reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-506 Statute of limitations.

84-2a-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 article becomes effective.
History:
L. 1991, ch. 295, § 54; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-507 Proof of market rent: time and place.

84-2a-507.
Proof of market rent: time and place.
(1) Damages based on market rent (K.S.A. 84-2a-519 or 84-2a-528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times specified in K.S.A. 84-2a-519 and 84-2a-528.
(2) If evidence of rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times or places described in this article is not readily available, the rent prevailing within any reasonable time before or after the time described or at any other place or for a different lease term which in commercial judgment or under usage of trade would serve as a reasonable substitute for the one described may be used, making any proper allowance for the difference, including the cost of transporting the goods to or from the other place.
(3) Evidence of a relevant rent prevailing at a time or place or for a lease term other than the one described in this article offered by one party is not admissible unless and until such party has given the other party notice the court finds sufficient to prevent unfair surprise.
(4) If the prevailing rent or value of any goods regularly leased in any established market is in issue, reports in official publications or trade journals or in newspapers or periodicals of general circulation published as the reports of that market are admissible in evidence. The circumstances of the preparation of the report may be shown to affect its weight but not its admissibility.
History:
L. 1991, ch. 295, § 55; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-508 Lessee's remedies.

84-2a-508.
Lessee's remedies.
(1) If a lessor fails to deliver the goods in conformity to the lease contract (K.S.A. 84-2a-509) or repudiates the lease contract (K.S.A. 84-2a-402), or a lessee rightfully rejects the goods (K.S.A. 84-2a-509) or justifiably revokes acceptance of the goods (K.S.A. 84-2a-517), then with respect 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 (K.S.A. 84-2a-510), the lessor is in default under the lease contract and the lessee may:
(a) Cancel the lease contract (K.S.A. 84-2a-505(1));
(b) recover so much of the rent and security as has been paid and is just under the circumstances;
(c) cover and recover damages as to all goods affected whether or not they have been identified to the lease contract (K.S.A. 84-2a-518 and 84-2a-520), or recover damages for nondelivery (K.S.A. 84-2a-519 and 84-2a-520);
(d) exercise any other rights or pursue any other remedies provided in the lease contract.
(2) If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:
(a) If the goods have been identified, recover them (K.S.A. 84-2a-522); or
(b) in a proper case, obtain specific performance or replevy the goods (K.S.A. 84-2a-219) [84-2a-521].
(3) If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease, and in K.S.A. 84-2a-519(3).
(4) If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (K.S.A. 84-2a-519(4)).
(5) On rightful rejection or justifiable revocation of acceptance, a lessee has a security interest in goods in the lessee's possession or control for any rent and security that has been paid and any expenses reasonably incurred in their inspection, receipt, transportation, and care and custody and may hold those goods and dispose of them in good faith and in a commercially reasonable manner, subject to K.S.A. 84-2a-527(5).
(6) Subject to the provisions of K.S.A. 84-2a-407, a lessee, on notifying the lessor of the lessee's intention to do so, may deduct all or any part of the damages resulting from any default under the lease contract from any part of the rent still due under the same lease contract.
History:
L. 1991, ch. 295, § 56; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-509 Lessee's rights on improper delivery; rightful rejection.

84-2a-509.
Lessee's rights on improper delivery; rightful rejection.
(1) Subject to the provisions of K.S.A. 84-2a-510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform to the lease contract, the lessee may reject or accept the goods or accept any commercial unit or units and reject the rest of the goods.
(2) Rejection of goods is ineffective unless it is within a reasonable time after tender or delivery of the goods and the lessee seasonably notifies the lessor.
History:
L. 1991, ch. 295, § 57; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-510 Installment lease contracts: rejection and default.

84-2a-510.
Installment lease contracts: rejection and default.
(1) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within subsection (2) and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept that delivery.
(2) Whenever nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole there is a default with respect to the whole. But, the aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.
History:
L. 1991, ch. 295, § 58; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-511 Merchant lessee's duties as to rightfully rejected goods.

84-2a-511.
Merchant lessee's duties as to rightfully rejected goods.
(1) Subject to any security interest of a lessee (K.S.A. 84-2a-508(5)), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in such merchant lessee's possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.
(2) If a merchant lessee (subsection (1) or any other lessee (K.S.A. 84-2a-512) disposes of goods, such merchant lessee is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for reasonable expenses of caring for and disposing of the goods and, if the expenses include no disposition commission, to such commission as is usual in the trade, or if there is none, to a reasonable sum not exceeding 10% of the gross proceeds.
(3) In complying with this section or K.S.A. 84-2a-512, the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages.
(4) A purchaser who purchases in good faith from a lessee pursuant to this section or K.S.A. 84-2a-512 takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of this article.
History:
L. 1991, ch. 295, § 59; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-512 Lessee's duties as to rightfully rejected goods.

84-2a-512.
Lessee's duties as to rightfully rejected goods.
(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (K.S.A. 84-2a-511) and subject to any security interest of a lessee (K.S.A. 84-2a-508(5)):
(a) The lessee, after rejection of goods in the lessee's possession, shall hold them with reasonable care at the lessor's or supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;
(b) if the lessor or the supplier gives no instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in K.S.A. 84-2a-511; but
(c) the lessee has no further obligations with regard to goods rightfully rejected.
(2) Action by the lessee pursuant to subsection (1) is not acceptance or conversion.
History:
L. 1991, ch. 295, § 60; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-513 Cure by lessor of improper tender or delivery; replacement.

84-2a-513.
Cure by lessor of improper tender or delivery; replacement.
(1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a conforming delivery within the time provided in the lease contract.
(2) If the lessee rejects a nonconforming tender that the lessor or the supplier had reasonable grounds to believe would be acceptable with or without money allowance, the lessor or the supplier may have a further reasonable time to substitute a conforming tender if such lessor supplier seasonably notifies the lessee.
History:
L. 1991, ch. 295, § 61; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-514 Waiver of lessee's obligations.

84-2a-514.
Waiver of lessee's obligations.
(1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:
(a) If, stated seasonably, the lessor or the supplier could have cured it (K.S.A. 84-2a-513, and amendments thereto); or
(b) between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.
(2) A lessee's failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.
History:
L. 1991, ch. 295, § 62; L. 2007, ch. 90, § 60; July 1, 2008.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-515 Acceptance of goods.

84-2a-515.
Acceptance of goods.
(1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods; and
(a) the lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will take or retain them in spite of their nonconformity; or
(b) the lessee fails to make an effective rejection of the goods (K.S.A. 84-2a-509(2)).
(2) Acceptance of a part of any commercial unit is acceptance of that entire unit.
History:
L. 1991, ch. 295, § 63; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-516 Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over.

84-2a-516.
Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over.
(1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered.
(2) A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by this article or the lease agreement for nonconformity.
(3) If a tender has been accepted:
(a) Within a reasonable time after the lessee discovers or should have discovered any default, the lessee shall notify the lessor and the supplier, if any, or be barred from any remedy against the party not notified;
(b) except in the case of a consumer lease, within a reasonable time after the lessee receives notice of litigation for infringement or the like (K.S.A. 84-2a-211) the lessee shall notify the lessor or be barred from any remedy over for liability established by the litigation; and
(c) the burden is on the lessee to establish any default.
(4) If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:
(a) The lessee may give the lessor or the supplier, or both, written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the two litigations, then unless the person notified after seasonable receipt of the notice does come in and defend that person is so bound.
(b) The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (K.S.A. 84-2a-211) or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then unless the lessee after seasonable receipt of the demand does turn over control the lessee is so barred.
(5) Subsections (3) and (4) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (K.S.A. 84-2a-211).
History:
L. 1991, ch. 295, § 64; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-517 Revocation of acceptance of goods.

84-2a-517.
Revocation of acceptance of goods.
(1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it:
(a) Except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or
(b) without discovery of the nonconformity if the lessee's acceptance was reasonably induced either by the lessor's assurance or, except in the case of a finance lease, by the difficulty of discovery before acceptance.
(2) Except in the case of a finance lease that is not a consumer lease, a lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee.
(3) If the lease agreement so provides, the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor.
(4) Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor.
(5) A lessee who so revokes has the same rights and duties with regard to the goods involved as if the lessee had rejected them.
History:
L. 1991, ch. 295, § 65; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-518 Cover; substitute goods.

84-2a-518.
Cover; substitute goods.
(1) After default by a lessor under the lease contract of the type described in K.S.A. 84-2a-508(1), and amendments thereto, or if agreed, after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or lease goods in substitution for those due from the lessor.
(2) Except as otherwise provided with respect to damages liquidated in the lease agreement (K.S.A. 84-2a-504, and amendments thereto) or otherwise determined pursuant to agreement of the parties (K.S.A. 2023 Supp. 84-1-302 and K.S.A. 84-2a-503, and amendments thereto), if a lessee's cover is by a lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessee may recover from the lessor as damages (a) the present value, as of the date of the commencement of the term of the new lease agreement, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement minus the present value as of the same date of the total rent for the then remaining lease term of the original lease agreement; and (b) any incidental or consequential damages, less expenses saved in consequence of the lessor's default.
(3) If a lessee's cover is by lease agreement that for any reason does not qualify for treatment under subsection (2), or is by purchase or otherwise, the lessee may recover from the lessor as if the lessee had elected not to cover and K.S.A. 84-2a-519, and amendments thereto, governs.
History:
L. 1991, ch. 295, § 66; L. 2007, ch. 89, § 37; July 1, 2008.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-519 Lessee's damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods.

84-2a-519. Lessee's damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods.
(1) Except as otherwise provided with respect to damages liquidated in the lease agreement (K.S.A. 84-2a-504, and amendments thereto) or otherwise determined pursuant to agreement of the parties (K.S.A. 2023 Supp. 84-1-302 and K.S.A. 84-2a-504, and amendments thereto), if a lessee elects not to cover or a lessee elects to cover and the cover is by lease agreement that for any reason does not qualify for treatment under K.S.A. 84-2a-518(2), and amendments thereto, or is by purchase or otherwise, the measure of damages for nondelivery or repudiation by the lessor or for rejection or revocation of acceptance by the lessee is the present value, as of the date of the default of the then market rent minus the present value as of the same date of the original rent, computed for the remaining lease term of the original lease agreement, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
(2) Market rent is to be determined as of the place for tender or, in cases of rejection after arrival or revocation of acceptance, as of the place of arrival.
(3) Except as otherwise agreed, if the lessee has accepted goods and given notification (K.S.A. 84-2a-516(3), and amendments thereto), the measure of damages for nonconforming tender or delivery or other default by a lessor is the loss resulting in the ordinary course of events from the lessor's default as determined in any manner that is reasonable together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
(4) Except as otherwise agreed, the measure of damages for breach of warranty is the present value at the time and place of acceptance of the difference between the value of the use of the goods accepted and the value if they had been as warranted for the lease term, unless special circumstances show proximate damages of a different amount, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default or breach of warranty.
History:
L. 1991, ch. 295, § 67; L. 2007, ch. 89, § 38; July 1, 2008.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-520 Lessee's incidental and consequential damages.

84-2a-520.
Lessee's incidental and consequential damages.
(1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
(2) Consequential damages resulting from a lessor's default include:
(a) Any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b) injury to person or property proximately resulting from any breach of warranty.
History:
L. 1991, ch. 295, § 68; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-521 Lessee's right to specific performance or replevin.

84-2a-521.
Lessee's right to specific performance or replevin.
(1) Specific performance may be decreed if the goods are unique or in other proper circumstances.
(2) A decree for specific performance may include any terms and conditions as to payment of the rent, damages or other relief that the court deems just.
(3) A lessee has a right of replevin, detinue, sequestration, claim and delivery, or the like for goods identified to the lease contract if after reasonable effort the lessee is unable to effect cover for those goods or the circumstances reasonably indicate that the effort will be unavailing.
History:
L. 1991, ch. 295, § 69; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-522 Lessee's right to goods on lessor's insolvency.

84-2a-522.
Lessee's right to goods on lessor's insolvency.
(1) Subject to subsection (2) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (K.S.A. 84-2a-217) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within 10 days after receipt of the first installment of rent and security.
(2) A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.
History:
L. 1991, ch. 295, § 70; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-523 Lessor's remedies.

84-2a-523.
Lessor's remedies.
(1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (K.S.A. 84-2a-510), the lessee is in default under the lease contract and the lessor may:
(a) Cancel the lease contract (K.S.A. 84-2a-505(1));
(b) proceed respecting goods not identified to the lease contract (K.S.A. 84-2a-524);
(c) withhold delivery of the goods and take possession of goods previously delivered (K.S.A. 84-2a-525);
(d) stop delivery of the goods by any bailee (K.S.A. 84-2a-526);
(e) dispose of the goods and recover damages (K.S.A. 84-2a-527), or retain the goods and recover damages (K.S.A. 84-2a-528), or in a proper case recover rent (K.S.A. 84-2a-529).
(f) exercise any other rights or pursue any other remedies provided in the lease contract.
(2) If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled under subsection (1), the lessor may recover the loss resulting in the ordinary course of events from the lessee's default as determined in any reasonable manner, together with incidental damages, less expenses saved in consequence of the lessee's default.
(3) If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease. In addition, unless otherwise provided in the lease contract:
(a) If the default substantially impairs the value of the lease contract to the lessor, the lessor may exercise the rights and pursue the remedies provided in subsection (1) or (2); or
(b) if the default does not substantially impair the value of the lease contract to the lessor, the lessor may recover as provided in subsection (2).
History:
L. 1991, ch. 295, § 71; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-524 Lessor's right to identify goods to lease contract.

84-2a-524.
Lessor's right to identify goods to lease contract.
(1) After default by the lessee under the lease contract of the type described in subsection (1) or (3)(a) of K.S.A. 84-2a-523 or, if agreed, after other default by the lessee, the lessor may:
(a) Identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor's or the supplier's possession or control; and
(b) dispose of goods (K.S.A. 84-2a-527(1)) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
(2) If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease, sell, or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
History:
L. 1991, ch. 295, § 72; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-525 Lessor's right to possession of goods.

84-2a-525.
Lessor's right to possession of goods.
(1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods.
(2) After a default by the lessee under the lease contract of the type described in K.S.A. 84-2a-523(1) or (3)(a) or, if agreed, after other default by the lessee, the lessor has the right to take possession of the goods. If the lease contract so provides, the lessor may require the lessee to assemble the goods and make them available to the lessor at a place to be designated by the lessor which is reasonably convenient to both parties. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee's premises (K.S.A. 84-2a-527.)
(3) The lessor may proceed under subsection (2) without judicial process if it can be done without breach of the peace or the lessor may proceed by action.
History:
L. 1991, ch. 295, § 73; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-526 Lessor's stoppage of delivery in transit or otherwise.

84-2a-526.
Lessor's stoppage of delivery in transit or otherwise.
(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
(2) In pursuing its remedies under subsection (1), the lessor may stop delivery until
(a) receipt of the goods by the lessee;
(b) acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(c) such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3) (a) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(b) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(c) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
History:
L. 1991, ch. 295, § 74; L. 2007, ch. 90, § 61; July 1, 2008.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-527 Lessor's rights to dispose of goods.

84-2a-527.
Lessor's rights to dispose of goods.
(1) After a default by a lessee under the lease contract of a type described in K.S.A. 84-2a-523(1) or (3)(a), and amendments thereto, or after the lessor refuses to deliver or takes possession of goods (K.S.A. 84-2a-525 or 84-2a-526, and amendments thereto), or, if agreed, after other default by a lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale or otherwise.
(2) Except as otherwise provided with respect to damages liquidated in the lease agreement (K.S.A. 84-2a-504, and amendments thereto) or otherwise determined pursuant to agreement of the parties (K.S.A. 2023 Supp. 84-1-302 and K.S.A. 84-2a-503, and amendments thereto), if the disposition is by lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages (a) accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement, (b) the present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus present value, as of the same date, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement, and (c) any incidental damages allowed under K.S.A. 84-2a-530, and amendments thereto, less expenses saved in consequence of the lessee's default.
(3) If the lessor's disposition is by lease agreement that for any reason does not qualify for treatment under subsection (2), or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and K.S.A. 84-2a-528, and amendments thereto, governs.
(4) A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this article.
(5) The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessee's security interest (K.S.A. 84-2a-508(5), and amendments thereto).
History:
L. 1991, ch. 295, § 75; L. 2007, ch. 89, § 39; July 1, 2008.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-528 Lessor's damages for non-acceptance, failure to pay, repudiation or other default.

84-2a-528.
Lessor's damages for non-acceptance, failure to pay, repudiation or other default.
(1) Except as otherwise provided with respect to damages liquidated in the lease agreement (K.S.A. 84-2a-504, and amendments thereto) or otherwise determined pursuant to agreement of the parties (K.S.A. 2023 Supp. 84-1-302 and K.S.A. 84-2a-503, and amendments thereto), if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under K.S.A. 84-2a-527(2), and amendments thereto, or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in K.S.A. 84-2a-523(1) or (3)(a), and amendments thereto, or, if agreed, for other default of the lessee, (a) accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of goods to the lessor, (b) the present value as of the date determined under clause (a) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term, and (c) any incidental damages allowed under K.S.A. 84-2a-530, and amendments thereto, less expenses saved in consequence of the lessee's default.
(2) If the measure of damages provided in subsection (1) is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, the lessor would have made from full performance by the lessee, together with any incidental damages allowed under K.S.A. 84-2a-530, and amendments thereto, due allowance for costs reasonably incurred and due credit for payment or proceeds of disposition.
History:
L. 1991, ch. 295, § 76; L. 2007, ch. 89, § 40; July 1, 2008.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-529 Lessor's action for the rent.

84-2a-529.
Lessor's action for the rent.
(1) After default by the lessee under the lease contract of the type described in K.S.A. 84-2a-523(1) or (3)(a), or, if agreed, after other default by the lessee, if the lessor complies with subsection (2), the lessor may recover from the lessee as damages:
(a) For goods accepted by the lessee and not repossessed by or tendered to the lessor, and for conforming goods lost or damaged within a commercially reasonable time after risk of loss passes to the lessee (K.S.A. 84-2a-219), (i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, (ii) the present value as of the same date of the rent for the then remaining lease term of the lease agreement, and (iii) any incidental damages allowed under K.S.A. 84-2a-530, less expenses saved in consequence of the lessee's default; and
(b) for goods identified to the lease contract if the lessor is unable after reasonable effort to dispose of them at a reasonable price or the circumstances reasonably indicate that effort will be unavailing, (i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, (ii) the present value as of the same date of the rent for the then remaining lease term of the lease agreement, and (iii) any incidental damages allowed under K.S.A. 84-2a-530, less expenses saved in consequence of the lessee's default.
(2) Except as provided in subsection (3), the lessor shall hold for the lessee for the remaining lease term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
(3) The lessor may dispose of the goods at any time before collection of the judgment for damages obtained pursuant to subsection (1). If the disposition is before the end of the remaining lease term of the lease agreement, the lessor's recovery against the lessee for damages is governed by K.S.A. 84-2a-527 or 84-2a-528, and the lessor will cause an appropriate credit to be provided against a judgment for damages to the extent that the amount of the judgment exceeds the recovery available pursuant to K.S.A. 84-2a-527 or 84-2a-528.
(4) Payment of the judgment for damages obtained pursuant to subsection (1) entitles the lessee to use and possession of the goods not then disposed of for the remaining lease term of and in accordance with the lease agreement.
(5) After default by the lessee under the lease contract of the type described in subsection (1) or (3)(a) of K.S.A. 84-2a-523 or, if agreed, after other default by the lessee, a lessor who is held not entitled to rent under this section must nevertheless by awarded damages for nonacceptance under K.S.A. 84-2a-527 and 84-2a-528.
History:
L. 1991, ch. 295, § 77; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-530 Lessor's incidental damages.

84-2a-530.
Lessor's incidental damages.
Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the lessee's default, in connection with return or disposition of the goods, or otherwise resulting from the default.
History:
L. 1991, ch. 295, § 78; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-531 Standing to sue third parties for injury to goods.

84-2a-531.
Standing to sue third parties for injury to goods.
(1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (a) the lessor has a right of action against the third party, and (b) the lessee also has a right of action against the third party if the lessee:
(i) Has a security interest in the goods;
(ii) has an insurable interest in the goods; or
(iii) bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
(2) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, such party plaintiff's suit or settlement, subject to such party plaintiff's own interest, is as a fiduciary for the other party to the lease contract.
(3) Either party with the consent of the other may sue for the benefit of whom it may concern.
History:
L. 1991, ch. 295, § 79; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 2a - Leases › 84-2a-532 Lessor's rights to residual interest.

84-2a-532.
Lessor's rights to residual interest.
In addition to any other recovery permitted by this article or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.
History:
L. 1991, ch. 295, § 80; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 3 - Negotiable Instruments › 84-3-102 Subject matter.

84-3-102.
Subject matter.
(a) This article applies to negotiable instruments. It does not apply to money, to payment orders governed by article 4a, or to securities governed by article 8.
(b) If there is conflict between this article and article 4 or 9, articles 4 and 9 govern.
(c) Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this article to the extent of the inconsistency.
History:
L. 1991, ch. 296, § 2; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 3 - Negotiable Instruments › 84-3-105 Issue of instrument.

84-3-105.
Issue of instrument.
(a) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person.
(b) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.
(c) "Issuer" applies to issued and unissued instruments and means a maker or drawer of an instrument.
History:
L. 1991, ch. 296, § 5; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 3 - Negotiable Instruments › 84-3-106 Unconditional promise or order.

84-3-106.
Unconditional promise or order.
(a) Except as provided in this section, for the purposes of K.S.A. 84-3-104(a), a promise or order is unconditional unless it states (1) an express condition to payment, (2) that the promise or order is subject to or governed by another writing, or (3) that rights or obligations with respect to the promise or order are stated in another writing. A reference to another writing does not of itself make the promise or order conditional.
(b) A promise or order is not made conditional (1) by a reference to another writing for a statement of rights with respect to collateral, prepayment, or acceleration, or (2) because payment is limited to resort to a particular fund or source.
(c) If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not make the promise or order conditional for the purposes of K.S.A. 84-3-104(a). If the person whose specimen signature appears on an instrument fails to countersign the instrument, the failure to countersign is a defense to the obligation of the issuer, but the failure does not prevent a transferee of the instrument from becoming a holder of the instrument.
(d) If a promise or order at the time it is issued or first comes into possession of a holder contains a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee, the promise or order is not thereby made conditional for the purposes of K.S.A. 84-3-104(a); but if the promise or order is an instrument, there cannot be a holder in due course of the instrument.
History:
L. 1991, ch. 296, § 6; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 3 - Negotiable Instruments › 84-3-107 Instrument payable in foreign money.

84-3-107.
Instrument payable in foreign money.
Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.
History:
L. 1991, ch. 296, § 7; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 3 - Negotiable Instruments › 84-3-108 Payable on demand or at a definite time.

84-3-108.
Payable on demand or at a definite time.
(a) A promise or order is "payable on demand" if it (1) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or (2) does not state any time of payment.
(b) A promise or order is "payable at a definite time" if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to rights of (1) prepayment, (2) acceleration, (3) extension at the option of the holder, or (4) extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.
(c) If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument is payable on demand until the fixed date and, if demand for payment is not made before that date, becomes payable at a definite time on the fixed date.
History:
L. 1991, ch. 296, § 8; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 3 - Negotiable Instruments › 84-3-109 Payable to bearer or to order.

84-3-109.
Payable to bearer or to order.
(a) A promise or order is payable to bearer if it:
(1) States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment;
(2) does not state a payee; or
(3) states that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.
(b) A promise or order that is not payable to bearer is payable to order if it is payable (1) to the order of an identified person or (2) to an identified person or order. A promise or order that is payable to order is payable to the identified person.
(c) An instrument payable to bearer may become payable to an identified person if it is specially endorsed pursuant to K.S.A. 84-3-205(a). An instrument payable to an identified person may become payable to bearer if it is endorsed in blank pursuant to K.S.A. 84-3-205(b).
History:
L. 1991, ch. 296, § 9; February 1, 1992.
2023 Kansas Statutes › Chapter 84 - Uniform Commercial Code › Article 3 - Negotiable Instruments › 84-3-111 Place of payment.

84-3-111.
Place of payment.
Except as otherwise provided for items in article 4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.
History:
L. 1991, ch. 296, § 11; February 1, 1992.