554.13518 Cover — substitute goods. 1. After a default by a lessor under the lease contract of the type described in section 554.13508, subsection 1, or, if agreed, after other default by the lessor, the lessee may coverby making any purchase or lease of or contract to purchase or lease goods in substitution forthose due from the lessor. 2. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 554.13504) or otherwise determined pursuant to agreement of the parties (sections554.1302 and 554.13503), if a lessee’s cover is by a lease agreement substantially similar tothe original lease agreement and the new lease agreement is made in good faith and in acommercially reasonable manner, the lessee may recover from the lessor as damages thepresent 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 termwhich is comparable to the then remaining term of the original lease agreement minus thepresent value as of the same date of the total rent for the then remaining lease term of theoriginal lease agreement, and any incidental or hen remaining term of the original lease agreement minus thepresent value as of the same date of the total rent for the then remaining lease term of theoriginal lease agreement, and any incidental or consequential damages, less expenses savedin 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 fromthe lessor as if the lessee had elected not to cover and section 554.13519 governs. 94 Acts, ch 1052, §70; 2007 Acts, ch 41, §36; 2013 Acts, ch 30, §261Referred to in §554.13508, 554.13519 Sat Dec 23 11:03:36 2023 Iowa Code 2024, Section 554.13518 (25, 0)
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