§ 554.13527

554.13527 Lessor’s rights to dispose of goods. 1. After a default by a lessee under the lease contract of the type described in section 554.13523, subsection 1, or section 554.13523, subsection 3, paragraph 'a', or after thelessor refuses to deliver or takes possession of goods (section 554.13525 or 554.13526), or,if agreed, after other default by a lessee, the lessor may dispose of the goods concerned orthe undelivered balance thereof by lease, sale, or otherwise. 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 the disposition is by lease agreement substantially similar tothe original lease agreement and the new lease agreement is made in good faith and in acommercially reasonable manner, the lessor may recover from the lessee as damages accruedand unpaid rent as of the date of the commencement of the term of the new lease agreement;the present value, as of the same date, of the total rent for the remaining lease term of theoriginal lease agreement minus the present value, as of the same date, of the rent under thenew

agreement;the present value, as of the same date, of the total rent for the remaining lease term of theoriginal lease agreement minus the present value, as of the same date, of the rent under thenew lease agreement applicable to that period of the new lease term which is comparable tothe then remaining term of the original lease agreement; and any incidental damages allowedunder section 554.13530, 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 thelessee as if the lessor had elected not to dispose of the goods and section 554.13528 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 contractand any rights of the original lessee even though the lessor fails to comply with one or moreof the requirements of this Article. 5. The lessor is not accountable to the lessee for any profit made on any disposition.

the original lessee even though the lessor fails to comply with one or moreof 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 lessorfor any excess over the amount of the lessee’s security interest (section 554.13508, subsection5). 94 Acts, ch 1052, §79; 2007 Acts, ch 41, §38; 2013 Acts, ch 30, §156Referred to in §554.13304, 554.13508, 554.13523, 554.13524, 554.13525, 554.13528, 554.13529 Sat Dec 23 11:03:41 2023 Iowa Code 2024, Section 554.13527 (24, 0)