New Jersey § 12a:2a-527

§ 12a:2a-527.

(1) After a default by a lessee under the lease contract of the type described in

12A:2A-523(1) or 12A:2A-523(3)(a) or after the lessor refuses to deliver or takes

possession of goods (12A:2A-525 or 12A:2A-526), 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

(12A:2A-504) or otherwise determined pursuant to agreement of the parties ( sections 12A:1-102(3) and 12A:2A-503 ), 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 (i) accrued and

unpaid rent as of the date of the commencement of the term of the new lease agreement,

(ii) the present value, as of the same date, 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 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 (iii) any incidental damages allowed under 12A:2A-530, 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 12A:2A-528 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 chapter. (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 (12A:2A-508(5)).