reglab/housing_qa huggingface dataset:
SC Code § 36-2A-307 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-307. Priority of liens arising by attachment or levy on, security interests in, and other claims to goods.

 (1) Except as otherwise provided in Section 36-2A-306, a creditor of a lessee takes subject to the lease contract.  (2) Except as otherwise provided in subsections (3) and (4) and in Sections 36-2A-306 and 36-2A-308, a creditor of a lessor takes subject to the lease contract unless:  (a) the creditor holds a lien that attached to the goods before the lease contract became enforceable,  (b) the creditor holds a security interest in the goods and the lessee did not give value and receive delivery of the goods without knowledge of the security interest; or  (c) the creditor holds a security interest in the goods which was perfected (Section 36-9-303) before the lease contract became enforceable.  (3) A lessee in the ordinary course of business takes the leasehold interest free of a security interest in the goods created by the lessor even though the security interest is perfected (Section 36-9-303) and the lessee knows of its existence.  (4) A lessee other than a lessee in the ordinary course of business takes the leasehold interest free of a security interest to the extent that it secures future advances made after the secured party acquires knowledge of the lease or more than forty-five days after the lease contract becomes enforceable, whichever first occurs, unless the future advances are made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the forty-five-day period.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-308 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-308. Special rights of creditors.

 (1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudulent under any statute or rule of law, but retention of possession in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract becomes enforceable is not fraudulent.  (2) Nothing in this chapter impairs the rights of creditors of a lessor if the lease contract (a) becomes enforceable, not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security, or the like, and (b) is made under circumstances which under any statute or rule of law apart from this chapter would constitute the transaction a fraudulent transfer or voidable preference.  (3) A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor retention of possession by the seller is fraudulent under any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-310 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-310. Lessor ' s and lessee ' s rights when goods become accessions.

 (1) Goods are "accessions" when they are installed in or affixed to other goods.  (2) The interest of a lessor or a lessee under a lease contract entered into before the goods became accessions is superior to all interests in the whole except as stated in subsection (4).  (3) The interest of a lessor or a lessee under a lease contract entered into at the time or after the goods became accessions is superior to all subsequently acquired interests in the whole except as stated in subsection (4) but is subordinate to interests in the whole existing at the time the lease contract was made unless the holders of such interests in the whole have in writing consented to the lease or disclaimed an interest in the goods as part of the whole.  (4) The interest of a lessor or a lessee under a lease contract described in subsection (2) or (3) is subordinate to the interest of  (a) a buyer in the ordinary course of business or a lessee in the ordinary course of business of any interest in the whole acquired after the goods became accessions; or  (b) a creditor with a security interest in the whole perfected before the lease contract was made to the extent that the creditor makes subsequent advances without knowledge of the lease contract.  (5) When under subsections (2) or (3) and (4) a lessor or a lessee of accessions holds an interest that is superior to all interests in the whole, the lessor or the lessee may (a) on default, expiration, termination, or cancellation of the lease contract by the other party but subject to the provisions of the lease contract and this chapter, or (b) if necessary to enforce his other rights and remedies under this chapter, remove the goods from the whole, free and clear of all interests in the whole, but he must reimburse any holder of an interest in the whole who is not the lessee and who has not otherwise agreed for the cost of repair of any physical injury but not for any diminution in value of the whole caused by the absence of the goods removed or by any necessity for replacing them. A person entitled to reimbursement may refuse permission to remove until the party seeking removal gives adequate security for the performance of this obligation.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-311 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-311. Priority subject to subordination.

 Nothing in this chapter prevents subordination by agreement by any person entitled to priority.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-401 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-401. Insecurity: adequate assurance of performance.

 (1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired.  (2) If reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequate assurance of due performance. Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which he has not already received the agreed return.  (3) A repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party within a reasonable time, not to exceed thirty days after receipt of a demand by the other party.  (4) Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered must be determined according to commercial standards.  (5) Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-402 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-402. Anticipatory repudiation.

 If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease contract to the other, the aggrieved party may:  (a) for a commercially reasonable time, await retraction of repudiation and performance by the repudiating party;  (b) make demand pursuant to Section 36-2A-401 and await assurance of future performance adequate under the circumstances of the particular case; or  (c) resort to any right or remedy upon default under the lease contract or this chapter, even though the aggrieved party has notified the repudiating party that the aggrieved party would await the repudiating party's performance and assurance and has urged retraction. In addition, whether or not the aggrieved party is pursuing one of the foregoing remedies, the aggrieved party may suspend performance or, if the aggrieved party is the lessor, proceed in accordance with the provisions of this chapter on the lessor's right to identify goods to the lease contract notwithstanding default or to salvage unfinished goods (Section 36-2A-524).  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-403 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-403. Retraction of anticipatory repudiation.

 (1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has canceled the lease contract or materially changed the aggrieved party's position or otherwise indicated that the aggrieved party considers the repudiation final.  (2) Retraction may be by any method that clearly indicates to the aggrieved party that the repudiating party intends to perform under the lease contract and includes any assurance demanded under Section 36-2A-401.  (3) Retraction reinstates a repudiating party's rights under a lease contract with due excuse and allowance to the aggrieved party for any delay occasioned by the repudiation.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-404 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-404. Substituted performance.

 (1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable, but a commercially reasonable substitute is available, the substitute performance must be tendered and accepted.  (2) If the agreed means or manner of payment fails because of domestic or foreign governmental regulation:  (a) the lessor may withhold or stop delivery or cause the supplier to withhold or stop delivery unless the lessee provides a means or manner of payment that is commercially a substantial equivalent; and  (b) if delivery has already been taken, payment by the means or in the manner provided by the regulation discharges the lessee's obligation unless the regulation is discriminatory, oppressive, or predatory.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-405 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-405. Excused performance.

 Subject to Section 36-2A-404 on substituted performance, the following rules apply:  (a) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with subsections (b) and (c) is not a default under the lease contract if performance as agreed has been made impracticable by the occurrence of a contingency the nonoccurrence of which was a basic assumption on which the lease contract was made or by compliance in good faith with any applicable foreign or domestic governmental regulation or order, whether or not the regulation or order later proves to be invalid.  (b) If the causes mentioned in subsection (a) affect only part of the lessor's or the supplier's capacity to perform, he shall allocate production and deliveries among his customers but at his option may include regular customers not then under contract for sale or lease as well as his own requirements for further manufacture. He may so allocate in any manner that is fair and reasonable.  (c) The lessor seasonably shall notify the lessee and in the case of a finance lease the supplier seasonably shall notify the lessor and the lessee, if known, that there will be delay or nondelivery and, if allocation is required under subsection (b), of the estimated quota thus made available for the lessee.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-406 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-406. Procedure on excused performance.

 (1) If the lessee receives notification of a material or indefinite delay or an allocation justified under Section 36-2A-405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (Section 36-2A-510):  (a) terminate the lease contract (Section 36-2A-505(2)); or  (b) except in a finance lease that is not a consumer lease, modify the lease contract by accepting the available quota in substitution, with due allowance from the rent payable for the balance of the lease term for the deficiency but without further right against the lessor.  (2) If, after receipt of a notification from the lessor under Section 36-2A-405, the lessee fails so to modify the lease agreement within a reasonable time not exceeding thirty days, the lease contract lapses with respect to any deliveries affected.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-407 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-407. Irrevocable promises: finance leases.

 (1) In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods.  (2) A promise that has become irrevocable and independent under subsection (1):  (a) is effective and enforceable between the parties, and by or against third parties including assignees of the parties; and  (b) is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.  (3) This section does not affect the validity under any other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's acceptance of the goods.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-501 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-501. Default: procedure.

 (1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this chapter.  (2) If the lessor or the lessee is in default under the lease contract, the party seeking enforcement has rights and remedies as provided in this chapter and, except as limited by this chapter, as provided in the lease agreement.  (3) If the lessor or the lessee is in default under the lease contract, the party seeking enforcement may reduce the party's claim to judgment, or otherwise enforce the lease contract by self-help or any available judicial procedure or nonjudicial procedure, including administrative proceeding, arbitration, or the like, in accordance with this chapter.  (4) Except as otherwise provided in Section 36-1-305(a) or this chapter or the lease agreement, the rights and remedies referred to in subsections (2) and (3) are cumulative.  (5) If the lease agreement covers both real property and goods, the party seeking enforcement may proceed under this Part as to the goods, or under other applicable law as to both the real property and the goods in accordance with that party's rights and remedies in respect of the real property, in which case this Part does not apply.  HISTORY: 2001 Act No. 67, Section 2; 2014 Act No. 213 (S.343), Section 18, eff October 1, 2014.  Editor's Note  2014 Act No. 213, Section 51, provides as follows:  "SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."  Effect of Amendment  2014 Act No. 213, Section 18, in subsection (4), substituted "36-1-305(a)" for "36-1-106(1)".
SC Code § 36-2A-502 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-502. Notice after default.

 Except as otherwise provided in this chapter or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the other party to the lease agreement.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-503 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-503. Modification or impairment of rights and remedies.

 (1) Except as otherwise provided in this chapter, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this chapter and may limit or alter the measure of damages recoverable under this chapter.  (2) Resort to a remedy provided under this chapter or in the lease agreement is optional unless the remedy is expressly agreed to be exclusive. If circumstances cause an exclusive or limited remedy to fail of its essential purpose, or provision for an exclusive remedy is unconscionable, a remedy may be had as provided in this chapter.  (3) Consequential damages may be liquidated under Section 36-2A-504, or may otherwise be limited, altered, or excluded unless the limitation, alteration, or exclusion is unconscionable. Limitation, alteration, or exclusion of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation, alteration, or exclusion of damages where the loss is commercial is not prima facie unconscionable.  (4) Rights and remedies on default by the lessor or the lessee with respect to any obligation or promise collateral or ancillary to the lease contract are not impaired by this chapter.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-504 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-504. Liquidation of damages.

 (1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interest, may be liquidated in the lease agreement but only at an amount or by a formula that is reasonable in light of the then anticipated harm caused by the default or other act or omission.  (2) If the lease agreement provides for liquidation of damages, and such provision does not comply with subsection (1), or such provision is an exclusive or limited remedy that circumstances cause to fail of its essential purpose, a remedy may be had as provided in this chapter.  (3) If the lessor justifiably withholds or stops delivery of goods because of the lessee's default or insolvency (Section 36-2A-525 or 36-2A-526), the lessee is entitled to restitution of any amount by which the sum of his payments exceeds:  (a) the amount to which the lessor is entitled by virtue of terms liquidating the lessor's damages in accordance with subsection (1); or  (b) in the absence of those terms, twenty percent of the then present value of the total rent the lessee was obligated to pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of such amount or five hundred dollars.  (4) A lessee's right to restitution under subsection (3) is subject to offset to the extent the lessor establishes:  (a) a right to recover damages under the provisions of this chapter other than subsection (1); and  (b) the amount or value of any benefits received by the lessee directly or indirectly by reason of the lease contract.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-505 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-505. Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies.

 (1) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default or performance survives, and the canceling party also retains any remedy for default of the whole lease contract or any unperformed balance.  (2) On termination of the lease contract, all obligations that are still executory on both sides are discharged but any right based on prior default or performance survives.  (3) Unless the contrary intention clearly appears, expressions of 'cancellation', 'rescission', or the like of the lease contract may not be construed as a renunciation or discharge of any claim in damages for an antecedent default.  (4) Rights and remedies for material misrepresentation or fraud include all rights and remedies available under this chapter for default.  (5) Neither rescission nor a claim for rescission of the lease contract nor rejection or return of the goods may bar or be deemed inconsistent with a claim for damages or other right or remedy.  HISTORY: 2001 Act No. 67, Section 2.
SC Code § 36-2A-506 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 2A - Commercial Code - Leases|Section 36-2A-506. Statute of limitations.

 (1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause of action accrued. By the original lease contract the parties may reduce the period of limitation to not less than one year.  (2) A cause of action for default accrues when the act or omission on which the default or breach of warranty is based is or should have been discovered by the aggrieved party, or when the default occurs, whichever is later. A cause of action for indemnity accrues when the act or omission on which the claim for indemnity is based is or should have been discovered by the indemnified party, whichever is later.  (3) If an action commenced within the time limited by subsection (1) is so terminated as to leave available a remedy by another action for the same default or breach of warranty or indemnity, the other action may be commenced after the expiration of the time limited and within six months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.  (4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action that have accrued before this chapter becomes effective.  HISTORY: 2001 Act No. 67, Section 2.