- the %/$er as !o'si-'ee reser)es 'o se!/rit$ i'terest e)e' tho/-h the seller retai's +ossessio' or !o'trol o( the %ill o( la&i'-. (*) Che' shi+#e't %$ the seller 1ith reser)atio' o( a se!/rit$ i'terest is i' )iolatio' o( the !o'tra!t (or sale it !o'stit/tes a' i#+ro+er !o'tra!t (or tra's+ortatio' 1ithi' the +re!e&i'- se!tio' %/t i#+airs 'either the ri-hts -i)e' to the %/$er %$ shi+#e't a'& i&e'ti(i!atio' o( the -oo&s to the !o'tra!t 'or the sellerBs +o1ers as a hol&er o( a 'e-otia%le &o!/#e't o( title. *-90:. Ri-hts o( >i'a'!i'- a-e'!$. (1) A (i'a'!i'- a-e'!$ %$ +a$i'- or +/r!hasi'- (or )al/e a &ra(t 1hi!h relates to a shi+#e't o( -oo&s a!7/ires to the e,te't o( the +a$#e't or +/r!hase a'& i' a&&itio' to its o1' ri-hts /'&er the &ra(t a'& a'$ &o!/#e't o( title se!/ri'- it a'$ ri-hts o( the shi++er i' the -oo&s i'!l/&i'- the ri-ht to sto+ &eli)er$ a'& the shi++erBs ri-ht to ha)e the &ra(t ho'ore& %$ the %/$er. (*) The ri-ht to rei#%/rse#e't o( a (i'a'!i'- a-e'!$ 1hi!h has i' -oo& (aith ho'ore& or +/r!hase& the &ra(t /'&er !o##it#e't to or a/thorit$ (ro# the %/$er is 'ot i#+aire& %$ s/%se7/e't &is!o)er$ o( &e(e!ts 1ith re(ere'!e to a'$ rele)a't &o!/#e't 1hi!h 1as a++are'tl$ re-/lar. *-90;. E((e!t o( SellerBs Te'&er4 =eli)er$ o' Co'&itio'. (1) Te'&er o( &eli)er$ is a !o'&itio' to the %/$erBs &/t$ to a!!e+t the -oo&s a'&2 /'less other1ise a-ree&2 to his &/t$ to +a$ (or the#. Te'&er e'titles the seller to a!!e+ta'!e o( the -oo&s a'& to +a$#e't a!!or&i'- to the !o'tra!t. (*) Chere +a$#e't is &/e a'& &e#a'&e& o' the &eli)er$ to the %/$er o( -oo&s or &o!/#e'ts o( title2 his ri-ht as a-ai'st the seller to retai' or &is+ose o( the# is !o'&itio'al /+o' his #a5i'- the +a$#e't &/e.

*-90INITIONS AN= IN=EJ O> =E>INITIONS. (1) I' this Arti!le /'less the !o'te,t other1ise re7/ires0 (a) ?@/$er i' or&i'ar$ !o/rse o( %/si'ess? #ea's a +erso' 1ho i' -oo& (aith a'& 1itho/t 5'o1le&-e that the sale to hi# or her" is i' )iolatio' o( the o1'ershi+ ri-hts or se!/rit$ i'terest or leasehol& i'terest o( a thir& +art$ i' the -oo&s2 %/$s i' or&i'ar$ !o/rse (ro# a +erso' i' the %/si'ess o( selli'- -oo&s o( that 5i'& %/t &oes 'ot i'!l/&e a +a1'%ro5er. ?@/$i'-? #a$ %e (or !ash or %$ e,!ha'-e o( other +ro+ert$ or o' se!/re& or /'se!/re& !re&it a'& i'!l/&es a!7/iri'- -oo&s or &o!/#e'ts o( title /'&er a +re-e,isti'- !o'tra!t (or sale %/t &oes 'ot i'!l/&e a tra's(er i' %/l5 or as se!/rit$ (or or i' total or +artial satis(a!tio' o( a #o'e$ &e%t. (%) ?Ca'!ellatio'? o!!/rs 1he' either +art$ +/ts a' e'& to the lease !o'tra!t (or &e(a/lt %$ the other +art$. (!) ?Co##er!ial /'it? #ea's s/!h a /'it o( -oo&s as %$ !o##er!ial /sa-e is a si'-le 1hole (or +/r+oses o( lease a'& &i)isio' o( 1hi!h #ateriall$ i#+airs its !hara!ter or )al/e o' the #ar5et or i' /se. A !o##er!ial /'it #a$ %e a si'-le arti!le2 as a #a!hi'e2 or a set o( arti!les2 as a s/ite o( (/r'it/re or a li'e o( #a!hi'er$2 or a 7/a'tit$2 as a -ross or !arloa&2 or a'$ other /'it treate& i' /se or i' the rele)a't #ar5et as a si'-le 1hole. (&) ?Co'(or#i'-? -oo&s or +er(or#a'!e /'&er a lease !o'tra!t #ea's -oo&s or +er(or#a'!e that are i' a!!or&a'!e 1ith the o%li-atio's /'&er the lease !o'tra!t. (e) ?Co's/#er lease? #ea's a lease that a lessor re-/larl$ e'-a-e& i' the %/si'ess o( leasi'- or selli'- #a5es to a lessee 1ho is a' i'&i)i&/al a'& 1ho ta5es /'&er the lease +ri#aril$ (or a +erso'al2 (a#il$2 or ho/sehol& +/r+ose 2 i( the total +a$#e'ts to %e #a&e /'&er the lease !o'tra!t2 e,!l/&i'- +a$#e'ts (or o+tio's to re'e1 or %/$2 &o 'ot e,!ee& ILLLLLLL". (() ?>a/lt? #ea's 1ro'-(/l a!t2 o#issio'2 %rea!h2 or &e(a/lt. (-) ?>i'a'!e lease? #ea's a lease 1ith res+e!t to 1hi!h0 (i) the lessor &oes 'ot sele!t2 #a'/(a!t/re2 or s/++l$ the -oo&s4 (ii) the lessor a!7/ires the -oo&s or the ri-ht to +ossessio' a'& /se o( the -oo&s i' !o''e!tio' 1ith the lease4 a'& (iii) o'e o( the (ollo1i'- o!!/rs0 (A) the lessee re!ei)es a !o+$ o( the !o'tra!t %$ 1hi!h the lessor a!7/ire& the -oo&s or the ri-ht to +ossessio' a'& /se o( the -oo&s %e(ore si-'i'- the lease !o'tra!t 4 (@) the lesseeBs a++ro)al o( the !o'tra!t %$ 1hi!h the lessor a!7/ire& the -oo&s or the ri-ht to +ossessio' a'& /se o( the -oo&s is a !o'&itio' to e((e!ti)e'ess o( the lease !o'tra!t4

(C) the lessee2 %e(ore si-'i'- the lease !o'tra!t2 re!ei)es a' a!!/rate a'& !o#+lete state#e't &esi-'ati'- the +ro#ises a'& 1arra'ties2 a'& a'$ &is!lai#ers o( 1arra'ties2 li#itatio's or #o&i(i!atio's o( re#e&ies2 or li7/i&ate& &a#a-es2 i'!l/&i'- those o( a thir& +art$2 s/!h as the #a'/(a!t/rer o( the -oo&s2 +ro)i&e& to the lessor %$ the +erso' s/++l$i'- the -oo&s i' !o''e!tio' 1ith or as +art o( the !o'tra!t %$ 1hi!h the lessor a!7/ire& the -oo&s or the ri-ht to +ossessio' a'& /se o( the -oo&s4 or (=) i( the lease is 'ot a !o's/#er lease2 the lessor2 %e(ore the lessee si-'s the lease !o'tra!t2 i'(or#s the lessee i' 1riti'- (a) o( the i&e'tit$ o( the +erso' s/++l$i'- the -oo&s to the lessor2 /'less the lessee has sele!te& that +erso' a'& &ire!te& the lessor to a!7/ire the -oo&s or the ri-ht to +ossessio' a'& /se o( the -oo&s (ro# that +erso'2 (%) that the lessee is e'title& /'&er this Arti!le to the +ro#ises a'& 1arra'ties2 i'!l/&i'- those o( a'$ thir& +art$2 +ro)i&e& to the lessor %$ the +erso' s/++l$i'- the -oo&s i' !o''e!tio' 1ith or as +art o( the !o'tra!t %$ 1hi!h the lessor a!7/ire& the -oo&s or the ri-ht to +ossessio' a'& /se o( the -oo&s2 a'& (!) that the lessee #a$ !o##/'i!ate 1ith the +erso' s/++l$i'- the -oo&s to the lessor a'& re!ei)e a' a!!/rate a'& !o#+lete state#e't o( those +ro#ises a'& 1arra'ties2 i'!l/&i'- a'$ &is!lai#ers a'& li#itatio's o( the# or o( re#e&ies. (h) ?Goo&s? #ea's all thi'-s that are #o)a%le at the ti#e o( i&e'ti(i!atio' to the lease !o'tra!t2 or are (i,t/res (Se!tio' *A-.0A)2 %/t the ter# &oes 'ot i'!l/&e #o'e$2 &o!/#e'ts2 i'str/#e'ts2 a!!o/'ts2 !hattel +a+er2 -e'eral i'ta'-i%les2 or #i'erals or the li5e2 i'!l/&i'- oil a'& -as2 %e(ore e,tra!tio'. The ter# also i'!l/&es the /'%or' $o/'- o( a'i#als. (i) ?I'stall#e't lease !o'tra!t? #ea's a lease !o'tra!t that a/thori3es or re7/ires the &eli)er$ o( -oo&s i' se+arate lots to %e se+aratel$ a!!e+te&2 e)e' tho/-h the lease !o'tra!t !o'tai's a !la/se ?ea!h &eli)er$ is a se+arate lease? or its e7/i)ale't. (6) ?Lease? #ea's a tra's(er o( the ri-ht to +ossessio' a'& /se o( -oo&s (or a ter# i' ret/r' (or !o'si&eratio'2 %/t a sale2 i'!l/&i'- a sale o' a++ro)al or a sale or ret/r'2 or rete'tio' or !reatio' o( a se!/rit$ i'terest is 'ot a lease. U'less the !o'te,t !learl$ i'&i!ates other1ise2 the ter# i'!l/&es a s/%lease. (5) ?Lease a-ree#e't? #ea's the %ar-ai'2 1ith res+e!t to the lease2 o( the lessor a'& the lessee i' (a!t as (o/'& i' their la'-/a-e or %$ i#+li!atio' (ro# other !ir!/#sta'!es i'!l/&i'- !o/rse o( &eali'- or /sa-e o( tra&e or !o/rse o( +er(or#a'!e as +ro)i&e& i' this Arti!le. U'less the !o'te,t !learl$ i'&i!ates other1ise2 the ter# i'!l/&es a s/%lease a-ree#e't. (l) ?Lease !o'tra!t? #ea's the total le-al o%li-atio' that res/lts (ro# the lease a-ree#e't as a((e!te& %$ this Arti!le a'& a'$ other a++li!a%le r/les o( la1. U'less the !o'te,t !learl$ i'&i!ates other1ise2 the ter# i'!l/&es a s/%lease !o'tra!t. (#) ?Leasehol& i'terest? #ea's the i'terest o( the lessor or the lessee /'&er a lease !o'tra!t. (') ?Lessee? #ea's a +erso' 1ho a!7/ires the ri-ht to +ossessio' a'& /se o( -oo&s /'&er a lease. U'less the !o'te,t !learl$ i'&i!ates other1ise2 the ter# i'!l/&es a s/%lessee.

(o) ?Lessee i' or&i'ar$ !o/rse o( %/si'ess? #ea's a +erso' 1ho i' -oo& (aith a'& 1itho/t 5'o1le&-e that the lease to hi# or her" is i' )iolatio' o( the o1'ershi+ ri-hts or se!/rit$ i'terest or leasehol& i'terest o( a thir& +art$ i' the -oo&s leases i' or&i'ar$ !o/rse (ro# a +erso' i' the %/si'ess o( selli'- or leasi'- -oo&s o( that 5i'& %/t &oes 'ot i'!l/&e a +a1'%ro5er. ?Leasi'-? #a$ %e (or !ash or %$ e,!ha'-e o( other +ro+ert$ or o' se!/re& or /'se!/re& !re&it a'& i'!l/&es a!7/iri'- -oo&s or &o!/#e'ts o( title /'&er a +re-e,isti'- lease !o'tra!t %/t &oes 'ot i'!l/&e a tra's(er i' %/l5 or as se!/rit$ (or or i' total or +artial satis(a!tio' o( a #o'e$ &e%t. (+) ?Lessor? #ea's a +erso' 1ho tra's(ers the ri-ht to +ossessio' a'& /se o( -oo&s /'&er a lease. U'less the !o'te,t !learl$ i'&i!ates other1ise2 the ter# i'!l/&es a s/%lessor. (7) ?LessorBs resi&/al i'terest? #ea's the lessorBs i'terest i' the -oo&s a(ter e,+iratio'2 ter#i'atio'2 or !a'!ellatio' o( the lease !o'tra!t. (r) ?Lie'? #ea's a !har-e a-ai'st or i'terest i' -oo&s to se!/re +a$#e't o( a &e%t or +er(or#a'!e o( a' o%li-atio'2 %/t the ter# &oes 'ot i'!l/&e a se!/rit$ i'terest. (s) ?Lot? #ea's a +ar!el or a si'-le arti!le that is the s/%6e!t #atter o( a se+arate lease or &eli)er$2 1hether or 'ot it is s/((i!ie't to +er(or# the lease !o'tra!t. (t) ?Eer!ha't lessee? #ea's a lessee that is a #er!ha't 1ith res+e!t to -oo&s o( the 5i'& s/%6e!t to the lease. (/) ?Prese't )al/e? #ea's the a#o/'t as o( a &ate !ertai' o( o'e or #ore s/#s +a$a%le i' the (/t/re2 &is!o/'te& to the &ate !ertai'. The &is!o/'t is &eter#i'e& %$ the i'terest rate s+e!i(ie& %$ the +arties i( the rate 1as 'ot #a'i(estl$ /'reaso'a%le at the ti#e the tra'sa!tio' 1as e'tere& i'to4 other1ise2 the &is!o/'t is &eter#i'e& %$ a !o##er!iall$ reaso'a%le rate that ta5es i'to a!!o/'t the (a!ts a'& !ir!/#sta'!es o( ea!h !ase at the ti#e the tra'sa!tio' 1as e'tere& i'to. ()) ?P/r!hase? i'!l/&es ta5i'- %$ sale2 lease2 #ort-a-e2 se!/rit$ i'terest2 +le&-e2 -i(t2 or a'$ other )ol/'tar$ tra'sa!tio' !reati'- a' i'terest i' -oo&s. (1) ?S/%lease? #ea's a lease o( -oo&s the ri-ht to +ossessio' a'& /se o( 1hi!h 1as a!7/ire& %$ the lessor as a lessee /'&er a' e,isti'- lease. (,) ?S/++lier? #ea's a +erso' (ro# 1ho# a lessor %/$s or leases -oo&s to %e lease& /'&er a (i'a'!e lease. ($) ?S/++l$ !o'tra!t? #ea's a !o'tra!t /'&er 1hi!h a lessor %/$s or leases -oo&s to %e lease&. (3) ?Ter#i'atio'? o!!/rs 1he' either +art$ +/rs/a't to a +o1er !reate& %$ a-ree#e't or la1 +/ts a' e'& to the lease !o'tra!t other1ise tha' (or &e(a/lt. (*) Other &e(i'itio's a++l$i'- to this Arti!le a'& the se!tio's i' 1hi!h the$ a++ear are0 ?A!!essio's?. Se!tio' *A-.10(1). Se!tio' *A-.0A(1)(&).

?Co'str/!tio' #ort-a-e?.

?E'!/#%ra'!e?. ?>i,t/res?. ?>i,t/re (ili'-?. ?P/r!hase #o'e$ lease?.

Se!tio' *A-.0A(1)(e). Se!tio' *A-.0A(1)(a). Se!tio' *A-.0A(1)(%). Se!tio' *A-.0A(1)(!).

(.) The (ollo1i'- &e(i'itio's i' other Arti!les a++l$ to this Arti!le0 ?A!!o/'t?. Se!tio' A-10*(a)(*). Se!tio' *-108(.). Se!tio' *-10.(1)(a). Se!tio' A-10*(a)(11). Se!tio' A-10*(a)(*.). Se!tio' A-10*(a)(.0). Se!tio' *-80.(.). Se!tio' A-10*(a)(8*). Se!tio' A-10*(a)(8;). Se!tio' *-108(1). Se!tio' A-10*(a)(99). Se!tio' A-10*(a)(:ail/re to !o#+l$ 1ith a' a++li!a%le la1 has o'l$ the e((e!t s+e!i(ie& therei'. *A-109. TERRITORIAL APPLICATION O> ARTICLE TO GOO=S COVERE= @G CERTI>ICATE O> TITLE. S/%6e!t to the +ro)isio's o( Se!tio's *A-.08(.) a'& *A-.09(.)2 1ith res+e!t to -oo&s !o)ere& %$ a !erti(i!ate o( title iss/e& /'&er a stat/te o( this State or o( a'other 6/ris&i!tio'2 !o#+lia'!e a'& the e((e!t o( !o#+lia'!e or 'o'!o#+lia'!e 1ith a !erti(i!ate o( title stat/te are -o)er'e& %$ the la1 (i'!l/&i'- the !o'(li!t o( la1s r/les) o( the 6/ris&i!tio' iss/i'- the !erti(i!ate /'til the earlier o( (a) s/rre'&er o( the !erti(i!ate2 or (%) (o/r #o'ths a(ter the -oo&s are re#o)e& (ro# that 6/ris&i!tio' a'& therea(ter /'til a 'e1 !erti(i!ate o( title is iss/e& %$ a'other 6/ris&i!tio'. *A-10:. LIEITATION ON POCER O> PARTIES TO CONSUEER LEASE TO CDOOSE APPLICA@LE LAC AN= HU=ICIAL >ORUE. (1) I( the la1 !hose' %$ the +arties to a !o's/#er lease is that o( a 6/ris&i!tio' other tha' a 6/ris&i!tio' i' 1hi!h the lessee resi&es at the ti#e the lease a-ree#e't %e!o#es e'(or!ea%le or 1ithi' .0 &a$s therea(ter or i' 1hi!h the -oo&s are to %e /se&2 the !hoi!e is 'ot e'(or!ea%le. (*) I( the 6/&i!ial (or/# !hose' %$ the +arties to a !o's/#er lease is a (or/# that 1o/l& 'ot other1ise ha)e 6/ris&i!tio' o)er the lessee2 the !hoi!e is 'ot e'(or!ea%le. *A-10;. CAIVER OR RENUNCIATION O> CLAIE OR RIGDT A>TER =E>AULT. A'$ !lai# or ri-ht arisi'- o/t o( a' alle-e& &e(a/lt or %rea!h o( 1arra't$ #a$ %e &is!har-e& i' 1hole or i' +art 1itho/t !o'si&eratio' %$ a 1ritte' 1ai)er or re'/'!iatio' si-'e& a'& &eli)ere& %$ the a--rie)e& +art$.

*A-10OREATION AN= CONSTRUCTION O> LEASE CONTRACT Ta%le o( Co'te'ts" *A-*01. STATUTE O> >RAU=S. (1) A lease !o'tra!t is 'ot e'(or!ea%le %$ 1a$ o( a!tio' or &e(e'se /'less0 (a) the total +a$#e'ts to %e #a&e /'&er the lease !o'tra!t2 e,!l/&i'- +a$#e'ts (or o+tio's to re'e1 or %/$2 are less tha' I120004 or

(%) there is a 1riti'-2 si-'e& %$ the +art$ a-ai'st 1ho# e'(or!e#e't is so/-ht or %$ that +art$Bs a/thori3e& a-e't2 s/((i!ie't to i'&i!ate that a lease !o'tra!t has %ee' #a&e %et1ee' the +arties a'& to &es!ri%e the -oo&s lease& a'& the lease ter#. (*) A'$ &es!ri+tio' o( lease& -oo&s or o( the lease ter# is s/((i!ie't a'& satis(ies s/%se!tio' (1)(%)2 1hether or 'ot it is s+e!i(i!2 i( it reaso'a%l$ i&e'ti(ies 1hat is &es!ri%e&. (.) A 1riti'- is 'ot i's/((i!ie't %e!a/se it o#its or i'!orre!tl$ states a ter# a-ree& /+o'2 %/t the lease !o'tra!t is 'ot e'(or!ea%le /'&er s/%se!tio' (1)(%) %e$o'& the lease ter# a'& the 7/a'tit$ o( -oo&s sho1' i' the 1riti'-. (8) A lease !o'tra!t that &oes 'ot satis($ the re7/ire#e'ts o( s/%se!tio' (1)2 %/t 1hi!h is )ali& i' other res+e!ts2 is e'(or!ea%le0 (a) i( the -oo&s are to %e s+e!iall$ #a'/(a!t/re& or o%tai'e& (or the lessee a'& are 'ot s/ita%le (or lease or sale to others i' the or&i'ar$ !o/rse o( the lessorBs %/si'ess2 a'& the lessor2 %e(ore 'oti!e o( re+/&iatio' is re!ei)e& a'& /'&er !ir!/#sta'!es that reaso'a%l$ i'&i!ate that the -oo&s are (or the lessee2 has #a&e either a s/%sta'tial %e-i''i'- o( their #a'/(a!t/re or !o##it#e'ts (or their +ro!/re#e't4 (%) i( the +art$ a-ai'st 1ho# e'(or!e#e't is so/-ht aits i' that +art$Bs +lea&i'-2 testi#o'$ or other1ise i' !o/rt that a lease !o'tra!t 1as #a&e2 %/t the lease !o'tra!t is 'ot e'(or!ea%le /'&er this +ro)isio' %e$o'& the 7/a'tit$ o( -oo&s aitte&4 or (!) 1ith res+e!t to -oo&s that ha)e %ee' re!ei)e& a'& a!!e+te& %$ the lessee. (9) The lease ter# /'&er a lease !o'tra!t re(erre& to i' s/%se!tio' (8) is0 (a) i( there is a 1riti'- si-'e& %$ the +art$ a-ai'st 1ho# e'(or!e#e't is so/-ht or %$ that +art$Bs a/thori3e& a-e't s+e!i($i'- the lease ter#2 the ter# so s+e!i(ie&4 (%) i( the +art$ a-ai'st 1ho# e'(or!e#e't is so/-ht aits i' that +art$Bs +lea&i'-2 testi#o'$2 or other1ise i' !o/rt a lease ter#2 the ter# so aitte&4 or (!) a reaso'a%le lease ter#. *A-*0*. >INAL CRITTEN EJPRESSION0 PAROL OR EJTRINSIC EVI=ENCE. Ter#s 1ith res+e!t to 1hi!h the !o'(ir#ator$ #e#ora'&a o( the +arties a-ree or 1hi!h are other1ise set (orth i' a 1riti'- i'te'&e& %$ the +arties as a (i'al e,+ressio' o( their a-ree#e't 1ith res+e!t to s/!h ter#s as are i'!l/&e& therei' #a$ 'ot %e !o'tra&i!te& %$ e)i&e'!e o( a'$ +rior a-ree#e't or o( a !o'te#+ora'eo/s oral a-ree#e't %/t #a$ %e e,+lai'e& or s/++le#e'te&0 (a) %$ !o/rse o( &eali'- or /sa-e o( tra&e or %$ !o/rse o( +er(or#a'!e4 a'& (%) %$ e)i&e'!e o( !o'siste't a&&itio'al ter#s /'less the !o/rt (i'&s the 1riti'- to ha)e %ee' i'te'&e& also as a !o#+lete a'& e,!l/si)e state#e't o( the ter#s o( the a-ree#e't.

*A-*0.. SEALS INOPERATIVE. The a((i,i'- o( a seal to a 1riti'- e)i&e'!i'- a lease !o'tra!t or a' o((er to e'ter i'to a lease !o'tra!t &oes 'ot re'&er the 1riti'- a seale& i'str/#e't a'& the la1 1ith res+e!t to seale& i'str/#e'ts &oes 'ot a++l$ to the lease !o'tra!t or o((er. *A-*08. >OREATION IN GENERAL. (1) A lease !o'tra!t #a$ %e #a&e i' a'$ #a''er s/((i!ie't to sho1 a-ree#e't2 i'!l/&i'- !o'&/!t %$ %oth +arties 1hi!h re!o-'i3es the e,iste'!e o( a lease !o'tra!t. (*) A' a-ree#e't s/((i!ie't to !o'stit/te a lease !o'tra!t #a$ %e (o/'& altho/-h the #o#e't o( its #a5i'- is /'&eter#i'e&. (.) Altho/-h o'e or #ore ter#s are le(t o+e'2 a lease !o'tra!t &oes 'ot (ail (or i'&e(i'ite'ess i( the +arties ha)e i'te'&e& to #a5e a lease !o'tra!t a'& there is a reaso'a%l$ !ertai' %asis (or -i)i'- a' a++ro+riate re#e&$. *A-*09. >IRE O>>ERS. A' o((er %$ a #er!ha't to lease -oo&s to or (ro# a'other +erso' i' a si-'e& 1riti'- that %$ its ter#s -i)es ass/ra'!e it 1ill %e hel& o+e' is 'ot re)o!a%le2 (or la!5 o( !o'si&eratio'2 &/ri'- the ti#e state& or2 i( 'o ti#e is state&2 (or a reaso'a%le ti#e2 %/t i' 'o e)e't #a$ the +erio& o( irre)o!a%ilit$ e,!ee& . #o'ths. A'$ s/!h ter# o( ass/ra'!e o' a (or# s/++lie& %$ the o((eree #/st %e se+aratel$ si-'e& %$ the o((eror. *A-*0:. O>>ER AN= ACCEPTANCE IN >OREATION O> LEASE CONTRACT. (1) U'less other1ise /'a#%i-/o/sl$ i'&i!ate& %$ the la'-/a-e or !ir!/#sta'!es2 a' o((er to #a5e a lease !o'tra!t #/st %e !o'str/e& as i')iti'- a!!e+ta'!e i' a'$ #a''er a'& %$ a'$ #e&i/# reaso'a%le i' the !ir!/#sta'!es. (*) I( the %e-i''i'- o( a re7/este& +er(or#a'!e is a reaso'a%le #o&e o( a!!e+ta'!e2 a' o((eror 1ho is 'ot 'oti(ie& o( a!!e+ta'!e 1ithi' a reaso'a%le ti#e #a$ treat the o((er as ha)i'- la+se& %e(ore a!!e+ta'!e. *A-*0ICATION2 RESCISSION AN= CAIVER. (1) A' a-ree#e't #o&i($i'- a lease !o'tra!t 'ee&s 'o !o'si&eratio' to %e %i'&i'-. (*) A si-'e& lease a-ree#e't that e,!l/&es #o&i(i!atio' or res!issio' e,!e+t %$ a si-'e& 1riti'- #a$ 'ot %e other1ise #o&i(ie& or res!i'&e&2 %/t2 e,!e+t as %et1ee' #er!ha'ts2 s/!h a re7/ire#e't o' a (or# s/++lie& %$ a #er!ha't #/st %e se+aratel$ si-'e& %$ the other +art$. (.) Altho/-h a' atte#+t at #o&i(i!atio' or res!issio' &oes 'ot satis($ the re7/ire#e'ts o( s/%se!tio' (*)2 it #a$ o+erate as a 1ai)er. (8) A +art$ 1ho has #a&e a 1ai)er a((e!ti'- a' e,e!/tor$ +ortio' o( a lease !o'tra!t #a$ retra!t the 1ai)er %$ reaso'a%le 'oti(i!atio' re!ei)e& %$ the other +art$ that stri!t +er(or#a'!e 1ill %e re7/ire& o( a'$ ter# 1ai)e&2 /'less the retra!tio' 1o/l& %e /'6/st i' )ie1 o( a #aterial !ha'-e o( +ositio' i' relia'!e o' the 1ai)er.

*A-*0A. LESSEE UN=ER >INANCE LEASE AS @ENE>ICIARG O> SUPPLG CONTRACT. (1) The %e'e(it o( a s/++lierBs +ro#ises to the lessor /'&er the s/++l$ !o'tra!t a'& o( all 1arra'ties2 1hether e,+ress or i#+lie&2 i'!l/&i'- those o( a'$ thir& +art$ +ro)i&e& i' !o''e!tio' 1ith or as +art o( the s/++l$ !o'tra!t2 e,te'&s to the lessee to the e,te't o( the lesseeBs leasehol& i'terest /'&er a (i'a'!e lease relate& to the s/++l$ !o'tra!t2 %/t is s/%6e!t to the ter#s o( the 1arra't$ a'& o( the s/++l$ !o'tra!t a'& all &e(e'ses or !lai#s arisi'there(ro#. (*) The e,te'sio' o( the %e'e(it o( a s/++lierBs +ro#ises a'& o( 1arra'ties to the lessee (Se!tio' *A-*0A(1)) &oes 'ot0 (i) #o&i($ the ri-hts a'& o%li-atio's o( the +arties to the s/++l$ !o'tra!t2 1hether arisi'- there(ro# or other1ise2 or (ii) i#+ose a'$ &/t$ or lia%ilit$ /'&er the s/++l$ !o'tra!t o' the lessee. (.) A'$ #o&i(i!atio' or res!issio' o( the s/++l$ !o'tra!t %$ the s/++lier a'& the lessor is e((e!ti)e %et1ee' the s/++lier a'& the lessee /'less2 %e(ore the #o&i(i!atio' or res!issio'2 the s/++lier has re!ei)e& 'oti!e that the lessee has e'tere& i'to a (i'a'!e lease relate& to the s/++l$ !o'tra!t. I( the #o&i(i!atio' or res!issio' is e((e!ti)e %et1ee' the s/++lier a'& the lessee2 the lessor is &ee#e& to ha)e ass/#e&2 i' a&&itio' to the o%li-atio's o( the lessor to the lessee /'&er the lease !o'tra!t2 +ro#ises o( the s/++lier to the lessor a'& 1arra'ties that 1ere so #o&i(ie& or res!i'&e& as the$ e,iste& a'& 1ere a)aila%le to the lessee %e(ore #o&i(i!atio' or res!issio'. (8) I' a&&itio' to the e,te'sio' o( the %e'e(it o( the s/++lierBs +ro#ises a'& o( 1arra'ties to the lessee /'&er s/%se!tio' (1)2 the lessee retai's all ri-hts that the lessee #a$ ha)e a-ai'st the s/++lier 1hi!h arise (ro# a' a-ree#e't %et1ee' the lessee a'& the s/++lier or /'&er other la1. *A-*10. EJPRESS CARRANTIES. (1) E,+ress 1arra'ties %$ the lessor are !reate& as (ollo1s0 (a) A'$ a((ir#atio' o( (a!t or +ro#ise #a&e %$ the lessor to the lessee 1hi!h relates to the -oo&s a'& %e!o#es +art o( the %asis o( the %ar-ai' !reates a' e,+ress 1arra't$ that the -oo&s 1ill !o'(or# to the a((ir#atio' or +ro#ise. (%) A'$ &es!ri+tio' o( the -oo&s 1hi!h is #a&e +art o( the %asis o( the %ar-ai' !reates a' e,+ress 1arra't$ that the -oo&s 1ill !o'(or# to the &es!ri+tio'. (!) A'$ sa#+le or #o&el that is #a&e +art o( the %asis o( the %ar-ai' !reates a' e,+ress 1arra't$ that the 1hole o( the -oo&s 1ill !o'(or# to the sa#+le or #o&el. (*) It is 'ot 'e!essar$ to the !reatio' o( a' e,+ress 1arra't$ that the lessor /se (or#al 1or&s2 s/!h as ?1arra't? or ?-/ara'tee2? or that the lessor ha)e a s+e!i(i! i'te'tio' to #a5e a 1arra't$2 %/t a' a((ir#atio' #erel$ o( the )al/e o( the -oo&s or a state#e't +/r+orti'- to %e #erel$ the lessorBs o+i'io' or !o##e'&atio' o( the -oo&s &oes 'ot !reate a 1arra't$.

*A-*11. CARRANTIES AGAINST INTER>ERENCE AN= AGAINST IN>RINGEEENT4 LESSEEBS O@LIGATION AGAINST IN>RINGEEENT. (1) There is i' a lease !o'tra!t a 1arra't$ that (or the lease ter# 'o +erso' hol&s a !lai# to or i'terest i' the -oo&s that arose (ro# a' a!t or o#issio' o( the lessor2 other tha' a !lai# %$ 1a$ o( i'(ri'-e#e't or the li5e2 1hi!h 1ill i'ter(ere 1ith the lesseeBs e'6o$#e't o( its leasehol& i'terest. (*) E,!e+t i' a (i'a'!e lease there is i' a lease !o'tra!t %$ a lessor 1ho is a #er!ha't re-/larl$ &eali'- i' -oo&s o( the 5i'& a 1arra't$ that the -oo&s are &eli)ere& (ree o( the ri-ht(/l !lai# o( a'$ +erso' %$ 1a$ o( i'(ri'-e#e't or the li5e. (.) A lessee 1ho (/r'ishes s+e!i(i!atio's to a lessor or a s/++lier shall hol& the lessor a'& the s/++lier har#less a-ai'st a'$ !lai# %$ 1a$ o( i'(ri'-e#e't or the li5e that arises o/t o( !o#+lia'!e 1ith the s+e!i(i!atio's. *A-*1*. IEPLIE= CARRANTG O> EERCDANTA@ILITG. (1) E,!e+t i' a (i'a'!e lease2 a 1arra't$ that the -oo&s 1ill %e #er!ha'ta%le is i#+lie& i' a lease !o'tra!t i( the lessor is a #er!ha't 1ith res+e!t to -oo&s o( that 5i'&. (*) Goo&s to %e #er!ha'ta%le #/st %e at least s/!h as (a) +ass 1itho/t o%6e!tio' i' the tra&e /'&er the &es!ri+tio' i' the lease a-ree#e't4 (%) i' the !ase o( (/'-i%le -oo&s2 are o( (air a)era-e 7/alit$ 1ithi' the &es!ri+tio'4 (!) are (it (or the or&i'ar$ +/r+oses (or 1hi!h -oo&s o( that t$+e are /se&4 (&) r/'2 1ithi' the )ariatio' +er#itte& %$ the lease a-ree#e't2 o( e)e' 5i'&2 7/alit$2 a'& 7/a'tit$ 1ithi' ea!h /'it a'& a#o'- all /'its i')ol)e&4 (e) are a&e7/atel$ !o'tai'e&2 +a!5a-e&2 a'& la%ele& as the lease a-ree#e't #a$ re7/ire4 a'& (() !o'(or# to a'$ +ro#ises or a((ir#atio's o( (a!t #a&e o' the !o'tai'er or la%el. (.) Other i#+lie& 1arra'ties #a$ arise (ro# !o/rse o( &eali'- or /sa-e o( tra&e. *A-*1.. IEPLIE= CARRANTG O> >ITNESS >OR PARTICULAR PURPOSE. E,!e+t i' a (i'a'!e lease2 i( the lessor at the ti#e the lease !o'tra!t is #a&e has reaso' to 5'o1 o( a'$ +arti!/lar +/r+ose (or 1hi!h the -oo&s are re7/ire& a'& that the lessee is rel$i'- o' the lessorBs s5ill or 6/&-#e't to sele!t or (/r'ish s/ita%le -oo&s2 there is i' the lease !o'tra!t a' i#+lie& 1arra't$ that the -oo&s 1ill %e (it (or that +/r+ose.

*A-*18. EJCLUSION OR EO=I>ICATION O> CARRANTIES. (1) Cor&s or !o'&/!t rele)a't to the !reatio' o( a' e,+ress 1arra't$ a'& 1or&s or !o'&/!t te'&i'- to 'e-ate or li#it a 1arra't$ #/st %e !o'str/e& 1here)er reaso'a%le as !o'siste't 1ith ea!h other4 %/t2 s/%6e!t to the +ro)isio's o( Se!tio' *A-*0* o' +arol or e,tri'si! e)i&e'!e2 'e-atio' or li#itatio' is i'o+erati)e to the e,te't that the !o'str/!tio' is /'reaso'a%le. (*) S/%6e!t to s/%se!tio' (.)2 to e,!l/&e or #o&i($ the i#+lie& 1arra't$ o( #er!ha'ta%ilit$ or a'$ +art o( it the la'-/a-e #/st #e'tio' ?#er!ha'ta%ilit$?2 %e %$ a 1riti'-2 a'& %e !o's+i!/o/s. S/%6e!t to s/%se!tio' (.)2 to e,!l/&e or #o&i($ a'$ i#+lie& 1arra't$ o( (it'ess the e,!l/sio' #/st %e %$ a 1riti'- a'& %e !o's+i!/o/s. La'-/a-e to e,!l/&e all i#+lie& 1arra'ties o( (it'ess is s/((i!ie't i( it is i' 1riti'-2 is !o's+i!/o/s a'& states2 (or e,a#+le2 ?There is 'o 1arra't$ that the -oo&s 1ill %e (it (or a +arti!/lar +/r+ose?. (.) Not1ithsta'&i'- s/%se!tio' (*)2 %/t s/%6e!t to s/%se!tio' (8)2 (a) /'less the !ir!/#sta'!es i'&i!ate other1ise2 all i#+lie& 1arra'ties are e,!l/&e& %$ e,+ressio's li5e ?as is2? or ?1ith all (a/lts2? or %$ other la'-/a-e that i' !o##o' /'&ersta'&i'- !alls the lesseeBs atte'tio' to the e,!l/sio' o( 1arra'ties a'& #a5es +lai' that there is 'o i#+lie& 1arra't$2 i( i' 1riti'- a'& !o's+i!/o/s4 (%) i( the lessee %e(ore e'teri'- i'to the lease !o'tra!t has e,a#i'e& the -oo&s or the sa#+le or #o&el as (/ll$ as &esire& or has re(/se& to e,a#i'e the -oo&s2 there is 'o i#+lie& 1arra't$ 1ith re-ar& to &e(e!ts that a' e,a#i'atio' o/-ht i' the !ir!/#sta'!es to ha)e re)eale&4 a'& (!) a' i#+lie& 1arra't$ #a$ also %e e,!l/&e& or #o&i(ie& %$ !o/rse o( &eali'-2 !o/rse o( +er(or#a'!e2 or /sa-e o( tra&e. (8) To e,!l/&e or #o&i($ a 1arra't$ a-ai'st i'ter(ere'!e or a-ai'st i'(ri'-e#e't (Se!tio' *A-*11) or a'$ +art o( it2 the la'-/a-e #/st %e s+e!i(i!2 %e %$ a 1riti'-2 a'& %e !o's+i!/o/s2 /'less the !ir!/#sta'!es2 i'!l/&i'- !o/rse o( +er(or#a'!e2 !o/rse o( &eali'-2 or /sa-e o( tra&e2 -i)e the lessee reaso' to 5'o1 that the -oo&s are %ei'- lease& s/%6e!t to a !lai# or i'terest o( a'$ +erso'. *A-*19. CUEULATION AN= CON>LICT O> CARRANTIES EJPRESS OR IEPLIE=. Carra'ties2 1hether e,+ress or i#+lie&2 #/st %e !o'str/e& as !o'siste't 1ith ea!h other a'& as !/#/lati)e2 %/t i( that !o'str/!tio' is /'reaso'a%le2 the i'te'tio' o( the +arties &eter#i'es 1hi!h 1arra't$ is &o#i'a't. I' as!ertai'i'- that i'te'tio' the (ollo1i'- r/les a++l$0 (a) E,a!t or te!h'i!al s+e!i(i!atio's &is+la!e a' i'!o'siste't sa#+le or #o&el or -e'eral la'-/a-e o( &es!ri+tio'. (%) A sa#+le (ro# a' e,isti'- %/l5 &is+la!es i'!o'siste't -e'eral la'-/a-e o( &es!ri+tio'. (!) E,+ress 1arra'ties &is+la!e i'!o'siste't i#+lie& 1arra'ties other tha' a' i#+lie& 1arra't$ o( (it'ess (or a +arti!/lar +/r+ose.

*A-*1:. TDIR=-PARTG @ENE>ICIARIES O> EJPRESS AN= IEPLIE= CARRANTIES. Alter'ati)e A A 1arra't$ to or (or the %e'e(it o( a lessee /'&er this Arti!le2 1hether e,+ress or i#+lie&2 e,te'&s to a'$ 'at/ral +erso' 1ho is i' the (a#il$ or ho/sehol& o( the lessee or 1ho is a -/est i' the lesseeBs ho#e i( it is reaso'a%le to e,+e!t that s/!h +erso' #a$ /se2 !o's/#e2 or %e a((e!te& %$ the -oo&s a'& 1ho is i'6/re& i' +erso' %$ %rea!h o( the 1arra't$. This se!tio' &oes 'ot &is+la!e +ri'!i+les o( la1 a'& e7/it$ that e,te'& a 1arra't$ to or (or the %e'e(it o( a lessee to other +erso's. The o+eratio' o( this se!tio' #a$ 'ot %e e,!l/&e&2 #o&i(ie&2 or li#ite&2 %/t a' e,!l/sio'2 #o&i(i!atio'2 or li#itatio' o( the 1arra't$2 i'!l/&i'- a'$ 1ith res+e!t to ri-hts a'& re#e&ies2 e((e!ti)e a-ai'st the lessee is also e((e!ti)e a-ai'st a'$ %e'e(i!iar$ &esi-'ate& /'&er this se!tio'. Alter'ati)e @ A 1arra't$ to or (or the %e'e(it o( a lessee /'&er this Arti!le2 1hether e,+ress or i#+lie&2 e,te'&s to a'$ 'at/ral +erso' 1ho #a$ reaso'a%l$ %e e,+e!te& to /se2 !o's/#e2 or %e a((e!te& %$ the -oo&s a'& 1ho is i'6/re& i' +erso' %$ %rea!h o( the 1arra't$. This se!tio' &oes 'ot &is+la!e +ri'!i+les o( la1 a'& e7/it$ that e,te'& a 1arra't$ to or (or the %e'e(it o( a lessee to other +erso's. The o+eratio' o( this se!tio' #a$ 'ot %e e,!l/&e&2 #o&i(ie&2 or li#ite&2 %/t a' e,!l/sio'2 #o&i(i!atio'2 or li#itatio' o( the 1arra't$2 i'!l/&i'- a'$ 1ith res+e!t to ri-hts a'& re#e&ies2 e((e!ti)e a-ai'st the lessee is also e((e!ti)e a-ai'st the %e'e(i!iar$ &esi-'ate& /'&er this se!tio'. Alter'ati)e C A 1arra't$ to or (or the %e'e(it o( a lessee /'&er this Arti!le2 1hether e,+ress or i#+lie&2 e,te'&s to a'$ +erso' 1ho #a$ reaso'a%l$ %e e,+e!te& to /se2 !o's/#e2 or %e a((e!te& %$ the -oo&s a'& 1ho is i'6/re& %$ %rea!h o( the 1arra't$. The o+eratio' o( this se!tio' #a$ 'ot %e e,!l/&e&2 #o&i(ie&2 or li#ite& 1ith res+e!t to i'6/r$ to the +erso' o( a' i'&i)i&/al to 1ho# the 1arra't$ e,te'&s2 %/t a' e,!l/sio'2 #o&i(i!atio'2 or li#itatio' o( the 1arra't$2 i'!l/&i'- a'$ 1ith res+e!t to ri-hts a'& re#e&ies2 e((e!ti)e a-ai'st the lessee is also e((e!ti)e a-ai'st the %e'e(i!iar$ &esi-'ate& /'&er this se!tio'. *A-*1;. I=ENTI>ICATION. I&e'ti(i!atio' o( -oo&s as -oo&s to 1hi!h a lease !o'tra!t re(ers #a$ %e #a&e at a'$ ti#e a'& i' a'$ #a''er e,+li!itl$ a-ree& to %$ the +arties. I' the a%se'!e o( e,+li!it a-ree#e't2 i&e'ti(i!atio' o!!/rs0 (a) 1he' the lease !o'tra!t is #a&e i( the lease !o'tra!t is (or a lease o( -oo&s that are e,isti'- a'& i&e'ti(ie&4 (%) 1he' the -oo&s are shi++e&2 #ar5e&2 or other1ise &esi-'ate& %$ the lessor as -oo&s to 1hi!h the lease !o'tra!t re(ers2 i( the lease !o'tra!t is (or a lease o( -oo&s that are 'ot e,isti'- a'& i&e'ti(ie&4 or (!) 1he' the $o/'- are !o'!ei)e&2 i( the lease !o'tra!t is (or a lease o( /'%or' $o/'- o( a'i#als. *A-*1 LOSS. (1) E,!e+t i' the !ase o( a (i'a'!e lease2 ris5 o( loss is retai'e& %$ the lessor a'& &oes 'ot +ass to the lessee. I' the !ase o( a (i'a'!e lease2 ris5 o( loss +asses to the lessee. (*) S/%6e!t to the +ro)isio's o( this Arti!le o' the e((e!t o( &e(a/lt o' ris5 o( loss (Se!tio' *A-**0)2 i( ris5 o( loss is to +ass to the lessee a'& the ti#e o( +assa-e is 'ot state&2 the (ollo1i'- r/les a++l$0 (a) I( the lease !o'tra!t re7/ires or a/thori3es the -oo&s to %e shi++e& %$ !arrier (i) a'& it &oes 'ot re7/ire &eli)er$ at a +arti!/lar &esti'atio'2 the ris5 o( loss +asses to the lessee 1he' the -oo&s are &/l$ &eli)ere& to the !arrier4 %/t (ii) i( it &oes re7/ire &eli)er$ at a +arti!/lar &esti'atio' a'& the -oo&s are there &/l$ te'&ere& 1hile i' the +ossessio' o( the !arrier2 the ris5 o( loss +asses to the lessee 1he' the -oo&s are there &/l$ so te'&ere& as to e'a%le the lessee to ta5e &eli)er$. (%) I( the -oo&s are hel& %$ a %ailee to %e &eli)ere& 1itho/t %ei'- #o)e&2 the ris5 o( loss +asses to the lessee o' a!5'o1le&-#e't %$ the %ailee o( the lesseeBs ri-ht to +ossessio' o( the -oo&s. (!) I' a'$ !ase 'ot 1ithi' s/%se!tio' (a) or (%)2 the ris5 o( loss +asses to the lessee o' the lesseeBs re!ei+t o( the -oo&s i( the lessor2 or2 i' the !ase o( a (i'a'!e lease2 the s/++lier2 is a #er!ha't4 other1ise the ris5 +asses to the lessee o' te'&er o( &eli)er$. *A-**0. E>>ECT O> =E>AULT ON RISF O> LOSS. (1) Chere ris5 o( loss is to +ass to the lessee a'& the ti#e o( +assa-e is 'ot state&0 (a) I( a te'&er or &eli)er$ o( -oo&s so (ails to !o'(or# to the lease !o'tra!t as to -i)e a ri-ht o( re6e!tio'2 the ris5 o( their loss re#ai's 1ith the lessor2 or2 i' the !ase o( a (i'a'!e lease2 the s/++lier2 /'til !/re or a!!e+ta'!e. (%) I( the lessee ri-ht(/ll$ re)o5es a!!e+ta'!e2 he or she"2 to the e,te't o( a'$ &e(i!ie'!$ i' his or her" e((e!ti)e i's/ra'!e !o)era-e2 #a$ treat the ris5 o( loss as ha)i'- re#ai'e& 1ith the lessor (ro# the %e-i''i'-.

(*) Chether or 'ot ris5 o( loss is to +ass to the lessee2 i( the lessee as to !o'(or#i'- -oo&s alrea&$ i&e'ti(ie& to a lease !o'tra!t re+/&iates or is other1ise i' &e(a/lt /'&er the lease !o'tra!t2 the lessor2 or2 i' the !ase o( a (i'a'!e lease2 the s/++lier2 to the e,te't o( a'$ &e(i!ie'!$ i' his or her" e((e!ti)e i's/ra'!e !o)era-e #a$ treat the ris5 o( loss as resti'- o' the lessee (or a !o##er!iall$ reaso'a%le ti#e. *A-**1. CASUALTG TO I=ENTI>IE= GOO=S. I( a lease !o'tra!t re7/ires -oo&s i&e'ti(ie& 1he' the lease !o'tra!t is #a&e2 a'& the -oo&s s/((er !as/alt$ 1itho/t (a/lt o( the lessee2 the lessor or the s/++lier %e(ore &eli)er$2 or the -oo&s s/((er !as/alt$ %e(ore ris5 o( loss +asses to the lessee +/rs/a't to the lease a-ree#e't or Se!tio' *A-*1A2 the'0 (a) i( the loss is total2 the lease !o'tra!t is a)oi&e&4 a'& (%) i( the loss is +artial or the -oo&s ha)e so &eteriorate& as to 'o lo'-er !o'(or# to the lease !o'tra!t2 the lessee #a$ 'e)ertheless &e#a'& i's+e!tio' a'& at his or her" o+tio' either treat the lease !o'tra!t as a)oi&e& or2 e,!e+t i' a (i'a'!e lease that is 'ot a !o's/#er lease2 a!!e+t the -oo&s 1ith &/e allo1a'!e (ro# the re't +a$a%le (or the %ala'!e o( the lease ter# (or the &eterioratio' or the &e(i!ie'!$ i' 7/a'tit$ %/t 1itho/t (/rther ri-ht a-ai'st the lessor. PART .. E>>ECT O> LEASE CONTRACT Ta%le o( Co'te'ts" *A-.01. EN>ORCEA@ILITG O> LEASE CONTRACT. E,!e+t as other1ise +ro)i&e& i' this Arti!le2 a lease !o'tra!t is e((e!ti)e a'& e'(or!ea%le a!!or&i'- to its ter#s %et1ee' the +arties2 a-ai'st +/r!hasers o( the -oo&s a'& a-ai'st !re&itors o( the +arties. *A-.0*. TITLE TO AN= POSSESSION O> GOO=S. E,!e+t as other1ise +ro)i&e& i' this Arti!le2 ea!h +ro)isio' o( this Arti!le a++lies 1hether the lessor or a thir& +art$ has title to the -oo&s2 a'& 1hether the lessor2 the lessee2 or a thir& +art$ has +ossessio' o( the -oo&s2 'ot1ithsta'&i'- a'$ stat/te or r/le o( la1 that +ossessio' or the a%se'!e o( +ossessio' is (ra/&/le't. *A-.0.. ALIENA@ILITG O> PARTGBS INTEREST UN=ER LEASE CONTRACT OR O> LESSORBS RESI=UAL INTEREST IN GOO=S4 =ELEGATION O> PER>OREANCE4 TRANS>ER O> RIGDTS. (1) As /se& i' this se!tio'2 ?!reatio' o( a se!/rit$ i'terest? i'!l/&es the sale o( a lease !o'tra!t that is s/%6e!t to Arti!le A2 Se!/re& Tra'sa!tio's2 %$ reaso' o( Se!tio' A-10A(a)(.). (*) E,!e+t as +ro)i&e& i' s/%se!tio' (.) a'& Se!tio' A-80;2 a +ro)isio' i' a lease a-ree#e't 1hi!h (i) +rohi%its the )ol/'tar$ or i')ol/'tar$ tra's(er2 i'!l/&i'- a tra's(er %$ sale2 s/%lease2 !reatio' or e'(or!e#e't o( a se!/rit$ i'terest2 or atta!h#e't2 le)$2 or other 6/&i!ial +ro!ess2 o( a' i'terest o( a +art$ /'&er the lease !o'tra!t or o( the lessorBs resi&/al i'terest i' the -oo&s2 or (ii) #a5es s/!h a tra's(er a' e)e't o( &e(a/lt2 -i)es rise to the ri-hts a'& re#e&ies +ro)i&e& i' s/%se!tio' (8)2 %/t a tra's(er that is +rohi%ite& or is a' e)e't o( &e(a/lt /'&er the lease a-ree#e't is other1ise e((e!ti)e.

(.) A +ro)isio' i' a lease a-ree#e't 1hi!h (i) +rohi%its a tra's(er o( a ri-ht to &a#a-es (or &e(a/lt 1ith res+e!t to the 1hole lease !o'tra!t or o( a ri-ht to +a$#e't arisi'- o/t o( the tra's(erorBs &/e +er(or#a'!e o( the tra's(erorBs e'tire o%li-atio' 2 or (ii) #a5es s/!h a tra's(er a' e)e't o( &e(a/lt2 is 'ot e'(or!ea%le2 a'& s/!h a tra's(er is 'ot a tra's(er that #ateriall$ i#+airs the +ros+e!t o( o%tai'i'- ret/r' +er(or#a'!e %$2 #ateriall$ !ha'-es the &/t$ o(2 or #ateriall$ i'!reases the %/r&e' or ris5 i#+ose& o'2 the other +art$ to the lease !o'tra!t 1ithi' the +/r)ie1 o( s/%se!tio' (8). (8) S/%6e!t to s/%se!tio' (.) a'& Se!tio' A-80;0 (a) i( a tra's(er is #a&e 1hi!h is #a&e a' e)e't o( &e(a/lt /'&er a lease a-ree#e't2 the +art$ to the lease !o'tra!t 'ot #a5i'- the tra's(er2 /'less that +art$ 1ai)es the &e(a/lt or other1ise a-rees2 has the ri-hts a'& re#e&ies &es!ri%e& i' Se!tio' *A-901(*)4 (%) i( +ara-ra+h (a) is 'ot a++li!a%le a'& i( a tra's(er is #a&e that (i) is +rohi%ite& /'&er a lease a-ree#e't or (ii) #ateriall$ i#+airs the +ros+e!t o( o%tai'i'- ret/r' +er(or#a'!e %$2 #ateriall$ !ha'-es the &/t$ o(2 or #ateriall$ i'!reases the %/r&e' or ris5 i#+ose& o'2 the other +art$ to the lease !o'tra!t2 /'less the +art$ 'ot #a5i'- the tra's(er a-rees at a'$ ti#e to the tra's(er i' the lease !o'tra!t or other1ise2 the'2 e,!e+t as li#ite& %$ !o'tra!t2 (i) the tra's(eror is lia%le to the +art$ 'ot #a5i'- the tra's(er (or &a#a-es !a/se& %$ the tra's(er to the e,te't that the &a#a-es !o/l& 'ot reaso'a%l$ %e +re)e'te& %$ the +art$ 'ot #a5i'- the tra's(er a'& (ii) a !o/rt ha)i'- 6/ris&i!tio' #a$ -ra't other a++ro+riate relie(2 i'!l/&i'- !a'!ellatio' o( the lease !o'tra!t or a' i'6/'!tio' a-ai'st the tra's(er. (9) A tra's(er o( ?the lease? or o( ?all #$ ri-hts /'&er the lease?2 or a tra's(er i' si#ilar -e'eral ter#s2 is a tra's(er o( ri-hts a'&2 /'less the la'-/a-e or the !ir!/#sta'!es2 as i' a tra's(er (or se!/rit$2 i'&i!ate the !o'trar$2 the tra's(er is a &ele-atio' o( &/ties %$ the tra's(eror to the tra's(eree. A!!e+ta'!e %$ the tra's(eree !o'stit/tes a +ro#ise %$ the tra's(eree to +er(or# those &/ties. The +ro#ise is e'(or!ea%le %$ either the tra's(eror or the other +art$ to the lease !o'tra!t. (:) U'less other1ise a-ree& %$ the lessor a'& the lessee2 a &ele-atio' o( +er(or#a'!e &oes 'ot relie)e the tra's(eror as a-ai'st the other +art$ o( a'$ &/t$ to +er(or# or o( a'$ lia%ilit$ (or &e(a/lt. (;) I' a !o's/#er lease2 to +rohi%it the tra's(er o( a' i'terest o( a +art$ /'&er the lease !o'tra!t or to #a5e a tra's(er a' e)e't o( &e(a/lt2 the la'-/a-e #/st %e s+e!i(i!2 %$ a 1riti'-2 a'& !o's+i!/o/s. *A-.08. SU@SEKUENT LEASE O> GOO=S @G LESSOR. (1) S/%6e!t to Se!tio' *A-.0.2 a s/%se7/e't lessee (ro# a lessor o( -oo&s /'&er a' e,isti'- lease !o'tra!t o%tai's2 to the e,te't o( the leasehol& i'terest tra's(erre&2 the leasehol& i'terest i' the -oo&s that the lessor ha& or ha& +o1er to tra's(er2 a'& e,!e+t as +ro)i&e& i' s/%se!tio' (*) a'& Se!tio' *A-9*;(8)2 ta5es s/%6e!t to the e,isti'- lease !o'tra!t. A lessor 1ith )oi&a%le title has +o1er to tra's(er a -oo& leasehol& i'terest to a -oo& (aith s/%se7/e't lessee (or )al/e2 %/t o'l$ to the e,te't set (orth i' the +re!e&i'- se'te'!e. I( -oo&s ha)e %ee' &eli)ere& /'&er a tra'sa!tio' o( +/r!hase2 the lessor has that +o1er e)e' tho/-h0 (a) the lessorBs tra's(eror 1as &e!ei)e& as to the i&e'tit$ o( the lessor4 (%) the &eli)er$ 1as i' e,!ha'-e (or a !he!5 1hi!h is later &isho'ore&4

(!) it 1as a-ree& that the tra'sa!tio' 1as to %e a ?!ash sale?4 or (&) the &eli)er$ 1as +ro!/re& thro/-h (ra/& +/'isha%le as lar!e'o/s /'&er the !ri#i'al la1. (*) A s/%se7/e't lessee i' the or&i'ar$ !o/rse o( %/si'ess (ro# a lessor 1ho is a #er!ha't &eali'- i' -oo&s o( that 5i'& to 1ho# the -oo&s 1ere e'tr/ste& %$ the e,isti'- lessee o( that lessor %e(ore the i'terest o( the s/%se7/e't lessee %e!a#e e'(or!ea%le a-ai'st that lessor o%tai's2 to the e,te't o( the leasehol& i'terest tra's(erre&2 all o( that lessorBs a'& the e,isti'- lesseeBs ri-hts to the -oo&s2 a'& ta5es (ree o( the e,isti'- lease !o'tra!t. (.) A s/%se7/e't lessee (ro# the lessor o( -oo&s that are s/%6e!t to a' e,isti'- lease !o'tra!t a'& are !o)ere& %$ a !erti(i!ate o( title iss/e& /'&er a stat/te o( this State or o( a'other 6/ris&i!tio' ta5es 'o -reater ri-hts tha' those +ro)i&e& %oth %$ this se!tio' a'& %$ the !erti(i!ate o( title stat/te. *A-.09. SALE OR SU@LEASE O> GOO=S @G LESSEE. (1) S/%6e!t to the +ro)isio's o( Se!tio' *A-.0.2 a %/$er or s/%lessee (ro# the lessee o( -oo&s /'&er a' e,isti'lease !o'tra!t o%tai's2 to the e,te't o( the i'terest tra's(erre&2 the leasehol& i'terest i' the -oo&s that the lessee ha& or ha& +o1er to tra's(er2 a'& e,!e+t as +ro)i&e& i' s/%se!tio' (*) a'& Se!tio' *A-911(8)2 ta5es s/%6e!t to the e,isti'- lease !o'tra!t. A lessee 1ith a )oi&a%le leasehol& i'terest has +o1er to tra's(er a -oo& leasehol& i'terest to a -oo& (aith %/$er (or )al/e or a -oo& (aith s/%lessee (or )al/e2 %/t o'l$ to the e,te't set (orth i' the +re!e&i'se'te'!e. Che' -oo&s ha)e %ee' &eli)ere& /'&er a tra'sa!tio' o( lease the lessee has that +o1er e)e' tho/-h0 (a) the lessor 1as &e!ei)e& as to the i&e'tit$ o( the lessee4 (%) the &eli)er$ 1as i' e,!ha'-e (or a !he!5 1hi!h is later &isho'ore&4 or (!) the &eli)er$ 1as +ro!/re& thro/-h (ra/& +/'isha%le as lar!e'o/s /'&er the !ri#i'al la1. (*) A %/$er i' the or&i'ar$ !o/rse o( %/si'ess or a s/%lessee i' the or&i'ar$ !o/rse o( %/si'ess (ro# a lessee 1ho is a #er!ha't &eali'- i' -oo&s o( that 5i'& to 1ho# the -oo&s 1ere e'tr/ste& %$ the lessor o%tai's2 to the e,te't o( the i'terest tra's(erre&2 all o( the lessorBs a'& lesseeBs ri-hts to the -oo&s2 a'& ta5es (ree o( the e,isti'- lease !o'tra!t. (.) A %/$er or s/%lessee (ro# the lessee o( -oo&s that are s/%6e!t to a' e,isti'- lease !o'tra!t a'& are !o)ere& %$ a !erti(i!ate o( title iss/e& /'&er a stat/te o( this State or o( a'other 6/ris&i!tio' ta5es 'o -reater ri-hts tha' those +ro)i&e& %oth %$ this se!tio' a'& %$ the !erti(i!ate o( title stat/te. *A-.0:. PRIORITG O> CERTAIN LIENS ARISING @G OPERATION O> LAC. I( a +erso' i' the or&i'ar$ !o/rse o( his or her" %/si'ess (/r'ishes ser)i!es or #aterials 1ith res+e!t to -oo&s s/%6e!t to a lease !o'tra!t2 a lie' /+o' those -oo&s i' the +ossessio' o( that +erso' -i)e' %$ stat/te or r/le o( la1 (or those #aterials or ser)i!es ta5es +riorit$ o)er a'$ i'terest o( the lessor or lessee /'&er the lease !o'tra!t or this Arti!le /'less the lie' is !reate& %$ stat/te a'& the stat/te +ro)i&es other1ise or /'less the lie' is !reate& %$ r/le o( la1 a'& the r/le o( la1 +ro)i&es other1ise.

*A-.0;. PRIORITG O> LIENS ARISING @G ATTACDEENT OR LEVG ON2 SECURITG INTERESTS IN2 AN= OTDER CLAIES TO GOO=S. (1) E,!e+t as other1ise +ro)i&e& i' Se!tio' *A-.0:2 a !re&itor o( a lessee ta5es s/%6e!t to the lease !o'tra!t. (*) E,!e+t as other1ise +ro)i&e& i' s/%se!tio' (.) a'& i' Se!tio's *A-.0: a'& *A-.0 PER>OREANCE. (1) A lease !o'tra!t i#+oses a' o%li-atio' o' ea!h +art$ that the otherBs e,+e!tatio' o( re!ei)i'- &/e +er(or#a'!e 1ill 'ot %e i#+aire&. (*) I( reaso'a%le -ro/'&s (or i'se!/rit$ arise 1ith res+e!t to the +er(or#a'!e o( either +art$2 the i'se!/re +art$ #a$ &e#a'& i' 1riti'- a&e7/ate ass/ra'!e o( &/e +er(or#a'!e. U'til the i'se!/re +art$ re!ei)es that ass/ra'!e2 i( !o##er!iall$ reaso'a%le the i'se!/re +art$ #a$ s/s+e'& a'$ +er(or#a'!e (or 1hi!h he or she" has 'ot alrea&$ re!ei)e& the a-ree& ret/r'. (.) A re+/&iatio' o( the lease !o'tra!t o!!/rs i( ass/ra'!e o( &/e +er(or#a'!e a&e7/ate /'&er the !ir!/#sta'!es o( the +arti!/lar !ase is 'ot +ro)i&e& to the i'se!/re +art$ 1ithi' a reaso'a%le ti#e2 'ot to e,!ee& .0 &a$s a(ter re!ei+t o( a &e#a'& %$ the other +art$. (8) @et1ee' #er!ha'ts2 the reaso'a%le'ess o( -ro/'&s (or i'se!/rit$ a'& the a&e7/a!$ o( a'$ ass/ra'!e o((ere& #/st %e &eter#i'e& a!!or&i'- to !o##er!ial sta'&ar&s. (9) A!!e+ta'!e o( a'$ 'o'!o'(or#i'- &eli)er$ or +a$#e't &oes 'ot +re6/&i!e the a--rie)e& +art$Bs ri-ht to &e#a'& a&e7/ate ass/ra'!e o( (/t/re +er(or#a'!e. *A-80*. ANTICIPATORG REPU=IATION. I( either +art$ re+/&iates a lease !o'tra!t 1ith res+e!t to a +er(or#a'!e 'ot $et &/e /'&er the lease !o'tra!t2 the loss o( 1hi!h +er(or#a'!e 1ill s/%sta'tiall$ i#+air the )al/e o( the lease !o'tra!t to the other2 the a--rie)e& +art$ #a$0 (a) (or a !o##er!iall$ reaso'a%le ti#e2 a1ait retra!tio' o( re+/&iatio' a'& +er(or#a'!e %$ the re+/&iati'- +art$4 (%) #a5e &e#a'& +/rs/a't to Se!tio' *A-801 a'& a1ait ass/ra'!e o( (/t/re +er(or#a'!e a&e7/ate /'&er the !ir!/#sta'!es o( the +arti!/lar !ase4 or

(!) resort to a'$ ri-ht or re#e&$ /+o' &e(a/lt /'&er the lease !o'tra!t or this Arti!le2 e)e' tho/-h the a--rie)e& +art$ has 'oti(ie& the re+/&iati'- +art$ that the a--rie)e& +art$ 1o/l& a1ait the re+/&iati'- +art$Bs +er(or#a'!e a'& ass/ra'!e a'& has /r-e& retra!tio'. I' a&&itio'2 1hether or 'ot the a--rie)e& +art$ is +/rs/i'- o'e o( the (ore-oi'- re#e&ies2 the a--rie)e& +art$ #a$ s/s+e'& +er(or#a'!e or2 i( the a--rie)e& +art$ is the lessor2 +ro!ee& i' a!!or&a'!e 1ith the +ro)isio's o( this Arti!le o' the lessorBs ri-ht to i&e'ti($ -oo&s to the lease !o'tra!t 'ot1ithsta'&i'- &e(a/lt or to sal)a-e /'(i'ishe& -oo&s (Se!tio' *A-9*8). *A-80.. RETRACTION O> ANTICIPATORG REPU=IATION. (1) U'til the re+/&iati'- +art$Bs 'e,t +er(or#a'!e is &/e2 the re+/&iati'- +art$ !a' retra!t the re+/&iatio' /'less2 si'!e the re+/&iatio'2 the a--rie)e& +art$ has !a'!elle& the lease !o'tra!t or #ateriall$ !ha'-e& the a--rie)e& +art$Bs +ositio' or other1ise i'&i!ate& that the a--rie)e& +art$ !o'si&ers the re+/&iatio' (i'al. (*) Retra!tio' #a$ %e %$ a'$ #etho& that !learl$ i'&i!ates to the a--rie)e& +art$ that the re+/&iati'- +art$ i'te'&s to +er(or# /'&er the lease !o'tra!t a'& i'!l/&es a'$ ass/ra'!e &e#a'&e& /'&er Se!tio' *A-801. (.) Retra!tio' rei'states a re+/&iati'- +art$Bs ri-hts /'&er a lease !o'tra!t 1ith &/e e,!/se a'& allo1a'!e to the a--rie)e& +art$ (or a'$ &ela$ o!!asio'e& %$ the re+/&iatio'. *A-808. SU@STITUTE= PER>OREANCE. (1) I( 1itho/t (a/lt o( the lessee2 the lessor a'& the s/++lier2 the a-ree& %erthi'-2 loa&i'-2 or /'loa&i'- (a!ilities (ail or the a-ree& t$+e o( !arrier %e!o#es /'a)aila%le or the a-ree& #a''er o( &eli)er$ other1ise %e!o#es !o##er!iall$ i#+ra!ti!a%le2 %/t a !o##er!iall$ reaso'a%le s/%stit/te is a)aila%le2 the s/%stit/te +er(or#a'!e #/st %e te'&ere& a'& a!!e+te&. (*) I( the a-ree& #ea's or #a''er o( +a$#e't (ails %e!a/se o( &o#esti! or (orei-' -o)er'#e'tal re-/latio'0 (a) the lessor #a$ 1ithhol& or sto+ &eli)er$ or !a/se the s/++lier to 1ithhol& or sto+ &eli)er$ /'less the lessee +ro)i&es a #ea's or #a''er o( +a$#e't that is !o##er!iall$ a s/%sta'tial e7/i)ale't4 a'& (%) i( &eli)er$ has alrea&$ %ee' ta5e'2 +a$#e't %$ the #ea's or i' the #a''er +ro)i&e& %$ the re-/latio' &is!har-es the lesseeBs o%li-atio' /'less the re-/latio' is &is!ri#i'ator$2 o++ressi)e2 or +re&ator$. *A-809. EJCUSE= PER>OREANCE. S/%6e!t to Se!tio' *A-808 o' s/%stit/te& +er(or#a'!e2 the (ollo1i'- r/les a++l$0 (a) =ela$ i' &eli)er$ or 'o'&eli)er$ i' 1hole or i' +art %$ a lessor or a s/++lier 1ho !o#+lies 1ith +ara-ra+hs (%) a'& (!) is 'ot a &e(a/lt /'&er the lease !o'tra!t i( +er(or#a'!e as a-ree& has %ee' #a&e i#+ra!ti!a%le %$ the o!!/rre'!e o( a !o'ti'-e'!$ the 'o'o!!/rre'!e o( 1hi!h 1as a %asi! ass/#+tio' o' 1hi!h the lease !o'tra!t 1as #a&e or %$ !o#+lia'!e i' -oo& (aith 1ith a'$ a++li!a%le (orei-' or &o#esti! -o)er'#e'tal re-/latio' or or&er2 1hether or 'ot the re-/latio' or or&er later +ro)es to %e i')ali&.

(%) I( the !a/ses #e'tio'e& i' +ara-ra+h (a) a((e!t o'l$ +art o( the lessorBs or the s/++lierBs !a+a!it$ to +er(or#2 he or she" shall allo!ate +ro&/!tio' a'& &eli)eries a#o'- his or her" !/sto#ers %/t at his or her" o+tio' #a$ i'!l/&e re-/lar !/sto#ers 'ot the' /'&er !o'tra!t (or sale or lease as 1ell as his or her" o1' re7/ire#e'ts (or (/rther #a'/(a!t/re. De or she" #a$ so allo!ate i' a'$ #a''er that is (air a'& reaso'a%le. (!) The lessor seaso'a%l$ shall 'oti($ the lessee a'& i' the !ase o( a (i'a'!e lease the s/++lier seaso'a%l$ shall 'oti($ the lessor a'& the lessee2 i( 5'o1'2 that there 1ill %e &ela$ or 'o'&eli)er$ a'&2 i( allo!atio' is re7/ire& /'&er +ara-ra+h (%)2 o( the esti#ate& 7/ota th/s #a&e a)aila%le (or the lessee. *A-80:. PROCE=URE ON EJCUSE= PER>OREANCE. (1) I( the lessee re!ei)es 'oti(i!atio' o( a #aterial or i'&e(i'ite &ela$ or a' allo!atio' 6/sti(ie& /'&er Se!tio' *A8092 the lessee #a$ %$ 1ritte' 'oti(i!atio' to the lessor as to a'$ -oo&s i')ol)e&2 a'& 1ith res+e!t to all o( the -oo&s i( /'&er a' i'stall#e't lease !o'tra!t the )al/e o( the 1hole lease !o'tra!t is s/%sta'tiall$ i#+aire& (Se!tio' *A-910)0 (a) ter#i'ate the lease !o'tra!t (Se!tio' *A-909(*))4 or (%) e,!e+t i' a (i'a'!e lease that is 'ot a !o's/#er lease2 #o&i($ the lease !o'tra!t %$ a!!e+ti'- the a)aila%le 7/ota i' s/%stit/tio'2 1ith &/e allo1a'!e (ro# the re't +a$a%le (or the %ala'!e o( the lease ter# (or the &e(i!ie'!$ %/t 1itho/t (/rther ri-ht a-ai'st the lessor. (*) I(2 a(ter re!ei+t o( a 'oti(i!atio' (ro# the lessor /'&er Se!tio' *A-8092 the lessee (ails so to #o&i($ the lease a-ree#e't 1ithi' a reaso'a%le ti#e 'ot e,!ee&i'- .0 &a$s2 the lease !o'tra!t la+ses 1ith res+e!t to a'$ &eli)eries a((e!te&. *A-80;. IRREVOCA@LE PROEISES0 >INANCE LEASES. (1) I' the !ase o( a (i'a'!e lease that is 'ot a !o's/#er lease the lesseeBs +ro#ises /'&er the lease !o'tra!t %e!o#e irre)o!a%le a'& i'&e+e'&e't /+o' the lesseeBs a!!e+ta'!e o( the -oo&s. (*) A +ro#ise that has %e!o#e irre)o!a%le a'& i'&e+e'&e't /'&er s/%se!tio' (1)0 (a) is e((e!ti)e a'& e'(or!ea%le %et1ee' the +arties2 a'& %$ or a-ai'st thir& +arties i'!l/&i'- assi-'ees o( the +arties 4 a'& (%) is 'ot s/%6e!t to !a'!ellatio'2 ter#i'atio'2 #o&i(i!atio'2 re+/&iatio'2 e,!/se2 or s/%stit/tio' 1itho/t the !o'se't o( the +art$ to 1ho# the +ro#ise r/'s. (.) This se!tio' &oes 'ot a((e!t the )ali&it$ /'&er a'$ other la1 o( a !o)e'a't i' a'$ lease !o'tra!t #a5i'- the lesseeBs +ro#ises irre)o!a%le a'& i'&e+e'&e't /+o' the lesseeBs a!!e+ta'!e o( the -oo&s.

PART 9. =E>AULT A. IN GENERAL *A-901. =E>AULT0 PROCE=URE. (1) Chether the lessor or the lessee is i' &e(a/lt /'&er a lease !o'tra!t is &eter#i'e& %$ the lease a-ree#e't a'& this Arti!le. (*) I( the lessor or the lessee is i' &e(a/lt /'&er the lease !o'tra!t2 the +art$ see5i'- e'(or!e#e't has ri-hts a'& re#e&ies as +ro)i&e& i' this Arti!le a'&2 e,!e+t as li#ite& %$ this Arti!le2 as +ro)i&e& i' the lease a-ree#e't. (.) I( the lessor or the lessee is i' &e(a/lt /'&er the lease !o'tra!t2 the +art$ see5i'- e'(or!e#e't #a$ re&/!e the +art$Bs !lai# to 6/&-#e't2 or other1ise e'(or!e the lease !o'tra!t %$ sel(-hel+ or a'$ a)aila%le 6/&i!ial +ro!e&/re or 'o'6/&i!ial +ro!e&/re2 i'!l/&i'- ai'istrati)e +ro!ee&i'-2 ar%itratio'2 or the li5e2 i' a!!or&a'!e 1ith this Arti!le. (8) E,!e+t as other1ise +ro)i&e& i' Se!tio' 1-10:(1) or this Arti!le or the lease a-ree#e't2 the ri-hts a'& re#e&ies re(erre& to i' s/%se!tio's (*) a'& (.) are !/#/lati)e. (9) I( the lease a-ree#e't !o)ers %oth real +ro+ert$ a'& -oo&s2 the +art$ see5i'- e'(or!e#e't #a$ +ro!ee& /'&er this Part as to the -oo&s2 or /'&er other a++li!a%le la1 as to %oth the real +ro+ert$ a'& the -oo&s i' a!!or&a'!e 1ith that +art$Bs ri-hts a'& re#e&ies i' res+e!t o( the real +ro+ert$2 i' 1hi!h !ase this Part &oes 'ot a++l$. *A-90*. NOTICE A>TER =E>AULT. E,!e+t as other1ise +ro)i&e& i' this Arti!le or the lease a-ree#e't2 the lessor or lessee i' &e(a/lt /'&er the lease !o'tra!t is 'ot e'title& to 'oti!e o( &e(a/lt or 'oti!e o( e'(or!e#e't (ro# the other +art$ to the lease a-ree#e't. *A-90.. EO=I>ICATION OR IEPAIREENT O> RIGDTS AN= REEE=IES. (1) E,!e+t as other1ise +ro)i&e& i' this Arti!le2 the lease a-ree#e't #a$ i'!l/&e ri-hts a'& re#e&ies (or &e(a/lt i' a&&itio' to or i' s/%stit/tio' (or those +ro)i&e& i' this Arti!le a'& #a$ li#it or alter the #eas/re o( &a#a-es re!o)era%le /'&er this Arti!le. (*) Resort to a re#e&$ +ro)i&e& /'&er this Arti!le or i' the lease a-ree#e't is o+tio'al /'less the re#e&$ is e,+ressl$ a-ree& to %e e,!l/si)e. I( !ir!/#sta'!es !a/se a' e,!l/si)e or li#ite& re#e&$ to (ail o( its esse'tial +/r+ose2 or +ro)isio' (or a' e,!l/si)e re#e&$ is /'!o's!io'a%le2 re#e&$ #a$ %e ha& as +ro)i&e& i' this Arti!le. (.) Co'se7/e'tial &a#a-es #a$ %e li7/i&ate& /'&er Se!tio' *A-9082 or #a$ other1ise %e li#ite&2 altere&2 or e,!l/&e& /'less the li#itatio'2 alteratio'2 or e,!l/sio' is /'!o's!io'a%le. Li#itatio'2 alteratio'2 or e,!l/sio' o( !o'se7/e'tial &a#a-es (or i'6/r$ to the +erso' i' the !ase o( !o's/#er -oo&s is +ri#a (a!ie /'!o's!io'a%le %/t li#itatio'2 alteratio'2 or e,!l/sio' o( &a#a-es 1here the loss is !o##er!ial is 'ot +ri#a (a!ie /'!o's!io'a%le. (8) Ri-hts a'& re#e&ies o' &e(a/lt %$ the lessor or the lessee 1ith res+e!t to a'$ o%li-atio' or +ro#ise !ollateral or a'!illar$ to the lease !o'tra!t are 'ot i#+aire& %$ this Arti!le.

*A-908. LIKUI=ATION O> =AEAGES. (1) =a#a-es +a$a%le %$ either +art$ (or &e(a/lt2 or a'$ other a!t or o#issio'2 i'!l/&i'- i'&e#'it$ (or loss or &i#i'/tio' o( a'ti!i+ate& ta, %e'e(its or loss or &a#a-e to lessorBs resi&/al i'terest2 #a$ %e li7/i&ate& i' the lease a-ree#e't %/t o'l$ at a' a#o/'t or %$ a (or#/la that is reaso'a%le i' li-ht o( the the' a'ti!i+ate& har# !a/se& %$ the &e(a/lt or other a!t or o#issio'. (*) I( the lease a-ree#e't +ro)i&es (or li7/i&atio' o( &a#a-es2 a'& s/!h +ro)isio' &oes 'ot !o#+l$ 1ith s/%se!tio' (1)2 or s/!h +ro)isio' is a' e,!l/si)e or li#ite& re#e&$ that !ir!/#sta'!es !a/se to (ail o( its esse'tial +/r+ose2 re#e&$ #a$ %e ha& as +ro)i&e& i' this Arti!le. (.) I( the lessor 6/sti(ia%l$ 1ithhol&s or sto+s &eli)er$ o( -oo&s %e!a/se o( the lesseeBs &e(a/lt or i'sol)e'!$ (Se!tio' *A-9*9 or *A-9*:)2 the lessee is e'title& to restit/tio' o( a'$ a#o/'t %$ 1hi!h the s/# o( his or her" +a$#e'ts e,!ee&s0 (a) the a#o/'t to 1hi!h the lessor is e'title& %$ )irt/e o( ter#s li7/i&ati'- the lessorBs &a#a-es i' a!!or&a'!e 1ith s/%se!tio' (1)4 or (%) i' the a%se'!e o( those ter#s2 *0 +er!e't o( the the' +rese't )al/e o( the total re't the lessee 1as o%li-ate& to +a$ (or the %ala'!e o( the lease ter#2 or2 i' the !ase o( a !o's/#er lease2 the lesser o( s/!h a#o/'t or I900. (8) A lesseeBs ri-ht to restit/tio' /'&er s/%se!tio' (.) is s/%6e!t to o((set to the e,te't the lessor esta%lishes0 (a) a ri-ht to re!o)er &a#a-es /'&er the +ro)isio's o( this Arti!le other tha' s/%se!tio' (1)4 a'& (%) the a#o/'t or )al/e o( a'$ %e'e(its re!ei)e& %$ the lessee &ire!tl$ or i'&ire!tl$ %$ reaso' o( the lease !o'tra!t. *A-909. CANCELLATION AN= TEREINATION AN= E>>ECT O> CANCELLATION2 TEREINATION2 RESCISSION2 OR >RAU= ON RIGDTS AN= REEE=IES. (1) O' !a'!ellatio' o( the lease !o'tra!t2 all o%li-atio's that are still e,e!/tor$ o' %oth si&es are &is!har-e&2 %/t a'$ ri-ht %ase& o' +rior &e(a/lt or +er(or#a'!e s/r)i)es2 a'& the !a'!elli'- +art$ also retai's a'$ re#e&$ (or &e(a/lt o( the 1hole lease !o'tra!t or a'$ /'+er(or#e& %ala'!e. (*) O' ter#i'atio' o( the lease !o'tra!t2 all o%li-atio's that are still e,e!/tor$ o' %oth si&es are &is!har-e& %/t a'$ ri-ht %ase& o' +rior &e(a/lt or +er(or#a'!e s/r)i)es. (.) U'less the !o'trar$ i'te'tio' !learl$ a++ears2 e,+ressio's o( ?!a'!ellatio'2??res!issio'2? or the li5e o( the lease !o'tra!t #a$ 'ot %e !o'str/e& as a re'/'!iatio' or &is!har-e o( a'$ !lai# i' &a#a-es (or a' a'te!e&e't &e(a/lt. (8) Ri-hts a'& re#e&ies (or #aterial #isre+rese'tatio' or (ra/& i'!l/&e all ri-hts a'& re#e&ies a)aila%le /'&er this Arti!le (or &e(a/lt. (9) Neither res!issio' 'or a !lai# (or res!issio' o( the lease !o'tra!t 'or re6e!tio' or ret/r' o( the -oo&s #a$ %ar or %e &ee#e& i'!o'siste't 1ith a !lai# (or &a#a-es or other ri-ht or re#e&$.

*A-90:. STATUTE O> LIEITATIONS. (1) A' a!tio' (or &e(a/lt /'&er a lease !o'tra!t2 i'!l/&i'- %rea!h o( 1arra't$ or i'&e#'it$2 #/st %e !o##e'!e& 1ithi' 8 $ears a(ter the !a/se o( a!tio' a!!r/e&. @$ the ori-i'al lease !o'tra!t the +arties #a$ re&/!e the +erio& o( li#itatio' to 'ot less tha' o'e $ear. (*) A !a/se o( a!tio' (or &e(a/lt a!!r/es 1he' the a!t or o#issio' o' 1hi!h the &e(a/lt or %rea!h o( 1arra't$ is %ase& is or sho/l& ha)e %ee' &is!o)ere& %$ the a--rie)e& +art$2 or 1he' the &e(a/lt o!!/rs2 1hi!he)er is later. A !a/se o( a!tio' (or i'&e#'it$ a!!r/es 1he' the a!t or o#issio' o' 1hi!h the !lai# (or i'&e#'it$ is %ase& is or sho/l& ha)e %ee' &is!o)ere& %$ the i'&e#'i(ie& +art$2 1hi!he)er is later. (.) I( a' a!tio' !o##e'!e& 1ithi' the ti#e li#ite& %$ s/%se!tio' (1) is so ter#i'ate& as to lea)e a)aila%le a re#e&$ %$ a'other a!tio' (or the sa#e &e(a/lt or %rea!h o( 1arra't$ or i'&e#'it$2 the other a!tio' #a$ %e !o##e'!e& a(ter the e,+iratio' o( the ti#e li#ite& a'& 1ithi' : #o'ths a(ter the ter#i'atio' o( the (irst a!tio' /'less the ter#i'atio' res/lte& (ro# )ol/'tar$ &is!o'ti'/a'!e or (ro# &is#issal (or (ail/re or 'e-le!t to +rose!/te. (8) This se!tio' &oes 'ot alter the la1 o' tolli'- o( the stat/te o( li#itatio's 'or &oes it a++l$ to !a/ses o( a!tio' that ha)e a!!r/e& %e(ore this Arti!le %e!o#es e((e!ti)e. *A-90;. PROO> O> EARFET RENT0 TIEE AN= PLACE. (1) =a#a-es %ase& o' #ar5et re't (Se!tio' *A-91A or *A-9* IEPROPER TEN=ER OR =ELIVERG4 REPLACEEENT. (1) I( a'$ te'&er or &eli)er$ %$ the lessor or the s/++lier is re6e!te& %e!a/se 'o'!o'(or#i'- a'& the ti#e (or +er(or#a'!e has 'ot $et e,+ire&2 the lessor or the s/++lier #a$ seaso'a%l$ 'oti($ the lessee