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U.C.C. - ARTICLE 1 - GENERAL PROVISIONS PART 1. GENERAL PROVISIONS § 1-101. Short Titles. (a) This [Act] may be cited as the Uniform Commercial Code. (b) This article may be cited as Uniform Commercial Code-General Provisions. § 1-102. Scope of Article. This article applies to a transaction to the extent that it is governed by another article of [the Uniform Commercial Code]. § 1-103. Construction of [Uniform Commercial Code] to Promote its Purposes and Policies: Applicability of Supplemental Principles of Law. (a) [The Uniform Commercial Code] must be liberally construed and applied to promote its underlying purposes and policies, which are: (1) to simplify, clarify, and modernize the law governing commercial transactions; (2) to permit the continued expansion of commercial practices through custom, usage, and agreement of the parties; and (3) to make uniform the law among the various jurisdictions. (b) Unless displaced by the particular provisions of [the Uniform Commercial Code], the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, and other validating or invalidating cause supplement its provisions. § 1-104. Construction Against Implied Repeal. [The Uniform Commercial Code] being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided. § 1-105. Severability.
Transcript

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


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UCC Article 9 for Filing Officers Course 201 · 2018. 10. 23. · UCC Article 9 Background •Role of the Filing System –Because Article 9 allows parties to adjust other creditors’

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