Thursday, 08 April 2010 15:41
Lessee Defaults in PaymentWritten by Rizwan Butt
If lessee shall default in the payment of any of the rental payments due under this lease, or if lessee fails to perform any covenant, condition or obligation required to be performed by lessee under this lease agreement, or if lessee becomes insolvent, ceases to do business as a going concern, makes an assignment for the benefits of creditors, or if a petition for a receiver or under the Bankruptcy Act is filed by or against the lessee, lessor may declare the entire amount of rental payments accrued and to accrue over the term of this lease (less a discount of _____%) immediately due and payable. If the sum is not paid on demand, lessor shall have the right to take possession of the equipment and dispose of it in a commercially reasonable manner upon written notice to lessee or any intended disposition which will be deemed reasonably and properly given if mailed at least 10 days before such disposition, postage prepaid, to lessee at the address shown above. The rights and remedies contained in this lease agreement are cumulative and alternative and, in addition, lessor shall have all the rights and remedies granted by the Uniform Commercial Code or any other applicable law. Upon any such default, lessee, to the extent permitted by law, agrees to pay all costs of collection and enforcement of lessor's rights under this lease agreement, including the reasonable fees of an attorney who is not a salaried officer or employee of the lessor or its assigns. Waiver by lessor of any default shall not be a waiver of any other default.
Published in Bankruptcy