- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 12. Leases
- Section 401. Insecurity: Adequate Assurance of Performance.
previous: Section 311
. Priority Subject to Subordination.
next: Section 402
. Anticipatory Repudiation.
AS 45.12.401. Insecurity: Adequate Assurance of Performance.
- (a) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will
not be impaired.
- (b) 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 the insecure party has not already
received the agreed return.
- (c) 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 30 days after receipt of
a demand by the other party.
- (d) Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered must be
determined according to commercial standards.
- (e) Acceptance of nonconforming delivery or payment does not prejudice the aggrieved party's right to demand adequate
assurance of future performance.
All content © 2008 by Touch
N' Go/Bright Solutions, Inc.
Note to HTML Version:
This version of the Alaska Statutes is current through December, 2007. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature
If any errors are found, please e-mail Touch N' Go systems at E-mail. We
hope you find this information useful.